Comparing Canada’s Housing Platforms: Liberal Government, Conservative Party, and the NDP

The housing crisis in Canada has become a critical issue, impacting Canadians from all walks of life. Skyrocketing home prices and rents have made finding affordable housing a challenge for many.

In response, Canada’s major political parties—the incumbent Liberal government, the Conservative Party led by Pierre Poilievre, and the New Democratic Party (NDP)—have each proposed comprehensive plans to address this crisis.

This blog post compares these three housing platforms, highlighting their key proposals, similarities, differences, and the feasibility of their approaches.

Background: Understanding the Housing Crisis

Before delving into the specific plans, it’s important to grasp the context of Canada’s housing crisis:

• Affordability Issues: Home prices and rents have increased significantly, making housing unaffordable for many Canadians, including young people, families, and seniors.
• Supply Shortage: A common thread among all parties is the acknowledgment that Canada is not building enough homes to meet the growing demand.
• Impact on Canadians: Many households spend over 30% of their income on housing, leading to financial strain and tough choices between essential needs.

1. The Liberal Government’s Housing Plan

Key Proposals

The Liberal government’s housing plan focuses on three main pillars:

A. Building More Homes

• • Accelerated Capital Cost Allowance for Apartments: Temporarily increasing the rate from 4% to 10% to incentivize developers by improving after-tax returns.
  • Removing GST on New Rental Housing: Eliminating the Goods and Services Tax (GST) on new rental apartment projects, including student residences, to reduce construction costs.
  • Increasing Canada Mortgage Bonds Limit: Raising the limit from $40 billion to $60 billion to provide more low-cost financing for rental housing developers.
  • Apartment Construction Loan Program: Allocating an additional $15 billion in loans to support at least 30,000 new rental apartments.
  • Canada Builds Initiative: Partnering with provinces and territories to scale up construction of rental homes for the middle class.
  • Public Lands for Homes Plan: Unlocking surplus and underutilized public lands for housing development.

B. Making It Easier to Rent or Own a Home

• • Tenant Protection Fund: Introducing a $15-million fund to support legal services and advocacy organizations for renters.
  • Canadian Renters’ Bill of Rights: Developing a national framework to protect renters, including measures against unfair rent increases and evictions.
  • Extended Mortgage Amortizations: Allowing first-time homebuyers purchasing newly built homes to access 30-year mortgage amortizations.
  • Tax-Free First Home Savings Account: Allowing Canadians to contribute up to $40,000 tax-free toward their first home’s down payment.
  • Increasing Home Buyers’ Plan Limit: Raising the withdrawal limit from $35,000 to $60,000 from Registered Retirement Savings Plans (RRSPs).

C. Helping Canadians Who Can’t Afford a Home

• • Affordable Housing Fund: Providing an additional $1 billion, totalling over $14 billion, to support the construction and repair of affordable housing.
  • Co-operative Housing Development Program: Investing $1.5 billion to develop new co-operative housing units.
  • Reaching Home Program: Proposing an additional $1 billion over four years to prevent and reduce homelessness.
  • Combating Real Estate Fraud: Implementing measures to prevent mortgage and real estate fraud and combat money laundering.

2. The Conservative Party’s “Build Homes, Not Bureaucracy” Plan

Key Proposals

Pierre Poilievre’s Conservative plan centers on increasing the housing supply by removing bureaucratic barriers and holding municipalities accountable:

A. Increasing Housing Supply and Accountability

• • Building Homes Not Bureaucracy Act: Introducing legislation to set housing targets for big cities and enforce them through financial incentives and penalties.
  • •Housing Targets: Requiring cities to increase the number of homes built by 15% each year, compounded annually.
  • •Financial Penalties: Withholding federal funding proportional to the percentage by which a city misses its housing targets.
  • •Financial Rewards: Providing bonuses to cities that exceed housing targets.

B. Removing Gatekeepers and Red Tape

• • NIMBY Penalty: Imposing penalties on cities for egregious cases of “Not In My Backyard” (NIMBY) behavior that blocks housing projects.
  • Transit Funding Conditions: Withholding transit and infrastructure funding from cities until sufficient high-density housing around transit stations is built and occupied.
  • CMHC Reforms: Cutting bonuses and salaries at the Canada Mortgage and Housing Corporation (CMHC) if they fail to speed up approval processes.

C. Utilizing Federal Land

• • Repurposing Federal Buildings and Land: Listing 15% of the federal government’s buildings and appropriate land to be converted into affordable housing within a year and a half of the legislation passing.

D. Removing Taxes on Affordable Housing Construction

• • Removing GST on Affordable Rentals: Eliminating the GST on building new homes with rental prices below market value.

3. The NDP’s National Housing Plan

Key Proposals

The NDP’s housing plan focuses on making life more affordable by ensuring everyone has access to safe and affordable housing:

A. Building Affordable Housing Units

• • Building 500,000 Affordable Units: Creating at least 500,000 units of quality, affordable housing over the next ten years, with half completed within five years.
  • Fast-Start Funds: Setting up dedicated funds to streamline application processes and assist communities in initiating projects quickly.
  • Mobilizing Federal Resources and Lands: Using unused and under-used federal properties for new housing developments.
  • Waiving GST/HST on Affordable Rentals: Removing the federal portion of the GST/HST on the construction of new affordable rental units.

B. Immediate Relief for Renters

• • Rental Support: Providing immediate assistance to families struggling to afford rent, especially during the COVID-19 pandemic.

C. Facilitating Homeownership

• • Reintroducing 30-Year CMHC Mortgages: Allowing first-time homebuyers to access 30-year insured mortgages on entry-level homes.
  • Doubling the Home Buyer’s Tax Credit: Increasing the tax credit to $1,500 to help with closing costs.
  • Supporting Co-Housing: Providing resources and CMHC-backed mortgages for co-housing models.

