Federal Housing Update Highlights Need to Review Rising Building Code Costs
Kelowna, BC – The Canadian Home Builders’ Association of the Central Okanagan (CHBA-CO) says the federal government’s 2026 Spring Economic Update contains encouraging signals that Ottawa is recognizing a key housing challenge: the rising cumulative cost of building code changes and regulatory requirements on new homes.
CHBA-CO says while individual code updates are often introduced with modest estimated impacts, the total effect over time has significantly increased the cost of delivering new housing.
“We know that building more homes, faster and more affordably, means looking at every part of the system, including how building codes and regulations impact costs over time,” said the Honourable Stephen Fuhr, Member of Parliament for Kelowna and Secretary of State for Defence Procurement. “The Spring Economic Update recognizes the need to reduce barriers and support more efficient construction, and we will continue working with industry and all orders of government to ensure Canadians can access homes that are both high-quality and attainable.”
“Our industry is constantly told each update only adds $1,000 here or $2,000 there,” said Cassidy deVeer, Executive Officer of CHBA-CO. “But housing affordability has suffered death by a thousand cuts for over a decade. Every new requirement layers additional cost onto the next generation of homebuyers.”
“We are encouraged to see the federal government recognizing that affordability is shaped not only by interest rates, but also by the rules and costs attached to building homes,” said deVeer.
The association notes Canada is not alone in facing this challenge. Australia recently paused further changes to its National Construction Code until 2029 after its Productivity Commission found that frequent code changes were slowing housing delivery and increasing costs. CHBA-CO says Canada should carefully consider similar lessons as governments review future building code policy.
“Australia recognized that constant code churn was hurting affordability and slowing supply. Canada should be willing to learn from that,” added deVeer.
The association says safe, durable, and energy-efficient homes remain essential priorities, but affordability must also become a formal consideration in future code decisions.
“We are not arguing against better homes,” said deVeer. “We are arguing for honest conversations about what better homes cost, who pays for them, and whether young families can still afford to buy them.”
CHBA-CO notes that recent federal language around reviewing regulatory barriers and supporting more efficient construction methods is encouraging.
The association says future code updates should include:
- Full cost-benefit analysis
- Cumulative affordability review
- Regional practicality considerations
- Clear implementation timelines
- Consistent enforcement and interpretation
- Support for innovation and productivity
“No single code change usually breaks affordability,” added deVeer. “It is the accumulation of dozens of smaller changes over time that pushes ownership further out of reach.”
CHBA-CO says housing affordability discussions often focus on interest rates and land values, while the growing regulatory cost side of the equation receives far less public attention.
“This is a constructive step from Ottawa. If all levels of government now apply the same affordability lens, it can help more homes get built and more Canadians get into ownership.”
CHBA-CO represents the residential construction industry in the Central Okanagan, including builders, renovators, developers, trades, suppliers, and professional service members committed to housing choice, affordability, and strong communities.
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Media Contact:
Cassidy deVeer
Executive Officer
Canadian Home Builders’ Association – Central Okanagan
cassidy@chbaco.com