On March 26, Ontario announced a partnership with Ottawa to fund tax relief on new housing and a reduction of municipal development charges.
More than a month later, British Columbia homebuyers and builders are still waiting for similar tax relief.
The Ontario 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.
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%.
On April 8, we wrote a column called “BC Homebuyers Await Eby/Carney Housing Partnership” which said, “If housing unaffordability is a consideration, BC should have been first out of the gate announcing a partnership with Ottawa…” .
BC has highest average home price at $939,623 where the country’s average is $673,084.
Ontario builders are reporting brisk sales since their government announced the tax relief. Builders are also rehiring staff and subtrades boosting Ontario’s employment and economy.
In our region, rapidly escalating DCCs are making new housing unaffordable to build as outlined in a recent study submitted to the Capital Regional District (CRD) board – a study they ignored.
Housing sales have declined 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.
A tax relief agreement with Ottawa would kickstart new housing in BC, securing employment and boosting a declining economy.
While a GST rebate is presently available to first-time buyers only, this segment alone is not large enough to breathe new life into housing.
Govt fees, taxes and regulations have put housing out-of-reach for the average BC homebuyer.
So far, the BC government appears to be asleep at the wheel.
In Canada’s highest priced province, homebuyers and industry are waiting for Premier Eby to wake up and announce a tax relief deal with Prime Minister Carney.
This column appears Wednesdays in the Times Colonist.
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