Canada Sets $1.25B Budget for Affordable Rental Housing

residential street with rental homesCanada plans to increase the supply of affordable rental housing properties by planning to spend $1.25 billion in the next three years.

The investment means that home builders will need more construction equipment and products, including steel fabrication work. In Edmonton, for instance, your next home construction plan should consider contracting services from large manufacturing shops that can handle different projects.

Affordable Housing Investment

Canadian Finance Minister Bill Morneau said that the Rental Construction Financing Initiative (RCFI) would pave the way for the construction of 14,000 new rental properties nationwide. It will complement the National Housing Strategy’s target of building 100,000 new homes and repair 300,000 existing properties, according to Morneau.

For this reason, residential property developers and construction firms in Alberta should take advantage of clinching contracts from the RCFI. They, however, need to work on recruiting and retaining workers. A BuildForce Canada forecast showed that the province’s construction industry would have to deal with the problem of replacing retiring workers.

Skills Gap

An estimated 40,000 workers would retire by 2027, presenting a challenge for companies in Alberta. Demand for construction may be high, and the RCFI could further sustain it, yet your company may suffer from crippled operations if you are unable to recruit new workers.

A “skills gap” is part of the problem, according to BuildForce Canada CEO Bill Ferreira. Steel fabrication, for instance, requires a certain degree of training and experience. Luckily for construction firms, some companies provide the necessary human resources for specific skills. Your business may use this in the meantime while you revamp your workforce.

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The RCFI will address the problem of affordable housing supply in Canada, while also providing potential business to construction companies. If you plan to capture as much business from the proposed investment, you need to have a stable source of supplies and manpower.