The federal government has launched the second phase of a national housing-construction program that will deliver approximately 7,500 new apartment units for Canadian Armed Forces members and their families across the country.

The announcement was made Tuesday at the Uplands site of the Canadian Forces Support Group (Ottawa-Gatineau, Que., region) by the Department of National Defence and the Canadian Armed Forces.

“Canadian Armed Forces members and their families deserve safe, modern and affordable housing,” said National Defence Minister David McGuinty. “This historic expansion — including 280 new homes here in Ottawa — is one of the most significant investments in military housing in decades.

“By building at speed and scale across the country, we are strengthening operational readiness, supporting recruitment and retention, and giving military families the stability they need to thrive.”

Through the Canadian Forces Housing Agency, the department will oversee construction at 25 locations where the agency operates, including about 280 units in Ottawa. The largest planned expansions are in Valcartier, Que., Petawawa, Ont., and Edmonton, with more than 1,000 units each; Kingston, Ont., with more than 900 units; and Gagetown, N.B., with more than 500 units.

Phase 2 follows a first phase announced in January 2025 that initially launched construction of 668 residential housing units, now totalling more than 800 units in nine locations facing significant housing pressures. Combined, the two phases will deliver up to 7,500 new builds nationwide.

“Phase 2 is our largest construction campaign since the creation of the portfolio in the post-Second World War era,” said Paola Zurro, CEO of the Canadian Forces Housing Agency. “The Canadian Forces Housing Agency will work with industry to deliver housing at an unprecedented speed and scale to support Canadian Armed Forces members and their families.”

To support the expansion, Defence Construction Canada has issued an advanced-procurement notice for projects valued at approximately $3.74 billion. The housing agency is also collaborating with Build Canada Homes to leverage modern methods of construction, including modular and prefabricated building systems and low-carbon materials.

The program is part of a broader $1.4-billion, 20-year commitment under Canada’s defence policy, Our North, Strong and Free: A Renewed Vision for Canada’s Defence, to modernize housing for CAF members and their families.

“By investing in thousands of new homes for members of the Canadian Armed Forces across the country, we are strengthening communities, easing pressure on local housing markets, and building quality housing that Canadians need,” said Gregor Robertson, the Minister of Housing and Infrastructure. “This national expansion is an important step in building more affordable homes, supporting good jobs, and ensuring that the members who serve our country have housing that meets their needs today and into the future.”

The federal government said Phase 2 will span 25 sites across six regions and is expected to generate thousands of job-years while driving demand for Canadian materials such as steel, lumber, concrete, and mechanical and electrical systems. The program also includes mandatory procurement targets and Indigenous Benefits Plans, aiming to exceed the required 5% of contracting value directed to Indigenous businesses.

In Ottawa, about 160 of the 280 new units will be built at the Uplands site, with additional housing locations under consideration. The agency currently manages more than 11,700 residential housing units nationwide.

Pictured: Fifth Division Support Base Gagetown in Gagetown, N.B.