Federal Fall Economic Statement Includes Review of Stress Test   

Amid much other political activity, the Federal Government released its Fall Economic Statement (FES) on Tuesday. CHBA was pleased to be invited to the lock-up again, which provides not only advanced access to the document, but an opportunity to dialogue with government officials from the Department of Finance. The FES once again heavily emphasized housing and homebuilding, though most was highlighting previous announcements such as 30-year amortizations for insured mortgages, a major CHBA win. CHBA’s recommendation to take steps to encourage longer-term mortgages was taken up, with a new consultation set to get underway. CHBA has been pushing this for years, also recommending that the stress test be dropped entirely for longer-term mortgages, and for changes to the stress test to make it more dynamic and less punitive. CHBA is therefore pleased that the FES has announced that the government will be launching consultations to improve the structure of the stress test on insured mortgages, and CHBA looks forward to participating. Several other new measures aligning with CHBA advocacy were introduced, including expansion of the loan limits for secondary suites and increasing funding for green retrofits. The FES also highlighted the activities under the Housing Accelerator Fund aimed at removing red-tape on home building at the municipal level and increasing housing supply by specific amounts, and – importantly noted, per CHBA recommendations – the government is “developing a public tracker of progress on these agreements… [to] hold local governments to account” and “will place municipalities under review if they are found to be contravening their agreements.” The House of Commons has now risen for winter recess and is set to return on January 27, 2025. CHBA will keep members apprised of any major developments.  

Prime Minister Shuffles Cabinet and Appoints New Federal Housing Minister  

Prime Minister Justin Trudeau has shuffled his Cabinet, bringing in new ministers for several CHBA-related files, including Toronto-MP Nate Erskine-Smith as the new federal housing minister, replacing Sean Fraser. Erskine-Smith has been an MP since 2015 but never in Cabinet. He has a reputation as being an outspoken member of the Liberal caucus, oftentimes voicing opinions contrary to that of his own party and leader. In December 2023, Erskine-Smith announced that he was not going to run again federally but has since changed his mind. Earlier in 2023, Erskine-Smith ran for the leadership of the Ontario Liberal Party (eventually losing to Bonnie Crombie). During his leadership campaign for the Ontario Liberals, he put forth provincial housing policy positions that included the creation of a provincial public builder to create affordable housing directly, rules that would override local opposition to new homes, and changes to the way Ontario taxes real estate to limit speculation. With the federal government’s focus on building more market-rate housing supply, CHBA will be actively engaging Erskine-Smith to ensure that efforts to address market-rate affordability remain a key priority for him and his department, and will seek the type of positive working relationship CHBA had with the previous housing minister. CHBA also looks forward to meeting with the other new ministers related to CHBA files to discuss the opportunities and challenges in the home construction industry. The House of Commons has now risen for winter recess and is set to return on January 27, 2025. CHBA will keep members apprised of any major developments. 

CHBA Testified on Impacts of U.S. Softwood Lumber Trade Dispute for Residential Construction      
CHBA CEO Kevin Lee appeared before the House of Commons Standing Committee on International Trade. Lee was invited to testify before the committee on their study into Recent Developments Concerning the Canada – United States Softwood Lumber Trade Dispute. During his testimony, Lee spoke to how the ongoing softwood lumber trade dispute is impacting the home construction industry and reiterated how the uncertainty between Canada and the United States on softwood lumber can have major implications on lumber prices and supply in Canada. Instability with supply and prices will impact residential construction jobs, the sector’s contribution to economic activity, and continue to exacerbate housing affordability challenges for consumers. Through the extensive question and answer period, Lee also addressed several other CHBA recommendations related to housing affordability and supply. To read Lee’s opening statement to the committee or see the video of his full testimony, please visit the CHBA website Consultations page. 

Financialization of Housing

The federal government has launched a consultation into proposed restrictions on large, corporate investors purchasing existing single-family homes. CHBA provided a submission on the subject and expressed that a comprehensive approach is needed by the government. The approach must work within Canada’s free-market system to leverage the private capital of Canadians and Canadian businesses; the current housing deficit cannot be corrected by stifling investment. CHBA’s submission also reiterated that a chronic lack of supply is the reason that housing has become such an in-demand commodity which is now extending investment for rental into single-family homes, as families struggle to afford homeownership but still seek single-family home options. The key is to better support affordability and supply, not stifle investment which is simply a function of the problem, not the problem itself. To read the submission in full, including CHBA’s recommendations, please visit the CHBA website Consultations page. 

New Training Rebate Program: $330 off select courses 

CHBA has launched a 3-year NRCan funded project called Enabling Tiered Codes – Implementation and Market Preparedness to help prepare the industry for future building codes. To support the project objective of building industry competency, CHBA is offering $330 rebates for select courses. Please note that the rebates are only available to CHBA members who pass the exam. For more information about this funded project and links to register for the training, please visit this page!

Adaptiv Home Renovation Course  

FEBRUARY 18-19, 2025 | VIRTUAL
Registration is now open for the next virtual Adaptiv Home Renovation Course taking place on February 18-19. Aimed at renovators, designers, and other professionals who want to learn more about the aging in place market and the growing business opportunities across the country, the emphasis of this course is on improving design with safety, security, ease of use, comfort, accessibility, and occupant health, and includes a building knowledge component. Upon successful completion of the course, CHBA members are recognized on the Qualified Adaptiv Home Specialist directory and receive access to a full suite of resources to help promote this prestigious designation. For more information and to register, click here.