Canadian Housing Minister Proposes Tax Breaks, Increased Spending to Address Housing Shortage

Canada's Housing Minister evaluating incentives like tax breaks for builders and removing GST on affordable housing
Aims to use existing program funds more quickly, guarantee construction workforce, support factory-built homes
Housing crisis blamed on increased demand from migrants, students amid slowed construction
Q2 economic contraction largely due to lower housing investment, inventory buildup, exports, spending
Minister wants to dedicate federal lands to rental housing, consider low-cost financing for builders

reuters.com

Relevant topic timeline:

8/30/2023

Canada Feels Like a House of Cards Waiting to Collapse

Canada is facing a deep crisis due to a housing crisis, rising consumer debt, and high interest rates, which are causing unaffordability and financial vulnerability for working people, while the government's plan to address these challenges remains unclear.

9/10/2023

Housing Minister Weighs Tax Breaks, Land Use to Boost Affordable Housing Amid Economic Woes

Canada's Housing Minister Sean Fraser is exploring various options, including tax incentives for builders and low-cost financing arrangements, in an effort to alleviate the housing crisis in the country. Fraser is also considering removing the Goods and Services Tax (GST) on affordable housing projects and allocating federal lands for rental housing. The main goals are to utilize allocated funds more effectively, support the construction workforce, and boost industries like factory-built homes. Canada's housing affordability crisis is attributed to increased migration and international student population, along with rising costs and slower construction.