Home Buyers were front and center in the federal government’s recent Budget 2024, which has unveiled measures aimed at bringing balance back to the Housing market.
Easing Builder Burdens
The budget introduces several initiatives to alleviate constraints faced by builders, including recruiting and training new tradespeople, streamlining approval processes, and making more public land available for development. However, challenges such as exorbitant development fees and slow approval processes still exist.
Increasing Housing Density
Proposals in the budget aim to boost housing density across Canada by launching infrastructure funds, tying infrastructure funds to zoning laws, taxing vacant land, and supporting innovative designs. Encouraging new zoning laws could counteract resistance to densification, a significant barrier to development.
Helping First-Time Home Buyers
The budget addresses affordability by extending mortgage amortization periods, increasing RRSP withdrawal limits, and considering rent payment history in mortgage assessments. While these measures aim to enhance buying power, they also carry risks and may exacerbate supply shortages.
De-Commodifying Housing
To tackle housing speculation, the budget proposes restrictions on large corporate investors purchasing single-family homes and removes tax deductions for non compliant short-term rentals. While these measures aim to shift attitudes, challenges remain in implementation and political feasibility.
Budget 2024 introduces several promising measures aimed at addressing the home market’s challenges. While these proposals represent incremental progress, they highlight the complexity within affordability, supply, and market dynamics in Canada’s Housing Landscape. If you have questions about Canada’s Housing Plan and how it will affect your options, Contact Us today!
Original Article – April 23, 2024 – NerdWallet
