State of New Housing: What Can Governments Do For New Homes?
AI Article Summary
The article discusses measures the Canadian government could adopt to bolster its struggling housing market, setting a target to build 500,000 new homes annually. It highlights regional disparities from Atlantic Canada to British Columbia and Ontario, where the real estate market is particularly challenged. Key recommendations include eliminating the HST/GST on new homes for 36 months, reducing interest rates, and lowering land transfer taxes. The article suggests these actions could reduce home prices by 20% to 30%, stimulate projects, and avoid future supply shortages.
What This Means for Canadian Contractors
For Canadian builders, these proposed policy changes mean that there could be significant cost reductions in new home construction and an increased likelihood of project initiation. Builders may see fewer barriers in securing funding and navigating through permits if governments act to reduce taxes and development charges. This could also lead to a more streamlined supply chain and reduced timelines as more projects gain financial viability rapidly.
