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On April 16, 2024, Canada’s Deputy Prime Minister and Finance Minister Chrystia Freeland unveiled the 2024 Federal Budget in the House of Commons. This budget, proposing $52.9 billion in new spending over five years, including $8.5 billion for housing, signifies a pivotal moment in Canada’s housing policy. It introduces a range of innovative measures aimed at addressing the pressing issues of housing affordability and availability, reflecting a comprehensive and multi-faceted approach to tackling the economic and housing challenges faced by Canadians.
| Did you know? The 2024 Budget and Canada’s Housing Plan outline the government’s plan to make 3.87 million new homes available by 2031. This includes at least 2 million additional new homes in addition to the 1.87 million homes that are already anticipated to be constructed by 2031. |
Tenant Empowerment
The Canadian Renters’ Bill of Rights and the Tenant Protection Fund are significant strides towards tenant empowerment in Canada. The Bill of Rights is a groundbreaking policy designed to shield tenants from unjust practices, making sure that their rights are respected and upheld. It serves as a beacon of hope for renters, promising them protection and justice. On the other hand, the Tenant Protection Fund, with its substantial allocation of $50 million, provides crucial legal assistance to tenants confronted with eviction or other housing-related legal challenges. This fund is a testament to Canada’s commitment to safeguarding the rights of its renters, providing them with the necessary resources to defend their rights and maintain their housing security. Together, these initiatives represent a robust framework for tenant protection, demonstrating Canada’s dedication to fostering a fair and equitable housing market.
Budget 2024 also indicates the government’s initiative to encourage banks, fintechs, and credit bureaus to fast-track the development of tools that allow renters to report their rent payments, thereby improving their credit scores and easing their transition to homeownership.
| Did you know? Today, a higher percentage of Gen Z and Millennials are renting compared to previous generations. Over 54% of individuals aged 25-34 and a staggering 81% of those under 24 are renters. In contrast, only 25% of Canadians aged 55-64 are currently renting. |
Boosting Housing Construction
The Canada Builds initiative, the Housing Accelerator Fund, and the Canada Housing Infrastructure Fund are pivotal components of Canada’s strategy to boost housing construction. The Canada Builds initiative, with its substantial investment of $4 billion, is focused on the construction of rental accommodations, aiming to augment the supply of affordable homes. This initiative is a testament to Canada’s commitment to making housing more accessible for its citizens. In addition, the Housing Accelerator Fund and the Canada Housing Infrastructure Fund have been bolstered with significant funding of $2.5 billion and $1.5 billion, respectively. These funds are designed to support housing development, further contributing to the increase in affordable housing options. Together, these initiatives underscore Canada’s dedication to addressing housing challenges and ensuring that every citizen has access to affordable and quality housing.
Promoting Home Ownership
Canada is prioritizing the promotion of home ownership through several key initiatives. First-time buyers of new homes are set to benefit from extended mortgage amortizations of up to 30 years, a move that will make home ownership more accessible by reducing monthly payments. Additionally, the introduction of the Canadian Mortgage Charter aims to enhance the mortgage application process and improve credit scores, backed by a significant investment of $1 billion. This charter represents a commitment to making homeownership a more attainable goal for Canadians by providing them with the necessary financial tools and resources. These initiatives collectively demonstrate Canada’s dedication to promoting home ownership and supporting its citizens in their journey toward securing their own homes.
| Did you know? In 2023, Vancouver had the least affordable housing in Canada, while Edmonton had the most affordable. During the third quarter of the year, the cost of homeownership was 62.5 percent. However, in Vancouver, this ratio was significantly higher at 102.6 percent. |
Utilizing Public Land
The utilization of public land is a key strategy in Canada’s approach to addressing housing challenges. The federal government has unveiled plans to lease public land to builders for a nominal fee of $1, a move that will stimulate the construction sector and facilitate the creation of more housing units. In addition, the government is set to convert federal office spaces into 65,000 units of housing, effectively repurposing existing structures to meet the growing demand for homes. These initiatives highlight the innovative ways in which public resources are being leveraged to address housing shortages and affordability issues, demonstrating Canada’s commitment to finding sustainable solutions to these pressing challenges.
| Did you know? Since 2016, the Canada Lands Company has overseen the development of over 10,300 new homes on underutilized federal land, including 1,100 affordable ones. Their goal for the next five years is to enable the construction of over 29,200 new homes, with at least 20% being affordable units. |
Workforce Development
Workforce development is a critical aspect of Canada’s housing strategy. The federal government has committed a substantial $250 million to apprenticeship and skilled-trade programs, specifically designed to bolster the construction industry. This investment is aimed at cultivating a skilled workforce capable of meeting the demands of the rapidly growing construction sector. By investing in the training and development of its workforce, the government is not only creating job opportunities but also ensuring the availability of skilled labour necessary for the expansion of housing construction. This initiative underscores Canada’s commitment to fostering a robust and skilled construction industry, which is integral to its broader housing objectives.
Conclusion
The 2024 federal budget presents a transformative vision for the Canadian real estate market, with the introduction of several new housing policies. These initiatives, backed by billions of dollars in investment, are meant to significantly reshape the housing landscape in Canada. From empowering tenants and boosting housing construction, to promoting home ownership, utilizing public land, and developing the workforce, these policies collectively represent a thorough strategy to address the complex issues of housing affordability and availability. As these policies are implemented, they hold the potential to bring about substantial changes in the real estate market, making housing more accessible and affordable for all Canadians.
