Downsview Becomes the First Test Site for Canada Builds Homes

Downsview is no longer just a former military base and transit hub. It is now the first place in the country where the federal government is directly stepping in to build homes itself.

The Arbo Downsview neighbourhood, located next to Downsview Park in north Toronto, has been selected as the flagship site for the new national housing program under the federal agency Build Canada Homes. The project represents a shift away from slow, market-only housing models toward a direct-build approach that uses public land to deliver homes faster and at lower cost.

For a city where average rents and home prices have continued to climb despite record construction, the choice of Downsview is no coincidence. The land is large, federally owned, transit-connected, and already approved for high-density development — all the ingredients Ottawa needs to prove that a different housing model can actually work.

What is Canada Builds Homes?

Build Canada Homes was launched in September 2025 as a new federal agency tasked with building and financing housing directly on government-owned land. Rather than waiting for private developers to initiate projects, the agency takes control of the process from planning to construction.

It operates through a “Direct Build” model, where the federal government leads development on selected sites while partnering with builders and housing providers. According to the agency’s mandate, the goal is to produce mixed-income communities that include market-rate homes, affordable rentals, and housing for seniors, all at scale.

This model is designed to bypass some of the slowest and most expensive parts of housing delivery, including land acquisition and early-stage financing. By working with the Canada Lands Company, which manages surplus federal land, the program can move directly from concept to construction on sites that are already publicly owned.

Faster, Smarter Construction with Pre-Fab

The Downsview project will use pre-fabricated construction techniques for many units, where building components are manufactured off-site and assembled quickly on location. This approach reduces construction time, cuts costs, and minimises disruption to the surrounding community. Pre-fab methods also allow for higher quality control, making it easier to deliver homes faster while maintaining durability and design standards.

Why Downsview Was Chosen

Downsview is one of the largest redevelopment sites in Toronto and has been transforming steadily since the former Canadian Forces Base closed. The Arbo Downsview master plan covers approximately 25 hectares (62 acres) and sits next to a major subway and GO Transit hub.

The full neighbourhood has municipal approval for up to 4,000 residential units, with a minimum of 20 per cent designated as affordable housing across the community. That scale, combined with its public ownership history, made Downsview the ideal test site for Ottawa’s new housing strategy (Arbo Downsview approvals).

Toronto’s housing crisis is not just about prices. It is about time. Projects often take a decade or more to move from concept to occupancy. By starting at Downsview, the federal government is showing how much faster housing can move when land, zoning, and financing are aligned from the start.

Inside the First Phase

The first phase of Arbo Downsview will deliver approximately 1,700 homes across several parcels. Two of these parcels are dedicated to federal housing initiatives.

One parcel will be delivered under the Federal Lands Initiative. The second, and most significant, is the Build Canada Homes site, which will create 540 new residential units (Build Canada Homes parcel).

These buildings will include a mix of affordable housing, market-rate rentals, and seniors housing, with building heights ranging from mid-rise to high-rise. The goal is not a single-income project, but a complete community that reflects the city around it.

To move the project forward, a Request for Qualifications to engage builders was issued in October 2025, formally launching the development phase (RFQ announcement).

What This Means at a National Scale

While Downsview is the first site to enter the build phase, it is only one part of a much larger federal housing pipeline. Build Canada Homes has identified six federally owned sites across the country that will be developed using the same Direct Build model.

If the remaining sites follow a similar scale to Arbo Downsview, the national program could deliver:

• 6 federal development sites across Canada
• Up to 24,000 total new homes nationwide (based on ~4,000 units per site)
• More than 10,000 homes in initial phases
• At least 3,000 homes constructed under the federal government’s new direct-build program
• A minimum of 20% affordable housing at every site
• Thousands of additional below-market rentals through layered housing programs
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Because the land is publicly owned and zoning is secured before builders are engaged, the Direct Build approach shortens the traditional development timeline by years. This allows the federal government to move from planning to construction far faster than conventional private-sector projects.

The Downsview project It is the first working model of a federal housing system designed to scale across Canada.