Canada does not have to build every new home from the ground up. As the federal government moves to accelerate affordable housing through Build Canada Homes, it should make adaptive reuse of existing buildings a core part of its strategy – turning underused offices into apartments, relocating existing homes to new sites, and extending the life of buildings that still have value.

This is an opportunity to deliver homes faster, make better use of existing infrastructure, reduce construction waste and embodied carbon, and unlock private investment. At a time when housing affordability is under pressure and construction costs remain high, we cannot afford to overlook the buildings we already have.

An untapped opportunity hiding in plain sight

Canada’s office market presents an obvious place to start. As of the third quarter of 2026, there is an estimated 80 million square feet of vacant office space across Canada. While demand for premium office space is recovering, older Class B and C buildings continue to face challenges. CBRE’s Q3 2026 Canada Office Figures report shows that national office vacancy has declined to 16.7%, but the gap between premium and lower-tier office buildings has reached a historic high. Class B and C buildings continue to struggle as tenants prioritize newer, higher-quality space.

The scale of the opportunity is already evident. According to CBRE, 9.6 million square feet of office space has been removed from Canada’s office inventory through conversions since 2021, with an additional 3 million square feet demolished over the same period.

These figures demonstrate that the market is already adapting. However, the opportunity extends beyond projects currently underway. Leading architects working in building transformation have estimated that approximately 20-30% of office buildings may be suitable for conversion, depending on local conditions.

Not every vacant building is a viable candidate: floorplate depth, window access, structural systems, mechanical infrastructure, zoning, renovation costs, and seismic considerations all matter. Nevertheless, Canada’s older office stock represents a meaningful opportunity to create housing from buildings that already exist.

As office leasing improves, some owners are reconsidering redevelopment. Public policy should therefore focus on buildings that are genuinely obsolete or economically uncompetitive as offices, where conversion can provide a better long-term use.

Faster, more affordable housing by reusing what works

Office-to-residential conversions can offer meaningful advantages over demolition and new construction. Reusing an existing structure can reduce the need for new materials, avoid portions of a lengthy demolition and construction process, and preserve the value already embedded in a building. Depending on the building and project conditions, conversions can be faster and less expensive per square foot than starting from scratch.

That matters when developers are navigating high material costs, supply-chain uncertainty, financing constraints, and lengthy approval processes. Adaptive reuse can also make productive use of existing water, sewer, transit, and other urban infrastructure, while bringing residents, businesses, and activity back to revitalize downtown cores and surrounding areas.

The same principle applies beyond commercial real estate. Home relocation, which looks to move an existing house to a new site rather than demolishing it, can preserve a usable building while creating an opportunity for new housing. As highlighted in this 2023 report by Light House, where suitable sites, transportation routes, and building conditions exist, home relocation can avoid substantial demolition and replacement costs, conserve materials, and extend a home’s useful life while bringing communities affordable housing solutions.

Neither approach is a universal solution. Both require careful technical assessment, appropriate approvals and viable project economics. But both deserve to be treated as legitimate housing-delivery strategies, rather than exceptions to the conventional build-new model.

Calgary has shown what targeted incentives can achieve

The City of Calgary provides an encouraging example of how public incentives can unlock private-sector investment.

Its Downtown Office Conversion Program offers developers up to $75 per square foot to help make eligible projects financially viable and bring developers to the table. More than 20 office-to-residential conversions, including a dozen Class B office buildings, have been successfully transformed in Calgary’s downtown core. Calgary’s experience has demonstrated how targeted financial support can help bring underused buildings back to life and add homes to the downtown housing supply.

One example is the Neoma building where developer Home Space revitalized a vacant downtown office tower, providing over 80 units of affordable housing, as well as a childcare center, family shelter, and programming space.

The lesson is straightforward: a focused public investment can help overcome the financial gap between an under-performing office asset and a viable redevelopment project. It can also give building owners and developers the confidence to investigate conversion opportunities and bring forward proposals.

Build Canada Homes could adapt this approach as part of its National Housing Strategy. A federal incentive of up to $75 per square foot, targeted at eligible office-to-residential conversions that deliver affordable housing, could help close project feasibility gaps and mobilize private capital. Funding could be conditional on affordability outcomes, project readiness, additional housing delivery and demonstrated conversion potential.

A national target with measurable results

Build Canada Homes has an initial federal investment of $13 billion over five years. Alongside its investments in new construction, it could establish a national target to convert 15 million square feet, of under-utilized and vacant office space into housing over the next five years (equal to approximately 20% of total vacant office space in Canada converted into more than 20,000 housing units).

At an illustrative incentive rate of $75 per square foot, supporting the entire 15-million-square-foot target would require $1.1 billion, equal to approximately 9% of Build Canada Homes’ initial $13 billion investment. This is a potential maximum, not necessarily the amount that government would need to spend. A competitive program could focus on projects with demonstrated financing gaps, require private-sector co-investment, and prioritize those delivering affordable homes.

The same national approach could explore home relocation projects, particularly where moving existing homes can preserve housing stock and create more affordable options.

Circular construction is part of the housing solution

At Circular Construction Canada (CCC), we believe extending the life of existing buildings should be a fundamental part of how Canada plans, finances, and delivers housing.

Through our project on Adaptive Reuse of Existing Buildings in Canada , we are developing a practical guide and toolkit to help building owners, developers, architects, and other industry professionals assess opportunities, evaluate costs and benefits, and make informed decisions about repurposing existing buildings.

This work aims to help close the knowledge and business case gaps that can prevent promising projects from moving forward. Combined with targeted incentives and supportive policies, it can help turn isolated examples into a repeatable approach across Canadian communities.

Build Canada Homes has an opportunity to redefine what it means to build housing at scale. That should mean more than constructing new buildings faster. It should mean making the best possible use of the buildings, materials, and infrastructure we already have.

Canada’s affordable housing strategy should not be limited to building more. It should also prioritize reusing more – and make adaptive reuse a mainstream tool for delivering the homes Canadians need.