* Boosting demand for new homes is essential to increasing housing supply, as without sufficient demand, new housing projects won’t get built. Supply-side policy must begin with demand-side activation targeted at *new* homes, not existing ones.
* Canada’s tax and regulatory systems favour existing homes over new construction. New homes face significantly higher construction taxes than those built 20 years or more ago.
* To meet our housing targets, we must rebalance the system toward new construction. Policy must intentionally tilt the scales in favour of tax and regulatory reforms to encourage building.
* An increase in demand for *existing* homes causes home price inflation. The solution to that inflation is to increase the supply of new homes. Policies, like GST reform, that incentivize new construction, are the answer. **In other words, more generous GST rebates are the cure to home-price inflation, not the cause.**
Are these “construction taxes” the ordinary taxes on any business applying to construction companies, or is Canada putting specific taxes on new construction?
2 Comments
* Boosting demand for new homes is essential to increasing housing supply, as without sufficient demand, new housing projects won’t get built. Supply-side policy must begin with demand-side activation targeted at *new* homes, not existing ones.
* Canada’s tax and regulatory systems favour existing homes over new construction. New homes face significantly higher construction taxes than those built 20 years or more ago.
* To meet our housing targets, we must rebalance the system toward new construction. Policy must intentionally tilt the scales in favour of tax and regulatory reforms to encourage building.
* An increase in demand for *existing* homes causes home price inflation. The solution to that inflation is to increase the supply of new homes. Policies, like GST reform, that incentivize new construction, are the answer. **In other words, more generous GST rebates are the cure to home-price inflation, not the cause.**
Further reading:
[Is Canada setting itself up for a big home price spike in 2030? | Financial Post](https://financialpost.com/real-estate/canada-setting-itself-up-big-home-price-spike-2030)
[A 1% tax cut isn’t tax reform or needle-moving for Canadians | Financial Post](https://financialpost.com/personal-finance/taxes/1-tax-cut-isnt-reform-needle-moving-most-canadians)
[Council votes to allow sixplexes in 9 Toronto wards, leaving suburbs to opt in | CBC News](https://www.cbc.ca/news/canada/toronto/sixplexes-toronto-approved-9-wards-1.7571079)
[How Toronto’s sixplex vote pushed density in the same areas – Toronto Star](https://www.thestar.com/real-estate/not-just-a-housing-crisis-downtown-how-torontos-sixplex-vote-pushed-more-density-in-the/article_9d78e360-e5b2-4d9d-bdce-4118c4e700c7.html)
Other news:
[Iranian officials are banned from Canada — but this former regime member landed in April | CBC News](https://www.cbc.ca/news/politics/former-iranian-regime-official-in-canada-1.7571903)
[As U.S. trade deal deadline looms, Ottawa begins to temper expectations – The Globe and Mail](https://www.theglobeandmail.com/business/economy/article-us-canada-trade-deal-negotiations-trump-carney/)
[National Newswatch | Statistics Canada says real GDP down 0.1 per cent in April as manufacturing slowed](https://nationalnewswatch.com/2025/06/27/statistics-canada-says-real-gdp-down-0-1-per-cent-in-april-as-manufacturing-slowed)
[National Newswatch | Controversial legislation to fast-track major projects, Bill C-5, becomes law](https://nationalnewswatch.com/2025/06/26/senate-passes-controversial-bill-to-fast-track-major-projects)
[National Newswatch | Premier Smith says Albertans’ desire for leaving Canada has never been higher](https://nationalnewswatch.com/2025/06/26/premier-smith-says-albertans-desire-for-leaving-canada-has-never-been-higher)
!ping Can&YIMBY
Are these “construction taxes” the ordinary taxes on any business applying to construction companies, or is Canada putting specific taxes on new construction?
If it’s the second that’s a gigantic L