Housing remains a key issue as Canada approaches its federal election on April 28, 2025. From homeownership incentives to tax reductions to the expansion of public housing, each party’s platform showcases unique priorities and strategies aimed at improving housing affordability for Canadians. That said, unlike past federal elections, strained Canada-U.S. relations and the continuous threat of Trump tariffs will largely determine the outcome as more Canadians seek to elect a Prime Minister who aligns with their economic interests.
For the rental housing sector, certain policies from each party have emerged as more favourable than others given the industry’s overriding goal to deliver quality rental housing at a pace needed to keep up with the nation’s changing housing requirements.
“Canada needs a large-scale, long-term housing strategy—one that outlasts political cycles and enables consistent delivery across decades, not just mandates,” said Michael Tsourounis, Managing Partner and Chief Investment Officer at Hazelview Investments. “The private sector has the talent, scale, and expertise to deliver. Canada has an extremely robust development ecosystem already in place that is ready to build housing now.”
Tsourounis’s comment follows multiple housing announcements made by the major parties in early April, including the Liberal Party’s proposal to establish a federal Crown agency called Build Canada Homes (BCH) that would oversee affordable housing projects. As Mark Carney put it: “We’re going to get the government back into the business of homebuilding, while partnering with workers and industry, and cutting taxes for home buyers – so more Canadians can buy their first homes.”
If the Liberal Party is elected, the BCH will provide $10 billion in low-cost financing and grants, with $6 billion earmarked for “deeply affordable housing”, including rental units, supportive housing, Indigenous housing, and shelters. Carney revealed his government also intends to revive the Multiple Unit Rental Building (MURB) cost allowance, a tax incentive from the 1970s that successfully encouraged new rental apartment construction.
“The government’s role should be to unlock supply,” Tsourounis said. “This means streamlining approvals, cutting red tape, and removing policy friction that slows progress, as well as providing targeted incentives that aid in the construction of housing supply. With continuity, clear policy, and targeted incentives, the private sector can deliver housing at scale, with the quality and the efficiency Canadians need.”
On this front, the Liberals plan to build on the Housing Accelerator Fund as a method to reduce housing bureaucracy, zoning restrictions, and other red tape. Carney also promises to cut municipal development charges in half for multi-unit residential housing and facilitate the conversion of existing structures into affordable housing units.
Meanwhile, Pierre Poilievre’s Conservatives have also been vocal about implementing policies to ease the financial burden for first-time homebuyers, accelerate housing construction and make homes more affordable. Should the Conservative Party be victorious in the upcoming federal election, Poilievre’s “Building Homes Not Bureaucracy Act” aims to accomplish these goals by:
- Tying federal funding to housing starts – cities must increase the number of homes built by 15% annually. Municipalities that fail to meet this target will face reduced federal funding, while those exceeding it will receive bonuses.
- Reducing red tape – with measures to “cut through bureaucratic delays and regulations” that add significant costs to housing projects.
- Incentivizing faster construction – by linking federal transit funding to housing development, encouraging cities to prioritize building homes.
Housing innovation
As technology advances, bringing more innovative building solutions to the forefront, Carney has indicated an interest in investing in modular construction. His Liberal Party, if elected, will allocate $25 billion in financing for prefabricated and modular builders. Modular construction is considered to be a potential solution to Canada’s housing crisis, allowing homes, including mid-rise apartments, to be constructed faster, more affordably, and more sustainably.
While Pierre Poilievre has not explicitly committed to investing in housing innovation, his plan emphasizes innovative private-sector partnerships that could lead to unique outcomes. The Party says it intends to collaborate with the Canadian Construction Association (CCA), which is calling for strategic changes, including the development of a comprehensive 25-year infrastructure investment strategy, modernized immigration policies to address workforce shortages, and streamlined procurement practices. CCA’s strategy also includes a call for increased automation, streamlined supply chains, and a shift from custom design to mass manufacturing to reduce housing costs.
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