BNR – Canada’s Housing Minister, Sean Fraser, is actively exploring a set of measures aimed at solving the housing crisis.
“There’s a range [of incentives] that we’re considering right now,” Fraser said in an interview. “Some could include potential tax incentives for builders to build. Some could include other low-cost financing arrangements.”
Among the considered strategies, Fraser is contemplating the elimination of the Goods and Services Tax (GST) on affordable housing projects.
Additionally, he is assessing the possibility of designating federal lands for the development of rental housing, according to a report.
Efforts to Expedite Construction
The overarching objectives outlined by Fraser involve expediting the utilisation of funds previously earmarked for existing programmes.
This ensured Canada could effectively harness its construction workforce and provide support to relatively underdeveloped sectors, such as factory-built homes.
Migrants and International Students Exacerbate Housing Crisis
Canada finds itself caught in a housing affordability crisis, exacerbated by a surge in migrants and international students.
This led to heightened demand for housing, just as mounting costs have curtailed construction activities.
The unforeseen contraction of the economy in Q2 was primarily attributed to declines in housing investment and reduced inventory accumulation.
Furthermore, the diminished international exports and household expenditures also had an impact.
The urgency of addressing the housing crisis has become even more pronounced in the face of these economic challenges.