Canada tries massive incentive program to spur new multifamily housing construction

Canada has taken the unprecedented step of offering billions in infrastructure funds to communities in return for eliminating single-family housing zoning.

The country’s latest budget includes 6 billion Canadian dollars to accelerate new construction. Some 5 billion Canadian dollars of that is set aside as conditional infrastructure funds.

To acquire the funds, the nation’s 10 provinces and three territories must require municipalities to eliminate single-family zoning and allow fourplexes. They also must adopt updates to Canada’s advisory building code and enforce renter and home-buyer protections. The policy has climate benefits as well as encouraging construction of badly needed housing, as fourplexes are more energy efficient than single-family residences.

If Canada’s new policy is successful, it might prompt similar policies in the U.S., as both countries delegate zoning policy to municipalities.