How is Each Party Addressing Affordability and Supply in the Housing Market in the 2021 Federal Elections?
Since 2000, prices have risen 160% in inflation-adjusted dollars. Meanwhile, the housing supply has grown in lockstep with new households, even as average household sizes have fallen.
During the federal election campaign, a big topic has garnered attention: high house prices and a lack of housing affordability.
Look at what each party has to offer regarding this matter.
Liberal Party of Canada
Introduce a "Home Buyer's Bill of Rights" that would include a ban on blind bidding, establishing the right to a home inspection, and ensure total transparency.
Invest $4.0 billion in a Housing Accelerator Fund to grow the annual housing supply.
Create a tax-free "First Home Savings Account" to help Canadians save for a down payment faster.
Increase funding to the National Housing Co-Investment fund by a total of $2.7 billion over four years that funds non-profit housing development.
Conservative Party of Canada
Encourage 7-to-10-year mortgage terms.
Loosen the federal mortgage stress test.
Ban on new foreign ownership for the upcoming next two years.
Build 1 million homes over three years.
Release 15% of government-owned real estate for new builds.
Incentivize developers by extending the ability to defer capital gains tax when selling a rental property and reinvesting in rental housing.
New Democratic Party
Create a 30-year mortgage term insured by the Canada Mortgage and Housing Corporation on entry-level homes for first-time homebuyers.
Maintain 1.7 million homes over the next four years
Build 500,00 affordable homes over the next ten years.
Introduce a 20% foreign buyer's tax on the sale of homes to foreign homebuyers.
This election's focus on housing affordability has excited many first-time homebuyers who have been imploring political leaders to take the pressure on young Canadians to feel serious. Canadians are questioning the credibility of whether any of these measures proposed will reduce housing prices.
Experts have noted that while foreign buyer bans can help drive down the cost of housing, in some provinces in Canada where this policy has taken place before, it hasn't solved the affordability issue, and young Canadians are still struggling.
