Government of Canada Announces New $1.7B Package to Boost Housing Supply
The Canadian Real Estate Association (CREA) welcomes the Government of Canada’s introduction of Bill C-26 on Thursday, March 26, 2026, An Act to authorize certain payments to be made out of the Consolidated Revenue Fund for the purpose of improving housing supply.
The proposed $1.7 billion package, if passed, would provide an immediate, time-limited funding boost via housing transfers to provinces and territories willing to partner on improving housing supply. This is an investment that will help kickstart development and protect critical jobs in the homebuilding sector at a time of global economic uncertainty.
This funding is a direct reflection of the advocacy work undertaken by CREA and our shared members across the country and is proof that when governments act on the recommendations of experts, progress is possible. While the funding granted and practical impacts will vary significantly across provinces and territories depending on partnership uptake, the principle behind this approach is sound.
CREA is also encouraged by the collaborative spirit and balanced approach behind this announcement, with the Ontario Government coming to the table in partnership with the federal government to fully remove the HST for all buyers of newly built homes in Ontario for one year. A time-limited removal of the GST/HST from all new builds is exactly the kind of targeted measure REALTORS® called for in our 2025 pre-budget submission and allows government to assess the effect on supply while also immediately reducing costs for buyers and helping free up existing housing stock for families.
The message here for the rest of the country is clear: we need every provincial and territorial government to come to the table with a similar level of ambition to increase housing supply across Canada. This is why CREA is calling for the federal government to build on this momentum with a renewed National Housing Strategy 2.0 – one that makes this kind of cross-jurisdictional collaboration the rule, not the exception.
What’s needed next is buy-in and partnership commitments from every province and territory. CREA’s Government Relations team will be working directly with our provincial associations to help move those conversations forward. Together, we’re advocating for outcome-driven policies at the national and provincial levels that both increases housing supply across the continuum and helps restore the pathway to attainable homeownership for generations of Canadians.
