This week was ripe with news from all three major political parties releasing their costed platforms for what is the 45th general election here in Canada. Alongside all of the other problems that our great nation faces, the housing affordability crisis still remains a very big issue, which begs the question, how will the promises in the costed platforms impact Canada’s housing market?
First, let’s look at the New Democratic Party of Canada’s Costed platform, which was the first to be released on April 19th. The NDP has promised a lot of measures for housing affordability and tenant protections. They are promising to fund $28 billion in housing investments including $16 billion for the Canadian Homes Transfer and Communities First Fund as well as $2 billion to expand the Rental Protection Fund for non-profits to acquire affordable rentals. They are also proposing to intervene in the market to help create 3 million new homes by 2030 as well as National rent control tied to federal funding for provinces/municipalities. The last major aspect about their platform is that they are proposing a ban on corporate landlords.
The Liberals were second to release their costed platform. This party is promising to allocate $36.8 billion over four years to housing affordability as well as $10 billion for long-term fixed-rate financing. They are also promising to double annual construction to approximately 500,000 homes and to build 4 million new homes by 2035. Additionally, they are proposing a GST exemption for first-time buyers as well as tax relief for landlords alongside a 1% tax cut for the lowest bracket. This platform contrasts the NDP platform by emphasizing market-driven solutions and tax policy over direct affordability interventions like rent controls.
Lastly, today the Conservative Party of Canada finally released their costed platform, making them the last to do so. This party promises to build 2.3 million homes in five years, selling off 15% of federal properties for affordable housing, eliminating GST on new homes priced under $1.3 million to reduce costs for buyers and to reimburse municipalities 50% of development charge cuts to lower upfront costs. They are also promising to cut CMHC approval timelines to 60 days and to simplify the national building code.
In my view, the Liberal plan is the best, as it properly blends direct government investment with market incentives, ensuring both immediate and long-term supply increases. Further, unlike the other two parties, I am of the belief that the Liberals directly address both supply and demand, which would serve to help both buyers and renters while still encouraging new builds and housing starts. Further, this plan is practical in scope, as it works with provinces and municipalities through funding incentives rather than imposing strict mandates, making implementation more likely.
As a seasoned real estate professional with over two decades of experience in the industry, I have witnessed first-hand the challenges of Canada’s housing market and regularly stay abreast with the latest policy changes and market trends. With my in-depth understanding of local conditions, I can help you make informed decisions that align with your long-term financial goals. Don’t navigate this complex market alone – reach out to me for personalized advice on how to make the most of your real estate investments in this evolving landscape.
SP Singh Ahluwalia 