D. Tackling Speculation and Money Laundering

• • Implementing a 20% Foreign Buyer’s Tax: Taxing home sales to non-residents to curb speculation.
  • Public Beneficial Ownership Registry: Creating a registry to increase transparency about property ownership.
  • Reporting Suspicious Transactions: Requiring reporting to help detect and stop money laundering.

Comparative Analysis – Similarities Among the Plans

1. Increasing Housing Supply: All three plans prioritize boosting housing construction to address the supply shortage.
2. Utilizing Federal Land: Both the Liberals and Conservatives propose repurposing federal land and buildings for housing development.
3. Removing Taxes on Affordable Housing Construction: All parties suggest eliminating the GST on new affordable rental housing to lower construction costs.
4. Facilitating Homeownership: Both the Liberals and NDP propose extending mortgage amortizations to 30 years for first-time buyers and increasing tax incentives to help with down payments and closing costs.
5. Addressing Speculation and Foreign Buyers: The Liberals and NDP aim to curb foreign investment in residential real estate through bans or taxes, while the Conservatives focus on increasing supply to make speculation less impactful.

Differences in Approaches

1. Municipal Engagement

• Liberals: Use incentives and collaboration, offering funding to municipalities that reform zoning and expedite housing projects.
• Conservatives: Employ a more directive approach, setting mandatory housing targets and imposing financial penalties for non-compliance.
• NDP: Focus on partnering with provinces and municipalities to build affordable housing, without emphasizing penalties.

2. Addressing Gatekeepers

• Liberals: Work with municipalities to streamline approval processes.
• Conservatives: Penalize gatekeepers by withholding funding and cutting CMHC staff bonuses if they fail to expedite processes.
• NDP: Do not specifically address gatekeepers but aim to simplify processes through fast-start funds.

3. Scale and Targets

• Liberals: Provide significant funding but do not specify a target number of units.
• Conservatives: Focus on increasing housing supply by specific percentages annually but do not set a total unit target.
• NDP: Set a clear target of 500,000 affordable housing units over ten years.

4. Immediate Relief Measures

Liberals: Offer some immediate measures like the Tax-Free First Home Savings Account.

Conservatives: Focus on systemic changes rather than immediate relief.

NDP: Provide immediate relief for renters struggling with affordability.

5. Combating Money Laundering and Fraud

• Liberals: Implement measures to combat real estate fraud and tax evasion.
• Conservatives: Do not specifically address money laundering.
• NDP: Propose creating a public registry to increase transparency and combat money laundering.

Feasibility Analysis

Legal and Constitutional Considerations

• Federal Authority Over Municipalities: The Conservatives’ plan to mandate housing targets and penalize municipalities may face legal challenges, as municipalities are under provincial jurisdiction.
• Collaborative Approaches: The Liberals and NDP, focusing on incentives and partnerships, may encounter fewer legal obstacles.

Economic and Market Factors

• Construction Capacity: All plans require a significant increase in construction activity, which may be constrained by labour shortages and material costs.
• Impact on Housing Prices: Increasing supply should help stabilize or reduce housing prices, but the effect may vary based on implementation speed and market dynamics.

Funding and Resources

• Liberals: Propose significant funding through various programs, leveraging existing structures.
• Conservatives: Aim to fund initiatives by reallocating existing funds and cutting costs, such as CMHC bonuses.
• NDP: Require substantial federal investment to build 500,000 units, which may necessitate increased taxes or reallocation from other areas.

Political Will and Public Support

• Liberals: Emphasize collaboration, which may be more acceptable to provinces and municipalities.
• Conservatives: Their enforcement approach may face resistance from municipalities and provinces.
• NDP: Focus on affordability and immediate relief, which may garner public support but could face opposition due to funding requirements.

Conclusion

The housing crisis in Canada is a multifaceted issue that demands comprehensive solutions.

Each party offers distinct approaches:

Liberal Government: Proposes a collaborative and incentive-based plan, focusing on increasing supply through funding, tax incentives, and partnerships with municipalities and provinces.

Conservative Party: Advocates for a more aggressive approach, setting mandatory housing targets for municipalities, enforcing compliance through financial penalties, and removing bureaucratic barriers.

NDP: Emphasizes affordability and immediate relief, setting clear targets for building affordable housing units, and addressing issues like speculation and money laundering.

Feasibility Considerations:

• The success of any plan depends on effective implementation, intergovernmental cooperation, sufficient funding, and market conditions.
• Legal challenges may arise, especially concerning federal authority over municipalities.
• The capacity of the construction industry and the availability of resources are critical factors.

Key Takeaways for Canadians

• Shared Goals: All parties recognize the urgency of the housing crisis and the need to increase housing supply and affordability.
• Different Strategies: The approaches vary significantly, from the Liberals’ collaborative incentives, the Conservatives’ enforcement and penalties, to the NDP’s focus on affordability and immediate action.
• Considerations for Voters: Understanding each plan’s specifics, feasibility, and potential impact can help Canadians make informed decisions based on their priorities and values.

Final Thoughts

Addressing Canada’s housing crisis is a complex challenge that requires coordinated efforts across all levels of government and the private sector. While there are similarities in the recognition of the problem and some proposed solutions, the differences lie in the methods and emphasis each party places on various aspects of the issue. By analyzing and comparing these housing platforms, Canadians can better understand how each party intends to tackle one of the most pressing issues facing the country today.

Stay Informed

We encourage readers to delve deeper into each party’s platform and consider the implications of their proposals. The housing crisis affects everyone, and informed engagement is crucial for driving meaningful change.

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