Environmental scan and risks

In 2022, the Canada Mortgage and Housing Corporation announced the need for 3.5 million more housing units by 2030, to restore affordability. This past year marked a turning point for Canadians, as the government announced a pledge to address housing shortages by renewing affordability and increasing access to homes through an ambitious housing plan, Solving the housing crisis: Canada’s Housing Plan. The objective of Budget 2024 is to build housing at a pace and scale not seen in generations, disposing of federal lands to build housing, including lands under the Department of National Defence (DND) custodianship, and exploring dual-use options in support of housing for the Canadian Armed Forces (CAF) and Canadians in Esquimalt, Toronto and Halifax.

The spotlight is on military housing like never before. Beginning in October 2023, the Standing Committee on National Defence began studying the lack of housing availability on or near bases and the challenges facing members and their families when relocating. Their study, Gaps to Fill: Housing and Other Needed Supports for Canadian Armed Forces Members and their Families, was released in October 2024. An official response will be tabled in Parliament in early 2025. In November 2024, the Office of the Auditor General also announced an audit on Housing Canadian Armed Forces Personnel. The impacts of these recent developments are unknown and may trigger further changes.

The landscape is continually shifting, however, there are several environmental factors that may impact the Agency’s delivery of the Defence Residential Housing Program. The following summarizes the current environment and trends to be considered:

Canadian Armed Forces demographics

Over the last two decades, there has been a significant shift in the diversity and composition of the regular and reserve forces and their household and family structures. It will be important to monitor these trends to be responsive to evolving needs.

Real estate market

There is a housing crisis in Canada, impacting those in the rental and home ownership markets. The cost of living and housing affordability and availability remain significant challenges for CAF members and all Canadians, especially in major urban centres.

DND/CAF are providing additional supports through compensation and benefits, such as the Canadian Forces Housing Differential, relocation-related fee reimbursements, and other policy and program changes.

The Canadian Forces Housing Agency (CFHA) will continue to monitor and adjust its program in order to alleviate the housing and relocation pressures facing CAF members and their families.

Indigenous reconciliation

An increased priority is given to Indigenous reconciliation efforts through the delivery of the Agency’s projects and program. There are significant opportunities for CFHA to support the objectives of DND and the Government of Canada in communities from coast to coast to coast. The Agency will identify opportunities to advance reconciliation and engage with Indigenous communities in the delivery of its program.

Greening commitments

An increasing awareness of environmental sustainability and climate change, as well as regulations aimed at reducing carbon emissions and promoting green building practices, prompts a shift towards eco-friendly and energy-efficient housing solutions. Integrating smart technologies can contribute to overall energy efficiency and cost savings to occupants. CFHA commits to a net-zero ready portfolio by 2050, in support of building sustainable communities.

Technology

The global technology environment is continuously changing and requires regular environmental scanning to remain in step with emerging capabilities such as AI, Cloud, and machine learning.

CFHA’s Special Operating Agency business model provides the Agency with the agility to mobilize resources to achieve business modernization goals.

Digital services

Government policies on service, digital, and open government legislative requirements, along with the pursuit of excellence and improvements in services to customers, necessitate a focus on digital solutions, management approaches, and business practices that facilitate modernization.

Environmental scan key findings reveal opportunities and strategic risks for the Agency. In addition to the factors listed above, the capacity for our partners to deliver (industry, DND Real Property Operations, Defence Construction Canada and Public Services and Procurement Canada) and within CFHA–will be monitored annually. This monitoring will occur during annual departmental business planning and work planning cycles to determine whether to accept, mitigate, or transfer each risk.