If housing unaffordability is a consideration, BC should have been first out of the gate announcing a partnership with Ottawa to fund tax relief and reduction of municipal development charges.
BC has the highest average home price at $932,711 where the country’s average is $663,828.
However, Ontario was the first to announce a deal with the federal govt. The agreement removes the full 13% HST on new homes priced up to $1 million and covers all buyers including investors, if they rent out the unit. A phased-in rebate is available on new homes up to $1.5 million
In addition, the govts will cost-match a total of $8.8 billion over 10 years for housing infrastructure projects, including reducing municipal development charges (DCCs) up to 50%.
Municipalities are also expected to support DCC reductions, so that all three levels of government are supporting increased housing supply and affordability.
British Columbians are waiting for their govt to announce a similar partnership.
Sales have declined since last year while local governments continue increasing development charges. Victoria boosted DCCs up to 258% last year and the CRD board recently approved charges up to $9,045 per new home.
The average home price in Ontario is the second highest in Canada at $802,601, so Premier Ford was eager to address the issue.
BC’s homebuyers and builders hope Premier Eby will be announcing a similar deal shortly. While a GST rebate is presently available to first-time buyers only, this segment alone is not large enough to breathe new life into the housing industry.
Govt fees, taxes and regulations have put housing out-of-reach for the average BC homebuyer, and the federal govt is now offering to provide some temporary relief.
In Canada’s highest priced province, homebuyers and industry anxiously await a partnership announcement by Premier Eby and Prime Minister Carney.
This column appears Wednesdays in the Times Colonist.
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