Liberals Win Federal Election: Explaining Their Housing Plan
Brian Kondo
Thursday, May 8, 2025
By Matt Day for REALTOR.ca
The Federal Election was just a little over a week ago (April 28, 2025), and in addition to the Tariff threat as well as making Canada the 51st State threat from the United States, one of the more important issues was Housing. Below is an article published by Realtor.ca, which is a part of the Canadian Real Estate Association (CREA). It outlines a “10-point policy blueprint” for tackling the housing shortage in Canada. You can read the article below:
Canadians have spoken and elected the Liberal Party, led by Mark Carney, in the 2025 federal election. Once again, housing affordability and supply was a pillar for all platforms in this election, with each party outlining initiatives and programs to help address Canada’s housing crisis.
In the end, the Liberals have an opportunity to implement their promises—and Canadians should be tracking their progress and holding them accountable.
The Canadian Real Estate Association (CREA) is a part of the Housing Canada Coalition and has drafted a 10-point policy blueprint “aimed at ending the housing game by building a housing safety net and fixing the housing crisis.”
The plan outlines ways to help protect Canadians from homelessness and build a resilient housing system, outlined below:
• Create an immediate housing safety net to protect Canadians from the impacts of labour market disruptions and an economic downturn.
• Protect renters from falling into homelessness.
• Double the share of community housing, including affordable home ownership.
• Ensure access to the land and infrastructure needed to build.
• Create resilient housing material supply chains that can withstand tariffs and trade barriers.
• Develop a housing skills agenda that equips Canada’s workforce.
• Reform taxes to facilitate home building.
• Streamline permissions to accelerate home building.
• Accelerate innovation to more quickly build less expensive and better homes.
• Rapidly expand Indigenous urban, rural, and northern housing to meet the housing needs of First Nations, Inuit, and Métis Peoples and communities.
The Liberal Party’s Housing Plan
Self-described as “the most ambitious housing plan since the Second World War,” the Liberals are focusing on creating more supply to help ease the housing crisis. Their plan is to double the current pace of construction, achieving nearly 500,000 new homes built each year for 10 years.
Below, we’ll break down the three main pillars of their Building Canada Strong housing plan that would make this possible.
Getting the Government Back in the Business of Building
Carney has said the federal government needs to act as a developer to build affordable housing at scale.
A newly created Build Canada Homes (BCH) entity is to have three key functions:
• build affordable homes at scale;
• catalyze a new housing industry
• provide financing to affordable homebuilders.
The BCH includes opening federally owned public lands to build homes first-time buyers can afford. Carney’s plan outlines how the Liberals will create higher-paying jobs by providing $25 billion in debt financing and $1 billion in equity financing to innovative prefabricated home building companies that use Canadian technologies and resources.
Prefabricated and modular homes can reduce construction times by up to 50% and costs up to 20%, according to the Liberal plan. Learn more about these types of homes.
The BCH will provide $10 billion in low-cost financing and capital to affordable home builders, including funds earmarked for supportive housing, Indigenous housing, shelters, student, and seniors’ housing.
To help speed up the process of building these homes, Carney previously unveiled details of pre-approved, standardized housing designs that can be used across all public lands.
Cutting Red Tape for Builders
The Liberal plan includes methods to catalyze private capital, reduce wait times and lower the cost of building homes. This includes cutting municipal development charges by 50% for multi-unit residential housing.
Carney said he wants to reintroduce a tax incentive, first done in the 1970s, to help spur more rental housing units. Known as the Multiple Unit Rental Building cost allowance, it helped produce almost 200,000 homes from 1974 to 1981.
Existing structures can more easily be converted into affordable housing units, under the Liberal plan, after they reduce the tax liability for private owners of multi-purpose rentals who sell their property to a non-profit operator or fund, or land trust.
Tax Cut on New Builds
One of the early headline-grabbing initiatives from the Liberals is the announcement of a tax cut on new builds for first-time home buyers. This would apply for all new builds valued at or under $1 million. Carney has stated this tax cut will save these buyers up to $50,000.
What’s Next Following the Election?
Now that we know what political party has been elected, it’s our job—home buyers, sellers, owners, investors and REALTORS®—to make sure promises are kept. The Liberal plan addresses many points outlined by the Housing Canada Coalition. It will take all levels of government and support from Canadians to fix the housing crisis.
Feel free to save this article as a reference to track the progress made on housing related-issues.
If you have any questions about this article, or you are trying to buy in this market, or you would like to know what your home is worth at this time, please reach out by calling me at 905-683-7800.
Thanks for reading today’s BLOG!!!
If you would like to see any of my previous blog posts, please click here.
Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com
Matt Day's article was initially published on Realtor.ca. You can find it by clicking here.
| REALTOR.ca is the most popular and most trusted real estate website in Canada. Owned and operated by the Canadian Real Estate Association (CREA), REALTOR.ca provides up-to-date and reliable information that makes finding your dream property easy and enjoyable. REALTOR.ca is popular with sellers, buyers, and renters and is accessible online and on mobile devices. |
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Matt Day |
About the Author Matt Day brings his experience as a nationally-recognized multimedia journalist to the Canadian Real Estate Association as a Communications Advisor. Matt provides professional writing, digital media and communications support to CREA and assists in developing engaging social media content. He is regularly featured in the CREA Café where he provides interesting and entertaining content for REALTORS® to enjoy. In his spare time, you can find him riding bikes or playing guitar. |
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