A Scotiabank report on housing affordability showed that over 10% of Canadian households, or 1.5 million individuals, were in ‘core housing need with an additional quarter of a million Canadians experiencing homelessness.
Canada’s housing crisis is multi-faceted, layered and systemic. Over the years, it has taken many shapes that further amplify the challenges potential homeowners and renters face.
These factors include:
- High inflation with high interest rates
- Financialized landlords
- Increasing rent
- Conversion of rental stock
- High immigration volume
- Lack of skilled trades workers
- Minimal nonprofit and cooperative housing
- Growing income disparity
- NIMBY (not-in-my-backyard) attitude, the conversion of housing into Air BnB and other short-term vacation rental properties.
- Clunky approval processes and land restrictions in some jurisdictions
Housing is understandably a critical part of the 2025 Canadian Federal election on April 28th. Here is what each party promises they will do to tame the crisis.
The Liberal Party
The Liberals plan to eliminate GST for first-time homebuyers on new and majorly renovated homes under $1 million.
In addition, they would create a standalone developing entity to administer the construction of affordable housing in Canada.
This entity would supply $25 billion in debt financing and $1 billion in equity financing to “innovative Canadian prefabricated home builders.”
The Liberal party intends to invest nearly $74 million to: Improve critical housing infrastructure Accelerate housing development Meet the growing demand for affordable housing in the North
$66 million would be invested to build, renovate and repair hundreds of more homes across Nunavut, including for Indigenous Peoples and under-served groups.
The Conservative Party
The Conservatives would cut the GST off of new homes selling for up to $1.3 million.
They would tie federal funding to cities to the number of housing starts. Cities or municipalities would be expected to increase the number of homes built by 15% each year.
Plus, the Conservatives would offer bonuses to municipalities that surpass that target. They plan to sell off 15% of federally owned buildings to repurpose the land to construct affordable homes.
For every dollar of development taxes cut, the Conservatives promise to match that amount to a maximum of $25,000 per home, for a total possible savings of $50,000.
An NIMBY (not in my backyard) fine would take effective against municipalities that block construction because of “egregious” opposition from local residents.
New Democratic Party
The NDP would establish a $16-billion strategy to fund the construction of affordable homes.
The housing accelerator fund would be replaced with permanent funding for two new programs: The Canadian Homes Transfer and the Communities First Fund.
The NDP is aiming to build three million affordable homes in the next five years.
They would redesign and double the Public Land Acquisition Fund, investing $1 billion over five years to build more rent-controlled homes.
They would set aside all suitable federal Crown land to build more than 100,000 rent-controlled homes by 2035. They would speed up approvals on lands owned by the federal government to build homes sooner.
They also say they would require the CMHC to offer low-interest, public-backed mortgages. The New Democrats are promising more money for the Rental Protection Fund — a federal program that supports community housing projects.
They say they would ban corporate landlords from buying existing affordable rental properties and stop providing them with low-interest federal loans and mortgage loan insurance if they gouge tenants.
The NDP would “rescue at-risk home-building projects impacted by tariffs,” with the aim of stabilizing housing markets and creating jobs in construction.
The Green Party
The Green Party wants to prevent corporations from buying single-family homes.
They would use covenants to protect the affordabilty of homes built with public money “forever” — a tricky word to use in the context of politics and promises.
Removing loopholes that enable the use of real estate for money laundering is a top priorty.
In addition, the would eliminate unfair tax advantages for real estate investment trusts (REITs).
The Greens would also push for the creation of more intergenerational co-housing complexes.
Bloc Quebecois
The Bloc wants to transfer $1.2 billion from the Canada Housing Infrastructure Fund to Quebec without conditions.
This would then be integrated to fund an existing program or dedicate it to a new initiative that they feel would better serve municipalities.
They support a GST rebate on new homes for first-time homebuyers.
The Bloc also believes in erasing GST for services, such as building inspections, that come with first-time home purchase.
The People’s Party
The PPC wants to put a hold on permanent resident acceptance until the Canadian housing crisis has balanced out.
It intends to privatize or dismantle the Canada Mortgage and Housing Corporation.
It says it wants to work with provinces to temper speculation and dismantle money laundering foreign homebuyers.
For information on how and where to vote, click here.
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