Government Commits to Restoring Housing Affordability in Speech from the Throne

By Nicole Ferenczi
May 29, 2025 / 3 minute read

On May 27, 2025, His Majesty King Charles III, King of Canada, delivered Canada's Speech from the Throne in Ottawa, Ontario, titled Building Canada Strong: A Bold, Ambitious Plan for Our Future. This speech signals the official opening of the 45^th Parliament of Canada and sets out the direction of the newly elected government of Prime Minister Mark Carney.

The King’s speech marks the third time a monarch has read the throne speech in Canada and follows the release of Prime Minister Carney’s cabinet mandate letter just one week prior, highlighting the government’s intention to adopt a disciplined approach to solving the multifaceted challenges Canada faces.

The speech reaffirmed the government’s seven areas of focus as outlined during the election campaign and in the cabinet mandate letter:

Strengthening the economic and security relationship with the U.S.
Removing interprovincial trade barriers to strengthen the economy.
Lowering the cost of living for Canadians.
Restoring housing affordability by encouraging public-private cooperation, catalyzing a modern housing industry, and creating new careers in the skilled trades.
Keeping Canadians safe and protecting Canadian sovereignty.
Returning to a sustainable immigration rate that continues to build the economy.
Reducing government operational spending to help make Canada’s economy the strongest among the G7 nations.

The Canadian Real Estate Association (CREA) is pleased to see the government is committed to restoring housing affordability, while demonstrating its understanding for the immediate and critical need to build a strong, resilient housing sector. The King stated:

Critically, the Government will undertake a series of measures to help double the rate of home building while creating an entirely new housing industry – using Canadian technology, Canadian skilled workers, and Canadian lumber. The government will introduce measures to deliver affordable homes by creating Build Canada Homes. This mission-driven organization will act to accelerate the development of new affordable housing. It will invest in the growth of the prefabricated and modular housing industry. And it will provide significant financing to affordable home builders. The government will make the housing market work better, including by cutting municipal development charges in half for all multi-unit housing. The government will drive supply up to bring housing costs down.”

In line with REALTOR® advocacy, the government confirmed its intention to restore housing affordability by:

Removing the GST on homes under $1 million for first-time home buyers; and
Lowering the GST on homes priced between $1 million and $1.5 million to promote the goal of affordable homeownership.
Doubling the rate of homebuilding by embracing Canadian technology, lumber, and skilled workers.
Cutting development charges in half for all multi-unit housing to increase supply and lower costs.

The government also announced their intention to create a new industry in modular and prefabricated housing. This REALTOR® recommendation was first presented during CREA’s 2024 spring pre-budget submission, subsequently advanced by our REALTOR® members in their constituencies during 2024 PAC at Home, and later taken to Parliament Hill during PAC Days 2024. CREA reinforced the importance of this policy through Housing Canada: A Sovereign Plan to Protect Canadians and Build a Resilient Housing System, a 10-part policy plan launched by the Housing Canada Coalition ahead of the 2025 general election.

Read the Speech from the Throne

Building a stronger, more resilient housing system for Canadians – one that supports affordable homeownership and meets the diverse needs of communities – is a significant challenge for the new government. CREA is encouraged by the government’s focus on housing as a national priority. Federal leadership is critical in advancing a coordinated, cross-sector response that includes all-levels of government, the private sector, housing organizations, and Indigenous partners to reverse the housing crisis. REALTORS® are committed to advocating for all Canadians to have a place to call home. CREA looks forward to working with the new government to strengthen the housing continuum – supporting pathways to homeownership, addressing issues of affordability, and ensuring safe and suitable homes are within reach for all Canadians.

CREA’s Government Relations team will continue to monitor and analyze the initiatives proposed in today’s speech and any proposed policy on housing that may affect REALTORS®, their clients, and the housing continuum.

The speech can be debated for up to six days, after which a vote on the main motion is held.

Nicole Ferenczi

As CREA’s Government Relations Advisor, Nicole Ferenczi leads CREA’s member-driven lobbying campaigns, PAC Days and PAC at Home. She works closely with boards and associations, as well as government and private sector partners daily, supports the Federal Affairs Committee, manages the Advocacy Grant Program, and administers our online grassroots advocacy platform, the REALTOR® Action Network. When she isn’t working, you’ll find her trying new restaurants in town, practicing Pilates, reading, or spending quality time with family and friends.