Prime Minister Mark Carney's ambitious promises to accelerate infrastructure development and housing construction are encountering significant delays, as the federal government extends consultation periods and economic forecasts predict a slowdown in new home building.
Infrastructure consultation process extended
The federal government announced last week that it is extending the public consultation process for nation-building projects such as ports, railways, energy corridors, pipelines, critical minerals, and clean energy. Originally announced on May 8 with a 30-day completion timeline, the consultation period has now been extended to July 22. This delay pushes back reforms to the current system, which Carney has described as overly complex, repetitive, and burdensome for proponents of new infrastructure.
While a 44-day extension may seem modest, it raises concerns that further delays could hamper the goal of establishing a 365-day approval process for major projects.
Housing targets off to a slow start
Carney's promise to double new home construction to 500,000 units annually by 2035, achieving "speeds not seen in generations," is also facing headwinds. The parliamentary budget office reported in December that the $13 billion allocated to affordable housing through the Building Canada Homes agency is expected to add only about 26,000 units over five years—a modest contribution.
According to the Canada Mortgage and Housing Corporation (CMHC), housing starts across Canada totaled 259,028 last year, a 5.6% increase from 2024. However, CMHC warns that with slower economic growth expected through 2028, new home construction is set to decline as developers face high costs, weaker demand, and an oversupply of unsold homes. Condominium starts are expected to be particularly weak.
Pipeline project faces hurdles
The proposed bitumen pipeline from Alberta to British Columbia, agreed upon in a memorandum of understanding between Premier Danielle Smith and Carney, still faces significant obstacles. Opposition from the B.C. government and some Indigenous groups, along with the federal moratorium on oil tankers off the B.C. coast, must be addressed before the project can proceed.
These developments underscore the gap between Carney's ambitious growth targets and the practical realities of implementation, as economic and regulatory challenges continue to slow progress.
