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Unlocking Housing Potential: Canada's Plan for Affordable Homes
October 16, 2024 | Posted by: Angela Robinson
Across Canada, many properties—from vacant lots to unused basements—are underutilized, presenting a missed opportunity to address the housing crisis. By making it easier for homeowners to add secondary suites and unlocking vacant federal lands, the government aims to increase the housing supply and improve affordability.
Federal Initiatives to Boost Housing
On October 8th, Deputy Prime Minister Chrystia Freeland, alongside ministers Jean-Yves Duclos and Terry Beech, announced key steps to expand Canada’s housing stock. These include:
- Mortgage Reforms for Secondary Suites: Starting January 15, 2025, homeowners will be able to refinance up to 90% of their home’s value to add secondary suites like basement apartments or laneway homes. These spaces can provide rental income, helping to pay mortgages and increase housing density.
- Vacant Land Tax Consultations: The government is working with provinces and municipalities to introduce taxes on vacant land, encouraging landowners to develop or sell unused properties to boost housing availability.
- Unlocking Federal Lands: The federal government has added 14 new properties to its Public Land Bank, now offering 70 sites for housing development. The goal is to repurpose federal lands to build 250,000 new homes as part of a broader plan to construct 4 million homes by 2031.
A Path to More Affordable Homes
These measures, combined with mortgage reforms that raise insured home price caps and extend amortizations, are part of the federal government’s larger plan to make homeownership more accessible. By maximizing the use of underused spaces and vacant properties, the government is working to ensure affordable housing for all Canadians.
