Trudeau government says the goal is to increase housing supply
Speaking in British Columbia earlier this week, Prime Minister Justin Trudeau highlighted new measures in the federal budget aimed at increasing the supply of affordable housing.
While affordable housing is a major issue for many Canadians, it is a bigger concern in British Columbia. The province is currently in the midst of a tight housing market, with a recent study showing that the average monthly mortgage payment for a median-priced single-family home in the Vancouver CMA was approximately 101.5% of the region’s average household income level.
To help ensure British Columbians have the housing they need, the 2019 budget proposes support for the Expert Panel on the Future of Housing Supply and Affordability. The Expert Panel – a joint initiative of the government of Canada and the province of British Columbia – will examine trends in rental and homeownership. It will consult with stakeholders to provide advice on new approaches to better meet the future housing needs of B.C.
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With this year's budget, the federal government is also expanding the Rental Construction Financing Initiative to build more rental units in communities across Canada, with the goal of keeping rental prices stable and competitive, as well provide more affordable rental options. Budget 2019 also proposes a Housing Supply Challenge, which would invite municipalities and other organizations to come up with innovative solutions to help get more new housing built.
The government is also modernizing the Home Buyer's Plan by increasing the amount that first-time home buyers can withdraw from their Registered Retirement Savings Plan without adding to their income for the year.
"Too many Canadian families are being priced out of buying or renting where they live, because there are not enough homes to keep up with the demand,” said Trudeau.
“Safe, affordable homes give Canadian families the stability and opportunities they need to thrive in their communities. Our government is taking action to increase the housing supply in communities across the country, make housing more affordable for more Canadians, and make sure our cities remain great places to live, now and into the future."
