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Several housing industry stakeholders are citing grave concerns with aspects of Prime Minister Mark Carney\u2019s first budget, saying it\u00a0doesn\u2019t\u00a0go far enough for the struggling sector.<\/span><\/p>\n The Large Urban Centre Alliance, co-facilitated by the Building Industry and Land Development Association (BILD),\u00a0stated\u00a0\u201cwhat was once a promise to deliver 500,000 new homes annually has now become a plan that will cost 100,000 jobs. Canadians are now facing the prospect of a worsening crisis that will\u00a0impact\u00a0housing supply, employment, economic activity,\u00a0and ultimately, middle-class\u00a0families.\u201d<\/span>\u00a0<\/span><\/p>\n David Wilkes,\u00a0president\u00a0and\u00a0CEO of BILD, said\u00a0the budget is providing false reassurances\u00a0that the nation\u2019s housing situation is \u201cprospering\u201d with affordability improving.<\/span>\u00a0<\/span><\/p>\n \u201cThe latest figures show that new home sales have evaporated across all housing types in every major city across Canada,\u201d said Wilkes. \u201c(The)\u00a0budget missed an opportunity to address the historic downturn that the housing industry is experiencing with sales at near crisis levels. The lack of urgency to confront the current situation is committing us to a future of fewer jobs and less housing of all types in the years ahead.\u201d<\/span>\u00a0<\/span><\/p>\n Budget 2025, coined Canada Strong, sets out several initiatives the government states will improve the housing supply and affordability gap in the country. This includes a previous promise to eliminate the GST for first-time buyers at or under $1 million;\u00a0reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million; launching the new Build Canada Homes agency with an initial investment of\u00a0$13 billion\u00a0over five years starting in\u00a02025-26; and\u00a0$12 billion\u00a0over 10 years for housing enabling infrastructure.<\/span>\u00a0<\/span><\/p>\n For the alliance,\u00a0it\u2019s\u00a0the nuances that make all the difference,\u00a0stating\u00a0the GST\/HST components are\u00a0\u201conly for first-time buyers \u2013\u00a0a very small\u00a0fraction of the market.<\/span>\u00a0<\/span><\/p>\n \u201cWith this narrow application, the GST\/HST on new homes will continue to erode affordability for Canadians in large urban\u00a0centres\u00a0where the need is greatest, leaving middle class buyers behind.\u201d<\/span>\u00a0<\/span><\/p>\n Another aspect that is \u201ctroubling\u201d pertains to Development Charges (DCs).\u00a0<\/span>\u00a0<\/span><\/p>\n \u201cNot only has the federal government\u2019s language changed markedly, backing away from the commitment to reduce DCs by 50\u00a0per cent, but the commitment is now only a framework for federal, territorial\u00a0and provincial agreements, not an actionable plan to reduce municipal housing fees with any sense of urgency.\u201d<\/span>\u00a0<\/span><\/p>\n The Canadian Home Builders\u2019 Association (CHBA) shares in the alliance\u2019s concerns.\u00a0<\/span><\/p>\n \u201cThe budget unfortunately retreats from the Liberal platform\u2019s commitment to work with municipalities to reduce development taxes by 50 per\u00a0cent. Over the past two decades, these taxes have soared by 700\u00a0per cent, pricing countless Canadians out of the market,\u201d the CHBA notes, adding the budget also missed the mark on supporting skilled workers.\u00a0<\/span>\u00a0<\/span><\/p>\n \u201cIt only announced training measures that support unions, when only about\u00a010\u00a0per\u00a0cent of residential construction workers outside of Qu\u00e9bec are unionized,\u201d it adds.\u00a0<\/span>\u00a0<\/span><\/p>\n The Residential Construction Council of Ontario (RESCON) said it was\u00a0largely pleased\u00a0with Budget 2025, adding it\u00a0solidifies pledges and programs the federal government announced earlier to spur new housing construction, especially the commitment to cut sales taxes.<\/span>\u00a0<\/span><\/p>\n \u201cEliminating the GST on new homes at or under $1 million and reducing it on those up to $1.5 million for first-time buyers is a step in the right direction because exorbitant taxes, fees and levies are crippling the residential construction industry,\u201d says RESCON president Richard Lyall. \u201cFirst-time buyers\u00a0represent\u00a0a substantial segment of the market, and we are already seeing increased traffic at sales\u00a0centres\u00a0as a result of\u00a0the move. It is a step in the right direction.\u201d<\/span>\u00a0<\/span><\/p>\n Habitat for Humanity echoed RECON\u2019s\u00a0praise,\u00a0but\u00a0is urging Ottawa to share how the measures \u201cwill meet Canadians\u2019 aspirations to own a home.\u201d<\/span><\/p>\n<\/p><\/div>\n