By: Sahra Mohamed
Canada’s housing market has become a growing concern in major cities like Toronto and Vancouver. Families and first-time homebuyers are facing unprecedented challenges as prices, along with mortgage costs, continue to rise. As the federal election approaches, it’s important for Canadians to understand the housing policies put forward by political parties.
In Vancouver, the average price of a home in February 2025 was $1,169,100, while in Toronto, the average price was $1,089,300 in January 2025. Sales in Toronto also increased by 10% compared to the previous month, as reported by Reuters.
According to the Bank of Canada’s Housing Affordability Index, it’s now harder than ever for Canadians to afford homes. The percentage of income spent on mortgage payments is the highest it has been since 1982.
First-time homebuyers are finding it difficult to enter the market. The Royal Bank of Canada reports that affordability has worsened, with housing costs now taking up over half of an average Canadian’s income.
As election day nears, the major political parties have released their housing policies, offering different approaches to tackle the crisis.
The Liberal Party proposes eliminating the Goods and Services Tax (GST) on new homes priced up to $1.5 million for first-time buyers. This would lower the financial burden on new homeowners. They plan to bring back rent-to-own programs, allowing renters to build equity over time and eventually buy a home.
The Conservative Party wants to remove zoning restrictions to speed up the construction of new housing units. They also plan to offer a $2,000 tax credit for first-time homebuyers on provincial land transfer taxes, providing some financial relief.
The New Democratic Party (NDP) proposes building 500,000 new affordable homes over the next decade to address the housing supply shortage. The NDP also supports national rent control to limit yearly rent increases and protect renters from rising costs.
The Bloc Québécois has suggested a national tax on vacant properties, which would encourage owners to either sell or rent out these properties, helping to ease the housing supply issue.
The Green Party, focusing on sustainability, advocates for energy-efficient homes that meet green building standards to reduce the carbon footprint of the housing sector.
The Canadian housing crisis demands urgent action. Each party offers different solutions. Voters must carefully consider how these policies match their needs and the current housing situation as they head to the polls.
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