Let’s Stop Building Homes in Harm’s Way

By Liam McGuinty, Chair, Climate Proof Canada, and Vice-President, Federal Affairs, Insurance Bureau of Canada

Canada is facing both a housing crisis and a climate crisis. We can’t solve one by ignoring the other.

The federal government’s launch of Build Canada Homes to help construct 3.9 million new homes by 2031 is ambitious and necessary. But here’s the hard truth: if we build these homes in the wrong places, we’re setting Canadians up for heartbreak.

Recent events have laid bare the dangers of ignoring today’s climate realities. Wildfires in British Columbia and Manitoba have displaced thousands. Record-breaking floods in Nova Scotia and Quebec have caused billions in damage. Severe storms from coast to coast have overwhelmed infrastructure and devastated communities. Fires, floods, hailstorms, and hurricanes are rewriting the map of where it’s safe to live in Canada.

At this point, building homes in known danger zones isn’t just risky. It’s downright reckless.

Yes, housing affordability is critical. But the most expensive home is the one we need to rebuild. A new home on a flood plain isn’t affordable if insurance premiums go through the roof or if it gets washed away in a springtime torrent. A subsidized rental in a wildfire-prone area isn’t affordable if families are forced to evacuate every year and they lose their homes and possessions to a summertime blaze.

And yet, as a country, we’re on track to put more Canadians in harm’s way.

Unless policies change, Canada could end up building 540,000 new homes in areas at very high risk of flooding and 220,000 new homes in municipalities exposed to severe wildfire danger (source: Canadian Climate Institute). The result would be up to $3 billion in additional property damage and loss each year and untold risk to the lives of Canadians.

It doesn’t have to be this way.

The federal government is aware of the risks. During the last election campaign, the Liberal platform made a clear commitment: “To protect homeowners and renters from costly flood and wildfire risks, federally supported housing will not be built in areas that are at high risk for floods and wildfires.”

It was a smart promise then. It’s the smart path forward now – especially for a government that aspires to reduce inequality and expand opportunity. As the climate crisis deepens, low-income and marginalized communities are disproportionately pushed into higher-risk zones where disasters hit hardest, recovery is slowest, and rebuilding is most expensive.

The path forward for government is clear: attach well-defined conditions to federal housing dollars. No taxpayer money for new homes in high-risk floodplains. No federal funding or support for new homes in high-risk fire zones without community-level mitigation. In other words, no more short-term fixes that create long-term liabilities – and no more ignoring the climate realities that are reshaping our country.

Budget 2025 is the perfect opportunity to make this commitment real. By attaching clear conditions to all federal housing investments, we can ensure taxpayer dollars are used wisely to build homes that are affordable for the long term.

Canada needs millions of new homes. But we need them built to last. If we get this right, Canada can lead the world in climate-resilient housing policy. We can protect families from future disasters, save billions in potential damages and insurance costs, and build safer, more resilient communities for generations.

Every new home is a choice about our future. Let’s make the smart choice.

Climate Proof Canada is a coalition of over forty organizations urging the federal government to act now to create a culture of preparedness and build a more disaster-resilient country. Liam McGuinty is Chair of Climate Proof Canada and Vice-President, Federal Affairs, at Insurance Bureau of Canada.

Contact Us

For further information on Climate Proof Canada, please contact Liam McGuinty of Insurance Bureau of Canada:

Liam McGuinty

VP, Federal Affairs (Interim)
Insurance Bureau of Canada
C: 416.707.1143
lmcguinty@ibc.ca | ibc.ca