Justin Trudeau has resigned as the leader of the Liberal Party after nearly a decade of serving as Canada’s prime minister. The announcement comes after weeks of mounting pressure for him to step aside ahead of the next federal election in an attempt by the Liberal Party to more effectively compete against Pierre Poilievre’s Conservatives.
“I intend to resign as party leader, as prime minister after the party selects its next leader through a robust nationwide competitive process,” Trudeau said during Monday’s news conference. “Last night, I asked the president of the Liberal Party to begin that process. This country deserves a real choice in the next election, and it has become clear to me that if I am having to fight internal battles, I cannot be the best option in that election.”
Trudeau has faced increased scrutiny since mid-December when former finance minister Chrystia Freeland resigned from her post, citing Trudeau’s “political gimmicks” amid Donald Trump’s tariff threats as the driving reason for her decision to step down. More calls for Trudeau to resign quickly followed, with MPs from all parties urging him to “do what’s best for the country.”
As per Trudeau’s announcement, all parliamentary activities will be prorogued until March 24 as the Liberals seek to elect a new leader—a move some are criticizing given Donald Trump is just days away from being sworn in. While the broader implications for the economy are still unknown, economists and business leaders have expressed concerns about what Trudeau’s resignation and resulting political instability could mean for the financial markets, including real estate investments, given some businesses may choose to delay activity in favour of taking a “wait-and-see” approach.
Regardless, according to Candace Laing, President and CEO, Canadian Chamber of Commerce, the move marks “a turning point” as Canada tackles unprecedented domestic and international challenges.
“Prime Minister Justin Trudeau read the room and made the right call by announcing his resignation today,” Laing said in a statement. “Canada can’t afford inaction with so much at stake. Unity is key: political leaders, businesses, and communities must come together around our common opportunities. Canada’s next Prime Minister must hit the ground running and be laser-focused on strengthening the Canada-U.S. trade relationship.”
Looking back: housing measures that helped
Since 2015, the Trudeau government introduced several housing-related measures to address affordability and homelessness in Canada, many of which were deemed successful, and others less so. Arguably, the Enhanced GST Rental Rebate program, introduced in 2023 to support the construction of apartment buildings, student housing, and seniors’ residences, continues to have the most impact for the apartment sector. Since its inception, the rebate has directly contributed to several new rental projects seeing the light of day, including major developments from Greenwin, Medallion Corporation, and Dream Unlimited to name a few.
“This legislation is a game-changer for the development industry, and more importantly for Canadians,” said Michael J. Cooper, President and Chief Responsible Officer, Dream Unlimited, when the exemptions were introduced. “The housing crisis has impacted every urban centre from coast to coast. What this legislation unlocks is our ability to get shovels into the ground quickly at a time when it’s never been more critical to build new homes.”
Other housing policies under Trudeau’s Liberals:
- National Housing Strategy: A ten-year plan to invest over $72 billion to build supply, make housing more affordable, and address chronic homelessness.
- Canada Housing Benefit: Agreements with provinces and territories to provide $4 billion in cost-matched funding, helping over 300,000 Canadians pay rent.
- Housing Accelerator Fund (HAF): An initiative introduced in the 2022 to boost housing supply by providing incentive funding to local governments.
- Rapid Housing Initiative: A $2.5 billion investment to create at least 9,200 new units of affordable housing across Canada.
- First-Time Home Buyers’ Incentive: A shared equity mortgage program to help eligible first-time home buyers finance a portion of their home purchase.
- Vacant Property Tax: A national tax on vacant property owned by non-resident, non-Canadians, introduced in 2022.
- Distinctions-Based Housing Strategies: Over $1.7 billion committed for housing strategies for First Nations, Inuit, and Métis communities
We will continue to report as the story develops. Follow along as more details become available.
