Are We Building a Better Future? A Closer Look at the 2024 Federal Budget’s Impact on Real Estate
Posted By: Rachel Kavanagh
The 2024 federal budget introduced by the Canadian government is poised to have a significant impact on the real estate sector, particularly in addressing housing affordability. Here’s a detailed look at some of the key measures outlined in the budget:
1. Leasing Federally Owned Land for Affordable Housing: The government plans to leverage publicly-owned lands by entering into long-term leases to construct affordable housing. This initiative aims to reduce federal office space by about 50% over the next decade, with 50% of current federal office space being either underused or vacant.
2. 30-Year Mortgages for First-Time Homebuyers: First-time homebuyers who require mortgage insurance with a down payment of less than 20% will now have the option to extend their mortgage amortization period from 25 years to 30 years. This measure is intended to make homeownership more affordable for this demographic. The City of Markham has a number of new home developments for sale that first time home buyers will be able to take advantage of.
3. Multi-Billion Dollar Fund for Housing Infrastructure: A substantial fund has been allocated for wastewater, stormwater, and solid waste infrastructure necessary for new housing developments. Provinces seeking access to these funds will be required to relax single-family zoning restrictions and allow for fourplexes by default.
4. Canada Rental Protection Fund: A $1.5 billion program has been established to protect existing apartment buildings from being sold and converted into higher-priced units. This initiative aims to preserve affordable rental units and mitigate the impact of rising rents.
5. Funding for Housing Design Catalogue: To expedite the design process for new homes, the government has committed $11.6 million to develop a catalogue of standardized blueprints for new construction. This initiative is expected to streamline the home-building process. This is good news for cities and communities like Markham, Unionville and Stouffville as the demand is increasingly high and will allow real estate to be built in a more timely manner.
6. Boost to Apartment Construction Loan Program: The federal government will inject an additional $15 billion into the apartment construction loan program. Developers who set aside at least 20% of rental project units for affordable housing will be eligible for these loans.
7. $100 Million Incentive for New Home Building Technology: A $100 million fund has been established to encourage the adoption of new construction methods and materials in the housing industry. This includes support for modular and prefabricated housing units, aiming to improve efficiency and affordability in home construction.
In conclusion, the 2024 federal budget presents a comprehensive set of measures aimed at addressing housing affordability challenges in Canada. By leveraging federally owned land, extending mortgage amortization periods, and investing in housing infrastructure, the government seeks to make homeownership more accessible and protect affordable rental units. Additionally, initiatives such as the housing design catalogue and support for new building technologies aim to streamline construction processes and reduce costs. Overall, these efforts demonstrate a proactive approach to promoting a more inclusive and sustainable real estate market for all Canadians, in all markets, such as Markham, Unionville and Stouffville. Have questions about the federal budgets impact on Markham real estate and how it will impact your home for sale in Markham? Contact the experienced team at RE/MAX All-Stars Benczik Kavanagh Team for any questions or insight into the real estate market either locally in Markham, Unionville, Stouffville or anywhere in the GTA.
