Trudeau’s Resignation and Poilievre’s Housing Plan
In a (maybe not so) surprising turn of events, Justin Trudeau has stepped down as Prime Minister, leaving Canada at a political crossroads. With no clear date for the next federal election and Parliament prorogued, legislative activity has hit pause until March 24, 2025.
Amidst this political shuffle, all signs point towards Conservative leader Pierre Poilievre taking over as Prime Minister at some point in 2025. He’s currently leading polls at 44%, according to the CBC Poll Tracker, and is an overwhelming favourite in betting markets. But what about the housing market?
With skyrocketing home prices and housing supply falling behind demand, Poilievre’s housing proposals aim to reshape the housing market by cutting bureaucracy, introducing new incentives, and demanding accountability. Regardless of your political affiliations or beliefs, it’s important to look ahead and prepare ourselves for what’s next in the Canadian housing & real estate market. Let’s take a closer look at his housing strategy.
Quick Overview of Poilievre’s Housing Plan
Pierre Poilievre’s housing plan rests on five key pillars:
- Building More Homes: Aiming to increase the housing supply through targets and financial incentives.
- Incentives and Penalties: Tackling municipal roadblocks and prioritizing high-density developments.
- Tax and Funding Changes: Cutting GST and repurposing federal assets to boost affordability.
- Streamlining Processes: Slashing bureaucratic delays and holding agencies accountable.
- Other Measures: Reforming federal programs and converting properties for affordable housing.
Let’s dive deeper into each pillar to understand their potential impact.
1. Building More Homes: Encouraging Supply Growth
Poilievre’s plan emphasizes increasing housing supply by tying federal funding to specific targets. Under his proposal, municipalities must boost housing starts by 15% annually to receive full federal infrastructure funding.
Key Proposals
- Federal Funding Tied to Housing Starts: Cities must meet the 15% annual growth target or face funding clawbacks.
- Building Bonuses: Municipalities exceeding the 15% target would receive extra funding, including $10,000 for every additional home built.
- Accountability System: A transparent formula ensures predictable outcomes—more homes mean more money for municipalities.
Potential Impact
By rewarding results and penalizing inefficiencies, Poilievre’s approach shifts focus to productivity rather than bureaucracy. However, critics argue that meeting these targets could strain smaller municipalities and create conflicts over zoning laws and land availability.
2. Incentives and Penalties: Fighting NIMBYism and Promoting Density
To address local opposition and urban inefficiencies, Poilievre’s plan introduces financial penalties for municipalities that block housing developments.
Key Proposals
- NIMBY (Not In My Backyard) Fine: Municipalities that block projects due to "egregious" local opposition face fines.
- NIMBY is opposition by local residents & governments to new developments, particularly high-density housing, in their neighborhoods. This resistance often stems from concerns about increased traffic, strain on local infrastructure, potential decreases in property values, or changes to the character of the community.
- Transit-Oriented Housing: Cities must build high-density housing around transit stations to receive federal transit and infrastructure funding.
Potential Impact
These measures aim to reduce resistance to development in established neighborhoods, prioritizing transit-friendly housing for low-income families, students, and seniors. However, enforcing these penalties may lead to legal battles and strain federal-municipal relations.
3. Tax and Funding Changes: Cutting Costs for Buyers and Builders
A cornerstone of Poilievre’s housing plan is eliminating the GST on new homes priced under $1 million and affordable rental units. This measure is designed to make housing more affordable while encouraging builders to focus on affordable developments.
Key Proposals
- GST Elimination: Buyers save up to $50,000 on homes under $1 million.
- Affordable Rental Units: Removes GST on affordable apartment projects to spur construction.
- Repurposing Federal Properties: Selling 15% of federally owned buildings to create affordable housing.
Potential Impact
The tax cut could incentivize builders and save buyers substantial costs, potentially increasing the construction of an additional 30,000 homes annually. However, funding this initiative requires scrapping existing Liberal programs like the Housing Accelerator Fund, which critics argue could hinder progress in other areas.
4. Streamlining Processes: Cutting Red Tape
To accelerate housing development, Poilievre targets the slow approval processes often blamed for stalling projects. His plan holds the Canada Mortgage and Housing Corporation (CMHC) and municipalities accountable for meeting strict timelines.
Key Proposals
- CMHC Deadlines: Requires financing approvals within 60 days, with penalties for staff who fail to meet targets.
- Faster Permitting: Municipalities must reduce permitting costs and speed up processing times.
- Performance-Linked Bonuses: CMHC staff bonuses tied to achieving approval targets.
Potential Impact
Streamlining these processes could significantly reduce delays, encouraging faster housing construction. However, critics warn that rushing approvals might compromise the quality and safety of developments.
5. Other Measures: Reforming Programs and Federal Properties
Poilievre also proposes scrapping certain Liberal housing programs and converting federal properties into affordable housing.
Key Proposals
- Program Overhaul: Replacing the Housing Accelerator Fund and Canada Housing Infrastructure Fund with tax cuts and financial incentives.
- Converting Federal Properties: Turning underused government buildings into affordable housing.
Potential Impact
Repurposing federal properties could provide immediate solutions for affordable housing needs. However, critics question whether eliminating established programs will create unintended gaps in housing support.
Conclusion: Can Poilievre’s Plan Solve Canada’s Housing Crisis?
Pierre Poilievre’s housing plan represents a bold and results-driven approach to Canada’s housing crisis. By focusing on supply growth, cutting costs, and streamlining processes, his proposals aim to address affordability and accessibility issues head-on.
However, the plan comes with significant challenges, including potential conflicts with municipalities, the risk of legal disputes, and the uncertainty of replacing existing programs. As Poilievre continues to rise in the polls, his housing strategy will be a key factor in determining his success in addressing one of Canada’s most pressing issues.
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