Canada cannot solve the housing affordability crisis by building homes that are expensive to heat, power, and maintain.

The home itself is the tip of the iceberg.

Beneath every home is a system of energy, water, and wastewater infrastructure that costs billions to build and maintain. Less-efficient homes consume more electricity, leaving less capacity for additional housing. With fewer homes to share the costs, rates rise for each home.

When homes are less efficient, that infrastructure reaches its limits faster, reducing the number of homes it can support.

 Without considering these factors, we limit the number of new homes that can be built.

Energy efficiency is also significantly cheaper than adding costly new energy supply. The Ontario Clean Air Alliance Research (2024) found that new electricity generation costs about 10 times more than conservation. Millions of kilowatt-hours are available through conservation at 3 cents per kWh, compared to 15-30 cents per kWh for new generation. Using conservation would reduce the need for costlier new energy.

A Roadmap for Ottawa

Ottawa Community Housing (OCH) is demonstrating that sustainable, high-performance buildings are within reach and can be built affordably. Its Total Cost of Building Ownership (TCBO) Case Study found it’s possible to cut new buildings’ energy use by up to 50% for only 3-5% more in up-front costs. The study also shows lower overall Total Cost of Building Ownership for high-performance buildings compared to code-built structures. The result is more predictable utility costs, better comfort during extreme heat and cold, and homes that remain affordable over the long term.

Innovation isn’t just possible—it’s practical, and it’s how we can keep homes affordable.

This due diligence will support the next 5,000 OCH homes being more efficient, more resilient, and more affordable in the long term..

Supporting Local Economies

The City of Ottawa alone spends over $2.8 billion annually on energy to power buildings and vehicles, according to Ottawa’s Climate Change Master Plan data, including fossil fuels (71%) and electricity (29%).

This highlights the urgent need to invest in renewable energy and energy efficiency. Investments like energy-efficient homes, solar panels, and heat pumps not only create jobs, but support local economies, keeping money local and attracting manufacturing. The impact is immediate and far-reaching.

Sustainable design is a long-term strategy. Smart choices up front mean protection against volatile energy prices, lower long-term costs, stronger communities, and housing that stays affordable.

Daniel Dicaire is senior manager of sustainability and conservation at Ottawa Community Housing.