Canada Federal Budget

Housing affordability takes centre stage. Canada’s federal government recently announced its 2024 budget, which largely outlined further spending increases and higher taxes. The government plans on spending roughly $53 billion over five years, which it expects to fund through stronger economic growth and raising taxes from 50 per cent to 67 per cent for all capital gains realized annually above $250,000. Some spending measures allocate funds to defense, artificial intelligence, education, childcare and health initiatives. However, the largest share of the budget will be directed toward housing, specifically increasing the supply of purpose-built rentals and protecting affordable housing options. This comes after housing affordability hit an all-time low in 2023 amid the combination of rising interest rates and historic population growth outpacing supply. While these policies are a step in the right direction, solving housing affordability is still a long ways away.