By Jeremy Davis
In late March, the Government of Canada made an announcement of $1.7 billion for provincial and territorial governments to find ways to increase housing supply. The federal legislation that will carry this funding is titled Bill C-26 which would create immediate, time-limited funding with provinces who agree to partner with the federal government on boosting housing supply.
By the letter of legislation in Canada, provincial governments have the biggest role to play in housing efforts, and traditionally, federal governments have played the role of funder. This announcement follows in this tradition by making funding available for provinces and territories across the country to implement measures such as decreasing development fees and charges on new home construction, or to complement existing programs used to incentivize and create more housing supply.
This announcement is in addition to previous requirements aimed at provincial and territorial governments to reduce development fees and charges on homebuilding in order to access funding through the federal Build Communities Strong Fund. In a press release announcing the funding, the federal government also indicated that this money could be used to “support the efforts of provinces and territories to deliver on improving internal trade by harmonizing regulations and increasing productivity in the home construction sector”.
The Ontario Government was also party to this announcement and indicated their intention to fully remove their HST for all buyers of newly built homes in Ontario for one full year. This is in addition to the federal government’s removal of GST on new builds for first-time homebuyers up to $1 million which just passed Royal Assent into law at the end of March and could save up to $50,000 on a new home. This partnership set a great example for other provinces across the nation — one we hope will have a cascading effect.
The Winnipeg Regional Real Estate Board’s counterparts at the Canadian Real Estate Association (CREA) had this to say in reaction to this funding announcement by the Canadian and Ontario Governments:
“CREA welcomes the proposed $1.7 billion funding package which, if passed, would provide an immediate, time-limited funding boost via housing transfers to provinces and territories willing to partner on improving housing supply. This is an investment that will help kickstart development and protect essential jobs in the homebuilding sector during a period of global uncertainty.
“REALTORS® are encouraged by the collaborative spirit and balanced approach behind this announcement, with the Ontario Government coming to the table in partnership with the federal government to fully remove the HST for all buyers of newly built homes in Ontario for one year. A time-limited removal of the GST/HST from all new builds is exactly the kind of targeted measure REALTORS® called for in our 2025 pre-budget submission, and allows government to assess the effect on supply while also immediately reducing costs for buyers and helping free up existing housing stock for families.
“The federal government has indicated the next step is buy-in and partnership commitments from every province and territory. CREA looks forward to working with our provincial/territorial associations to help move those conversations forward with a shared goal of increasing housing supply across the country.”
This comes at a time when Canadian real estate boards and associations from across the nation are advocating to federal Members of Parliament on the creation of a new National Housing Strategy to align federal policy with regional needs and create a coordinated, national approach that restores balance, supports diverse housing choices, and advances a healthy, functional, and sustainable housing market for all.
For many years, governments have emphasized increasing the number of housing units without adequately considering whether those homes align with the needs of Canadian households. While solely boosting supply can provide short-term relief, a lasting solution will require a more thoughtful and strategic approach, one that hopefully prioritizes ‘missing middle homes’ which can help the needs of growing families or aging residents.
Through recent polling, we know that the gross majority of non-homeowners between the ages of 18 and 44 want to become homeowners and it is critically important to ensure that opportunity comes to fruition. Beyond being a historically strong investment, homeownership can provide potential benefits such as improved mental well-being, increased stability and a stronger sense of belonging within a community.
That’s why you can count on REALTORS® to continue advocating for solutions that create meaningful progress for Canadians who want to own a home.
Jeremy Davis is the Winnipeg Regional Real Estate Board’s Director of External Relations & Market Intelligence.