Canadian Post-World War II Housing Policy: From Crisis Response to Market Orientation

In the aftermath of World War II, Canada faced an unprecedented housing crisis that demanded swift and decisive government action. The story of Canadian housing policy during this period reveals a fascinating transition from direct government intervention to market-oriented approaches that would shape housing policy for decades to come. This policy evolution began with wartime emergency measures but quickly developed into a comprehensive national housing strategy that continues to influence Canada's approach to housing today.

The Post-War Housing Crisis

As World War II drew to a close, Canada faced a severe housing shortage that threatened to undermine the country's post-war recovery. By 1944, the Curtis report (a study by the Advisory Committee on Reconstruction) calculated that Canada needed approximately 500,000 dwelling units to address the urban housing deficit that had accumulated between 1939 and 1945^[1][2]. This crisis was exacerbated by several factors: the pre-existing housing shortage from the Great Depression, the return of over 620,000 veterans between 1945 and 1946, the arrival of war brides, and the rapid urbanization that had occurred during the war years^[2].

The housing shortage was particularly acute for low and middle-income Canadians, who found themselves unable to secure adequate housing in an increasingly competitive market^[1][2]. With private construction stalled during the war years (construction averaged only 39,000 units annually during the Depression and war years), a significant government intervention was necessary to address this critical situation^[3].

Wartime Housing Limited: Canada's First National Housing Corporation

The Canadian government's response to the wartime housing crisis began even before the war's end with the establishment of Wartime Housing Limited (WHL) in 1941^[1][4][5]. Created under the War Measures Act and the Department of Munitions and Supply Act, WHL was a federal crown corporation tasked with building and managing rental housing for war workers and, later, for veterans and their families^[1][2].

Between 1941 and 1947, WHL constructed almost 26,000 rental housing units across Canada^[2]. The program initially targeted construction for war workers in industrial centers, but after May 1944, it shifted focus to housing soldiers' dependents and veterans^[2]. WHL conducted careful surveys to determine areas of greatest need before directing its projects accordingly^[2].

The homes built by WHL were modest but functional. Many were prefabricated in factories and could be erected in as little as 36 hours^[6]. These homes—often called "strawberry-box" or "victory houses"—were initially intended as temporary structures but were later converted to permanent dwellings with the addition of basements^[6]. By some estimates, over 40,000 of these small homes were built across Canada between 1942 and 1948^[6].

What made WHL particularly remarkable was its approach to affordability: rent for these homes typically cost roughly one-fifth of a household's income, making them significantly more affordable than what is available in most Canadian cities today^[6].

The Establishment of CMHC and Policy Transition

In January 1946, the federal government established the Central Mortgage and Housing Corporation (CMHC) to administer the National Housing Act and to absorb the operations of Wartime Housing Limited^[4][7]. This transition marked a significant turning point in Canadian housing policy.

After the January 1947 integration of WHL and CMHC, the veterans' housing program continued. By 1949, the total number of veterans' dwellings completed by CMHC had reached 20,159 units^[2]. In Vancouver, for example, planned veterans' rental housing subdivisions like Renfrew Heights and Fraserview were developed in 1947 and 1948^[2].

While the establishment of CMHC represented a continuation of government involvement in housing, it also signaled a shift in approach. Rather than focusing primarily on direct construction of rental housing, post-war policy increasingly emphasized home ownership and private enterprise^[1][5][2]. This shift occurred despite the Curtis Report's recommendation for "a national, comprehensive housing program emphasizing low-rental housing"^[1][5].

From Direct Intervention to Market Orientation

The federal government's response to the housing crisis ultimately took two distinct forms: direct intervention through WHL and later CMHC's building programs, and indirect support through financing and policy measures designed to stimulate private market activity^[1][2].

After 1944, the government augmented its indirectly interventionist and market-directed program by replacing the 1938 National Housing Act with a new act that encouraged home ownership and rental housing construction^[2]. It also provided financial assistance to veterans for land and housing purchases through the 1942 Veterans Land Act^[2].

This dual approach reflected a tension within government policy between addressing immediate social needs and maintaining a commitment to market-oriented solutions. Between 1944 and 1946, the government demonstrated "an awareness, however hesitant, of the social need for shelter that contradicted its long-term, market-oriented approach to housing"^[2]. However, this awareness did not translate into a permanent commitment to direct housing provision.

Public Housing Development (1947-1986)

Despite the shift toward market-oriented approaches, public housing development did continue in the post-war decades. From 1947 to 1986, a total of 253,500 public housing units were built across Canada^[3]. The distribution of these units varied significantly by province, with Ontario claiming the largest share (43%), followed by Québec (22%), British Columbia (8%), Manitoba (7%), and Alberta (5%)^[3].

Public housing, which was managed directly by government, primarily served seniors, families, and others with specific housing and support needs^[3]. The location of public housing projects reflected both the extent to which provincial governments participated in cost-shared programs and areas with traditionally low vacancy rates^[3].

