Ontario experts challenge federal political promises amid ongoing trades shortage
Ambitious federal targets to boost housing construction in Canada could fall short unless the skilled trades shortage is addressed first, according to a northern Ontario real estate agent and homebuilder.
"The Liberals want to target 500,000 new homes per year, doubling the current pace of construction," Jennifer Parsons, a real estate agent with eXp Realty Brokerage in Sault Ste. Marie, told CBC News. "Until we figure out our labour shortage and our trade shortage, I just don't see how that can happen."
Parsons, who has family members working in the trades, said their experience reflects growing pressure across multiple skilled sectors. She noted that even though housing demand remains high, builders are already struggling to find the workforce needed to meet current demand, let alone an accelerated national target.
Taylor Simard, sales manager at DeGagne Carpentry near North Bay, echoed that view.
"Even if every builder within Canada was able to output 20 more homes a year on average, you're still not going to hit the target that they want and you're going to run into a skilled trade issue at some point in time for sure," Simard said.
Simard added that costs tied to taxation and development fees continue to make new housing out of reach for many buyers, particularly those entering the market for the first time.
"If they removed taxation, period, on a new build that would definitely bring things more in line with aiding in terms of getting to where they want to be in the housing target," he said. "But I just don't see them doing that. It's too much of a [revenue] stream."
The Canadian Real Estate Association (CREA) recently reported a 9.3% drop in home sales nationally in March compared to the same time last year, with listings increasing and demand softening.
GST proposals
Both the Liberals and Conservatives have pledged to reduce the Goods and Services Tax (GST) on new home purchases, but their proposals differ. The Conservatives propose removing GST on homes priced up to $1.3 million, while the Liberals offer a GST cut for homes under $1 million, limited to first-time buyers.
Read more: Poilievre wants to outdo Carney with bigger GST cut
While Simard said most homes in northern Ontario would fall under those thresholds, he pointed out the actual savings might be less significant than expected. For a $700,000 home, the GST would be $35,000, but eligible buyers currently receive a $24,000 rebate, bringing the net savings to just $11,000 if the GST is removed altogether.
"Which again, is still great for clients and potential homeowners, but not enough to really bring housing down," Simard said.
Parsons said she sees promising elements in all major party housing platforms. She supports the NDP’s $16-billion affordable housing strategy, noting that public investment in low-income units could ease rental pressure and ultimately help rebalance the market.
"Having government-mandated or government-funded low-income housing will help some of our rental supply and eventually, you know, that goes down the funnel," Parsons said.
She also emphasized the need for accountability, regardless of which party forms the next government. Without oversight, she said, local governments may not meet their housing targets.
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