Canada is approaching a pivotal federal election on April 28, 2025, which is anticipated to significantly influence the nation’s housing market. The election follows Prime Minister Justin Trudeau’s unexpected resignation earlier this year, leading to a leadership contest within the Liberal Party and setting the stage for a closely watched electoral battle.

Political Landscape and Housing Policies

The housing affordability crisis has been a central issue in Canadian politics, with all major parties proposing distinct strategies to address it.​

• Conservative Party of Canada (CPC): Led by Pierre Poilievre, the CPC has proposed several measures to tackle housing affordability:
  • Tax Incentives: Eliminating the 5% Goods and Services Tax (GST) on new homes priced under $1 million, potentially saving buyers up to $50,000.​
  • Capital Gains Tax Rollback: Reversing recent increases to capital gains taxes, which affect profits from the sale of secondary properties.​
  • Increased Homebuilding: Introducing the “Building Homes Not Bureaucracy Act,” aiming to boost home construction by 15% annually in major cities, with financial incentives for municipalities that meet targets and penalties for those that don’t. ​
• Liberal Party of Canada: In April 2024, prior to Trudeau’s resignation, the Liberal government unveiled “Canada’s Housing Plan,” aiming to unlock 3.87 million new homes by 2031. Key components include:
  • Public Lands for Homes: Utilizing federal, provincial, and municipal lands for affordable housing projects.​
  • Financial Support: Allocating $15 billion in additional loans for the Apartment Construction Loan Program to build at least 30,000 new rental apartments
  • Support for Indigenous Communities: Investing in housing for Indigenous Peoples in urban, rural, and northern areas.
• New Democratic Party (NDP): Under Jagmeet Singh, the NDP has focused on renter protections and affordable housing construction:
  • Corporate Ownership Ban: Proposing a ban on corporate ownership of affordable housing to prevent profiteering.​
  • Renoviction Moratorium: Seeking to establish a nationwide ban on “renovictions,” where tenants are evicted under the pretense of renovations.​
  • GST Removal: Eliminating GST on the construction of affordable rental units. ​

Immigration Policy and Housing Demand

In response to critiques over housing affordability, the Liberal government announced a reduction in immigration targets, lowering the number of new permanent residents from 500,000 to 395,000 in 2025, with further decreases planned through 2027. Experts suggest this policy shift could soon impact the housing market by alleviating some demand pressures, particularly in rental markets.

Economic Context

Despite anticipated interest rate cuts by the Bank of Canada, the housing affordability crisis is expected to persist due to high home prices and limited purchasing power among Canadians. Economists warn that it may take a decade to restore housing affordability, necessitating significant decreases in both home prices and mortgage interest rates.

Conclusion

The upcoming federal election presents Canadian voters with distinct choices on how to address the housing affordability crisis. The outcome will shape the nation’s housing policies and market dynamics for years to come, influencing affordability, availability, and the overall economic well-being of Canadians.​