Canada Housing Crisis 2025: How Election Policies Could Impact the Market

Canada's 2025 federal election, scheduled for April 28, has placed the country's housing crisis squarely at the centre of political debate. With affordability pressures mounting, each major party is presenting distinct solutions to address this critical issue.

At Seventy Seven Park, we believe staying informed is crucial for homeowners, buyers, investors, and industry stakeholders.

How Each Party’s Policies Aim to Solve the Canada Housing Crisis 2025

Liberal Party: Government-Led Solutions for Housing

Under Prime Minister Mark Carney, the Liberals are advocating for robust government-led initiatives:

• Affordable Housing at Scale: A commitment of over C$25 billion in financing for prefabricated and innovative housing projects, including significant development on public lands.

• First-Time Buyer Incentives: Elimination of the Goods and Services Tax (GST) on first-time purchases of homes priced up to C$1 million, potentially saving buyers up to C$50,000.

• Municipal Partnerships: Plans to halve municipal development charges on multi-unit residential buildings, incentivizing increased urban density.

• Economic and Trade Infrastructure: Introduction of a C$5 billion Trade Diversification Corridor Fund aimed at infrastructure projects to stimulate job creation and economic resilience amidst global trade tensions.

(Source: Reuters, AP News)

Conservative Party: Boosting Housing Through Market Dynamics

Led by Pierre Poilievre, the Conservatives focus on market-driven reforms:

• Tax Relief for Homebuyers: Removing federal sales taxes on new homes under C$1.3 million, offering substantial savings up to C$65,000.

• Municipal Incentives: Encouraging municipalities to reduce building taxes and development fees, aiming for total homeowner savings approaching C$100,000 in key metropolitan regions.

• Streamlined Regulatory Environment: Creation of a rapid resource project office to expedite housing project approvals, reducing bureaucratic delays.

• National Energy Corridor: Developing a corridor to accelerate essential infrastructure, indirectly promoting housing accessibility and market stability.

(Source: Reuters)

New Democratic Party (NDP): Prioritizing Affordability and Tenant Protections

Jagmeet Singh and the NDP highlight affordability and tenant protections as their primary housing concerns:

• Public Housing Investment: Aggressive support for the construction and financing of affordable public housing.

• Rent Control and Tenant Rights: Commitment to national rent control measures and policies enhancing tenant security.

• Sustainable Retrofitting Initiatives: Extensive retrofitting programs aimed at increasing energy efficiency and lowering housing costs for residents.

Strategic Considerations for the Market

• Policy-Driven Market Shifts: The election outcome will significantly influence market trends, investment strategies, and housing affordability.

• Regional Market Dynamics: Critical electoral regions like Ontario's Golden Horseshoe and Quebec's Trois-Rivières could shape the national housing agenda.

• External Economic Influences: Escalating U.S. trade tensions under President Trump heighten the importance of resilient domestic housing policies.

The Path Forward

As the 2025 election approaches, housing remains a decisive issue for voters and stakeholders alike. The variety of proposed solutions highlights the complexity of Canada's housing challenge and underscores the importance of informed, strategic decision-making.

At Seventy Seven Park, we remain dedicated to navigating these market developments strategically. Subscribe to our newsletter for continued insights, and contact our team to discuss how these evolving policies could impact your real estate and financial planning decisions.

Stay informed. Stay strategic.

Stay ahead with Seventy Seven Park.