Housing affordability remains one of the most pressing concerns for Canadians, especially in major urban centres like Toronto and Vancouver. With the federal election set for April 28, 2025, all three major political parties—Liberal, Conservative, and NDP—have released proposals aimed at addressing the housing crisis. Here's a breakdown of what each party is promising and some insights into what these proposals could mean for Canadians.
Liberal Party: Doubling Down on Supply
The Liberal Party has announced an ambitious goal of building 500,000 homes per year for the next decade. This would be double the current record levels of construction. To support this plan, they’ve proposed creating a new federal agency called Build Canada Homes, which would oversee $35 billion in funding. This agency would streamline construction efforts and provide financing for developers focused on affordable housing.
Other key proposals include:
While these policies focus heavily on first-time buyers, critics argue that more attention is needed across the entire housing spectrum—from entry-level homes to larger properties—to keep the market moving fluidly.
Conservative Party: Incentivizing Builders and Investors
The Conservative platform also includes a GST waiver, but it would apply to all buyers purchasing newly built homes under $1.3 million. This broader eligibility could provide more flexibility for families looking to upsize or downsize.
Highlights from the Conservative proposal:
It’s important to note that this capital gains tax waiver would only be available through 2026, and critics point out that without aligning changes to anti-flipping rules, the intended effect on housing supply may be limited.
NDP: Protecting Renters and Expanding Public Housing
The New Democratic Party has focused its housing policy on rental affordability and tenant protections. Their platform includes expanding the role of the Canada Mortgage and Housing Corporation (CMHC) to offer long-term, low-interest mortgages for first-time buyers.
Key components of the NDP plan:
The party also wants to tie federal funding for municipalities to rent control policies and, like the Conservatives, they plan to train 100,000 new skilled trades workers to support housing development.
Expert Insights and Market Realities
Industry experts have weighed in, noting that while these proposals are well-intentioned, many focus too narrowly on first-time buyers. Canada's housing shortage affects more than just new entrants—it affects current homeowners, growing families, and seniors as well. Without enough housing options at various price points, the market remains gridlocked.
In cities like Toronto, for instance, new developments overwhelmingly feature condos or stacked townhomes. Yet many buyers are still seeking detached or semi-detached homes, which remain scarce. Without increasing the supply of these property types in high-demand areas, prices are unlikely to stabilize.
A Closer Look at the Proposed Capital Gains Rule
As Canadians prepare to head to the polls, it’s worth taking a closer look at these proposals—and considering how they align with the needs of your household and community.
Liberal Party: Doubling Down on Supply
The Liberal Party has announced an ambitious goal of building 500,000 homes per year for the next decade. This would be double the current record levels of construction. To support this plan, they’ve proposed creating a new federal agency called Build Canada Homes, which would oversee $35 billion in funding. This agency would streamline construction efforts and provide financing for developers focused on affordable housing.
Other key proposals include:
- Waiving GST on new homes priced under $1 million—but only for first-time homebuyers.
- Encouraging cities to reduce development charges, which remain under municipal jurisdiction.
- Continuing programs like the Housing Accelerator Fund, designed to push municipalities toward more housing-friendly policies.
While these policies focus heavily on first-time buyers, critics argue that more attention is needed across the entire housing spectrum—from entry-level homes to larger properties—to keep the market moving fluidly.
Conservative Party: Incentivizing Builders and Investors
The Conservative platform also includes a GST waiver, but it would apply to all buyers purchasing newly built homes under $1.3 million. This broader eligibility could provide more flexibility for families looking to upsize or downsize.
Highlights from the Conservative proposal:
- Incentives for municipalities to speed up permits, release more land, and reduce development charges.
- A focus on the skilled trades, with plans to expand training programs and create more job opportunities in construction-related fields.
- A proposal to waive capital gains tax when proceeds are reinvested in Canadian real estate. This resembles the 1031 exchange policy in the U.S., which allows investors to defer taxes by rolling profits into another property purchase.
It’s important to note that this capital gains tax waiver would only be available through 2026, and critics point out that without aligning changes to anti-flipping rules, the intended effect on housing supply may be limited.
NDP: Protecting Renters and Expanding Public Housing
The New Democratic Party has focused its housing policy on rental affordability and tenant protections. Their platform includes expanding the role of the Canada Mortgage and Housing Corporation (CMHC) to offer long-term, low-interest mortgages for first-time buyers.
Key components of the NDP plan:
- Banning corporate landlords from buying up affordable rental units.
- Withholding federal loans and tax benefits from landlords who raise rents excessively.
- Growing the Rental Protection Fund to help non-profits purchase and maintain affordable housing.
- Dedicating $1 billion over five years to acquire land for rent-controlled housing.
The party also wants to tie federal funding for municipalities to rent control policies and, like the Conservatives, they plan to train 100,000 new skilled trades workers to support housing development.
Expert Insights and Market Realities
Industry experts have weighed in, noting that while these proposals are well-intentioned, many focus too narrowly on first-time buyers. Canada's housing shortage affects more than just new entrants—it affects current homeowners, growing families, and seniors as well. Without enough housing options at various price points, the market remains gridlocked.
In cities like Toronto, for instance, new developments overwhelmingly feature condos or stacked townhomes. Yet many buyers are still seeking detached or semi-detached homes, which remain scarce. Without increasing the supply of these property types in high-demand areas, prices are unlikely to stabilize.
A Closer Look at the Proposed Capital Gains Rule
One of the more debated ideas comes from the Conservative proposal to waive capital gains tax if proceeds are reinvested in Canadian real estate. This policy, similar to the U.S. 1031 exchange, could support builders and investors—especially those looking to flip or upgrade properties.
However, there are limits:
It’s a policy that could encourage more building activity—but only if aligned with broader reforms.
Each party is promising bold action on housing, but their strategies differ in scope and focus. Whether you're a first-time buyer, a seasoned investor, or a renter, these platforms offer some insight into how each party plans to tackle one of the country’s most critical issues.
However, there are limits:
- The replacement property must be identified within 45 days.
- The transaction must be completed within 180 days.
- The deferral applies only to real estate reinvestment, not other asset classes like stocks or businesses.
It’s a policy that could encourage more building activity—but only if aligned with broader reforms.
Each party is promising bold action on housing, but their strategies differ in scope and focus. Whether you're a first-time buyer, a seasoned investor, or a renter, these platforms offer some insight into how each party plans to tackle one of the country’s most critical issues.
As Canadians prepare to head to the polls, it’s worth taking a closer look at these proposals—and considering how they align with the needs of your household and community.
