Tax incentives likely for builders in Canada to ease housing crisis

Robert Besser
15 Sep 2023, 01:40 GMT+10

CBC reported on September 10 that Sean Fraser, Housing Minister of Canada, is assessing various options to ease the national housing crisis
The report added that Fraser could also remove the Goods and Services Tax (GST) on affordable housing projects and allocate more federal land to rental housing
Canada's housing affordability crisis, blamed on the rising number of migrants and international students, has increased the demand for homes amid a slowdown in construction

OTTAWA, Canada: CBC reported on September 10 that Sean Fraser, Housing Minister of Canada, is assessing various options to ease the national housing crisis.

In an interview with CBC, Fraser said, "There is a range of incentives we are considering right now. Some could include potential tax incentives for builders to build. Some could include other low-cost financing arrangements."

The report added that Fraser could also remove the Goods and Services Tax (GST) on affordable housing projects and allocate more federal land to rental housing.

Fraser added that the government aims to use funds allocated for existing programs more effectively, facilitate the use of available construction workforce, and support relatively underdeveloped industries, such as factory-built homes.

Canada's housing affordability crisis, blamed on the rising number of migrants and international students, has increased the demand for homes amid a slowdown in construction.

The Canadian economy's unexpected contraction in the second quarter of this year pointed toward declining housing investment, smaller inventories, slower international exports, and household spending.

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