Both major parties offer competing housing strategies as April 28 vote nears
With just weeks to go before Canadians head to the polls on April 28, housing policy and taxation are quickly emerging as defining issues in a snap federal election shaped by economic tension and affordability concerns.
The vote comes just weeks after Prime Minister Mark Carney took over as Liberal Party leader from Justin Trudeau. A former central bank governor and one-time chairman of Brookfield Asset Management, Carney has wasted no time placing housing and taxation issues at the heart of his platform.
“We are facing the most significant crisis of our lifetimes because of President Trump’s unjustified trade actions and his threats to our sovereignty,” Carney said Sunday, after requesting the election from Canada’s governor general. “President Trump claims that Canada isn’t a real country. He wants to break us so America can own us. We will not let that happen.”
Carney is expected to face Conservative Party leader Pierre Poilievre, who has long targeted the Liberal government’s record on housing. Though the Conservatives were once expected to cruise to victory, Carney’s leadership win has re-energized the Liberal base, and recent polling suggests the race is tightening.
Housing in focus
Carney’s platform includes several key housing proposals, notably the elimination of the Goods and Services Tax (GST) for first-time homebuyers purchasing properties under $1 million. The Canadian Home Builders’ Association (CHBA) welcomed the move, saying it could help stimulate supply and make homeownership more accessible in the face of rising costs.
“We are pleased that two major federal parties have made substantial promises regarding GST on new homes,” said Kevin Lee, CHBA CEO. “In light of the tariff war with the United States, it is doubly important that all avenues to improve housing affordability for Canadians are explored. Addressing the GST on new housing is certainly a step in the right direction.”
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The GST policy is one area where Carney and Poilievre share common ground. The Conservatives have also proposed removing the tax on new homes under $1 million, reflecting the political pressure to ease housing costs amid a market where the national benchmark price exceeds $700,000, even after recent corrections.
Where the two leaders differ sharply is on capital gains. The Liberals, under Trudeau, supported a plan—backed by the New Democrats—to raise the capital gains inclusion rate from 50% to two-thirds. Although the change was delayed, Carney has pledged to cancel the proposal entirely, citing concerns from vendors who rushed to sell ahead of its original implementation date.
The Canadian Real Estate Association (CREA) reported that existing home sales have stalled since Trump’s election triggered tariff uncertainty. New housing construction is also slowing, compounding an already tight supply environment.
“The next government must prioritize addressing the supply crisis, which affects millions of Canadians seeking affordable shelter and stability for their families,” said Phil Soper, CEO of Royal LePage.
Soper is calling on federal leaders to expand loan amortizations, raise the cap on mortgage insurance, and remove the stress test for current homeowners switching lenders, measures he says would improve affordability and competition.
Both major parties have promised large-scale investments in home construction.
Carney has pledged to build 4 million new homes by 2035 and maintain the Liberal housing accelerator fund, which provides funding to municipalities to speed up project approvals.
Poilievre, who once led the polls with his “Canada is broken” slogan, now campaigns under a “Canada First” banner. He has promised to “unleash the biggest homebuilding boom ever,” though he would scrap the accelerator fund in favour of expanding skilled trades programs and apprenticeship incentives.
Poilievre has also blamed Liberal housing policies for locking Canadians out of the market. His housing message helped boost Conservative popularity in 2023 and 2024, as home prices remained out of reach for many Canadians.
Even after a market correction, an index of national home prices is still up 72% over the past decade, and high population growth continues to fuel strong housing demand. Yet supply isn’t keeping up, and some pockets of the market, like Toronto’s condo sector, remain weak.
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