Today, the Honourable David J. McGuinty, Minister of National Defence, visited the Uplands site of Canadian Forces Support Group (Ottawa-Gatineau) to announce the launch of the second phase of Canada's national housing construction program - a major expansion of military housing that plans to deliver approximately 7,500 new Residential Housing Units (RHUs) across Canada.
Through the Canadian Forces Housing Agency (CFHA), the Department of National Defence (DND) will build on the accelerated progress of the first phase, which is already delivering over 800 new units in nine locations experiencing significant housing pressures.
Construction of primarily one and two-bedroom unit apartment buildings is planned at all 25 locations where CFHA currently operates, including approximately 280 units in Ottawa. The five locations with the largest planned growth include Valcartier, Quebec, Petawawa, Ontario and Edmonton, Alberta, with over 1,000 new housing units each; Kingston, Ontario, with over 900 housing units, and Gagetown, New Brunswick, with over 500 housing units.
To enable this work, Defence Construction Canada issued an advanced procurement notice for potential projects valued at approximately $3.74 billion. This notice will inform contractors of upcoming construction opportunities at locations across the country and support early engagement with industry. CFHA is collaborating with Build Canada Homes - the federal agency for affordable and non‑market housing - to support housing delivery by leveraging Modern Methods of Construction (MMC), including modular and prefabricated building systems and the use of low‑carbon materials. This partnership directly supports Canada's national commitment toward innovative, sustainable, and scalable housing production, strengthening the country's capacity to deliver high‑quality homes efficiently.
Investing in military housing plays a strategic role in strengthening the domestic supply chain. As one of Canada's largest economic sectors, construction generates broad employment across skilled trades, engineering, architecture, site supervision, logistics and manufacturing. Phase 2 of the construction program will support substantial labour demand nationwide, creating thousands of job‑years over the program's duration, and drive procurement of Canadian materials-such as steel, lumber, concrete, and mechanical and electrical systems, supporting Canadian industry competitiveness.
It will also support Indigenous employment, business growth and long‑term economic reconciliation through mandatory procurement targets and site‑specific Indigenous Benefits Plans aiming to exceed the mandatory 5% of the program's contracting value to Indigenous businesses.
This investment strengthens the CAF's ability to recruit and retain its members by improving access to safe and modern housing and supporting local economies through construction activity in communities across the country. Modern, energy-efficient residential housing directly enables operational readiness, enhances quality of life for CAF members and reduces pressure on local housing markets in surrounding communities.
