On November 21, the Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance, delivered the federal government’s Fall Economic Statement, which included several new housing announcements and additional funding.

For rental housing builders, the most significant announcement is an “… additional $15 billion in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program, formerly known as the Rental Construction Financing Initiative, for a total of more than $40 billion in loan funding.” The federal government estimates that this will help deliver an additional 30,000 new rental housing units.

The federal government will also be taking steps to improve the shortage of construction workers, further to the prioritization of permanent residency through a new selection process under the Express Entry system that was announced in May. In the coming months, the government will be taking steps “… to remove barriers to internal labour mobility, including by leveraging federal transfers, and other funding, to encourage provinces and territories to cut the red tape that impedes the movement of workers, particularly in construction, health care and child care …,” as they seek “… full interprovincial labour mobility for…,” these sectors. This includes utilizing the red seal program to eliminate duplicative credential recognition for skilled trades.

Other measures in the Fall Economic Statement include:

1. An additional $1 billion for the Affordable Housing Fund to “… support non-profit, co-op, and public housing providers to build more than 7,000 new homes by 2028;”
2. Removing the GST for new co-op rental housing projects that provide long-term rental accommodation, and investing “… $309.3 million in new funding for the Co-operative Housing Development Program;”
3. Exploring further measures to speed up the repurposing of more Federal lands for housing projects;
4. Denying “… income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements,” as well as providing $50 million over three years “… to support municipal enforcement restrictions on short-term rentals;” and
5. Introducing a Canadian Mortgage Charter to protect mortgage holders when they renew their mortgages.