Shift to Non-Profit and Cooperative Housing

A significant policy shift occurred between 1974 and 1986 when governments moved away from directly building and managing public housing toward funding non-profit groups to provide affordable housing^[3]. Churches, cooperatives, and municipalities received government support to develop more than 220,000 units of non-profit and cooperative housing^[3]. These units were allocated to house families (50%), seniors (40%), and others with specific needs (10%)^[3].

This shift represented an attempt to address some of the criticisms of traditional public housing while still acknowledging a government role in ensuring housing accessibility. It reflected a growing recognition that diverse approaches were needed to address the complex housing needs of different populations.

Evolution of Housing Programs and Policies

Canadian housing policy continued to evolve throughout the post-war decades. The 1954 amendment to the National Housing Act led to the creation of government-insured mortgage institutions, which sought to make loans more accessible for low-income and rural households^[7]. This represented a further commitment to addressing housing needs primarily through market mechanisms rather than direct provision.

During the 1970s, several policies were implemented that focused more heavily on inexpensive rental accommodations, including the Assisted Rental Program and Canada Rental Supply Program^[7]. These programs attempted to address the growing affordability challenges in Canada's rental markets.

However, following changing policies and budget cuts in 1993, responsibility for housing was increasingly transferred from federal to provincial, municipal, and local jurisdictions^[7]. This decentralization of housing policy represented a significant shift in the governance of housing in Canada and created a more complex and varied policy landscape.

Legacy and Contemporary Relevance

The legacy of Canada's post-WWII housing policies continues to influence the housing landscape today. Many of the modest "strawberry box" houses built during this period still dot neighborhoods across Canada, serving as a visible reminder of this era of housing policy^[8].

More significantly, the decision to privatize WHL's stock of affordable housing in the late 1940s and to prioritize homeownership over rental housing has had long-lasting implications for Canada's housing system^[2]. Some housing policy experts argue that this market-oriented perspective "hindered advances in postwar housing policy in the same way that, for decades, the poor law tradition blocked government acceptance of unemployment relief"^[2].

Contemporary Housing Crisis and Policy Responses

Canada is currently experiencing another housing crisis that has drawn comparisons to the post-WWII situation^[9][8][10]. In response, there has been growing interest in reviving some of the approaches used during that earlier period.

In December 2023, the federal government announced it would resurrect the post-war idea of developing a housing design catalogue to accelerate home construction^[8]. Housing Minister Sean Fraser indicated that the initiative would focus on standardizing housing designs for low-rise construction initially, with potential expansion to higher-density buildings and different forms of housing construction, including modular and prefabricated homes^[11][8].

More recently, in March 2025, Liberal Leader Mark Carney announced plans to create a new entity called "Build Canada Homes" (BCH), which would act as a developer to build affordable housing, including on public lands^[9][10]. The plan would provide over $25 billion in financing to prefabricated-home builders in Canada and an additional $10 billion in low-cost financing for affordable-home builders^[10]. Carney explicitly framed this proposal as "Canada's most ambitious housing plan since the Second World War"^[9].

Conclusion

Canada's post-WWII housing policy represents a critical chapter in the nation's approach to housing provision. Beginning with the direct intervention of Wartime Housing Limited and evolving through the establishment of CMHC and various subsequent programs, this period saw the Canadian government take unprecedented steps to address housing needs.

However, the decision to shift from direct provision toward market-oriented approaches has had profound implications for Canada's housing system. As the country once again faces significant housing challenges, policymakers are looking back to this earlier period for potential solutions and approaches. The renewed interest in government-led housing initiatives suggests a potential shift in the policy pendulum back toward more direct forms of intervention, though within a very different economic and social context than existed in the 1940s.

The lessons of post-WWII housing policy remain relevant today: the importance of decisive government action in times of crisis, the tension between direct intervention and market-oriented approaches, and the long-term consequences of housing policy decisions that can shape communities and lives for generations to come.

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• https://www.erudit.org/en/journals/uhr/1986-v15-n1-uhr0856/1018892ar.pdf       
• https://willbreckenridge.ca/wp-content/uploads/2024/07/wartime-housing.pdf                
• https://www.thecanadianencyclopedia.ca/en/article/housing-and-housing-policy        
• https://en.wikipedia.org/wiki/Canada_Mortgage_and_Housing_Corporation  
• https://open.library.ubc.ca/soa/cIRcle/collections/ubctheses/831/items/1.0096317   
• https://www.cbc.ca/news/politics/election-housing-proposals-wartime-homes-1.7498658    
• https://en.wikipedia.org/wiki/Public_housing_in_Canada    
• https://www.nationalobserver.com/2023/12/12/news/postwar-designs-modern-twist-housing-crisis    
• https://liberal.ca/wp-content/uploads/sites/292/2025/03/Mark-Carneys-Liberals-unveil-Canadas-most-ambitious-housing-plan-since-the-Second-World-War.pdf   
• https://financialpost.com/real-estate/carney-to-revive-wartime-era-homebuilding   
• https://readsitenews.com/wartime-homes-why-canada-is-reviving-an-80-year-old-idea/