Canada Solved a Housing Crisis in the 1940s—Why Can’t We Do It Now?

Why Can’t We Do It Now?

If Canada could rapidly build housing during wartime, why can’t it do the same today to lower housing costs and increase supply? Is a crisis not enough? Must we be in a state of war for bold action to happen?

Canada’s Wartime Housing Plan

During World War II, the federal government launched a large-scale housing initiative to meet urgent demand. Wartime Housing Limited (WHL), a Crown corporation created in 1941, was responsible for building affordable rental homes for war workers and returning veterans.

How It Worked:

• The government invoked the War Measures Act to create WHL.

• WHL purchased land and contracted builders to construct homes.

It developed simple, affordable housing, including the Victory and Strawberry Box houses.

Why It Was Implemented:

• Cities needed housing for the influx of workers supporting wartime industries.

• Veterans returning from the war required affordable places to live.

What Happened After the War?

• In the late 1940s, the federal government privatized WHL’s housing stock.

• It gradually withdrew from housing programs, leaving the private sector to take over.

Lessons for Today:

• The federal government has the capacity to directly address housing shortages by building homes.

• Standardized designs and government-backed construction can accelerate homebuilding and keep costs low.

If bold government action was possible in the 1940s, why not now?