Blog: What Canada's New Budget Means for Real Estate

What Canada's New Budget Means for Real Estate

Key Housing & Real Estate-Related Measures

Here are the major housing/real estate items from Budget 2025:

A new federal agency called Build Canada Homes is being launched to help accelerate housing supply — the budget notes this will “drive investment and public-private cooperation” to build homes faster and smarter. (Budget Canada)
The budget emphasises building many more homes: it highlights that to restore affordability to 2019 levels, home-building in Canada must nearly double (from ~280,000 homes per year to ~430,000-480,000 homes per year over the next decade). (Budget Canada)
Increased support for multi-unit rental housing via expansion of the annual issuance limit for the Canada Mortgage Bonds (CMB) program — the limit is raised to $80 billion annually (from $60 billion). This is aimed at boosting liquidity for lenders and developers of five-unit+ rental properties. (Mortgage News Canada)
Additional funding of $2.8 billion for urban, rural and northern Indigenous housing over existing programs. (Mortgage News Canada)
The budget confirms the elimination of the Underused Housing Tax (UHT) for the 2025 calendar year and onward — meaning no UHT filings or payments will be required for 2025 +. (Mortgage News Canada)

What These Mean for the Real-Estate Market (Lower Mainland & Beyond)

Here’s how the above measures might play out across different segments of the market (for homeowners, buyers, investors) — with a local twist for places like the Lower Mainland / Fraser Valley.

Home Buyers

The push to build more homes (especially rentals and multi-unit housing) and the agency Build Canada Homes signal the government is trying to expand supply — this could help moderate upward pressure on prices in the medium term.
The UHT elimination is interesting: for owners who were worried about the tax on vacant/under-utilised property, the removal might reduce a cost risk — although this mostly affects non-resident owners or highly-specialised portfolios.
For first-time buyers in high-cost markets like Vancouver, Langley, Chilliwack etc., more rental supply and multi-unit build-outs may create better stepping-stone options (townhouses, row homes, rentals) rather than just detached homes.
But note: the budget doesn’t appear to introduce significant new direct subsidy programmes for detached-home buyers in high-price markets — much of the focus is on supply and rental/Indigenous housing. So affordability remains a challenge in tight markets.

Home Sellers & Homeowners

With more supply coming (especially rental and multi-unit), sellers in neighbourhoods with high new-build pipeline may face increased competition in coming years.
Upgrades and presentation may matter more: in markets like Lower Mainland where inventory is rising, homes that differentiate (condition, location, layout) may hold value better.
For homeowners holding property that might fall under “under-used” classification (vacancies, second homes etc.), the removal of UHT reduces one risk — though local/municipal vacancy taxes may still apply.

Investors & Multi-unit Developers

The expansion of the CMB programme to $80 billion is a strong green-light for rental and multi-unit development. Developers focusing on 5-unit+ properties (apartments, senior living, student residences) may benefit from improved access to financing or favourable mortgage market conditions.
The Build Canada Homes agency may offer new partnership opportunities: public lands, incentive-levers, faster approvals, innovative building methods could become more prominent.
Investors will want to keep an eye on how these supply-side expansions affect returns and cap-rates in markets (especially in secondary/suburban markets where new supply may cluster).

Local Implications for the Lower Mainland / Fraser Valley

The Lower Mainland remains a high-cost region with strong demand and limited detached-home supply. The federal supply push may help most in multi-unit segments (townhouses, condo-apartments, rentals) more than detached homes.
Sub-regions like Langley, Abbotsford, Chilliwack may stand to gain from more mid-density development (closer-in suburban growth, townhomes) since detached-home price growth may moderate and buyers may shift to alternatives.
For sellers of older homes, highlighting recent upgrades (furnace, roof, water-tank, secondary suites) and condition will support competitiveness since more options are being built.
For investors/developers in the region, the increased federal support for rental supply, multi-unit development and public-private partnerships may strengthen the viability of new developments and affordable-rental initiatives.

What to Watch (Risks & Uncertainties)

Timing & Implementation: Announcements are broad; actual project roll-out, approvals, construction timelines may lag. Supply increases may take years before effect.
Regional Variation: Federal programmes may help, but local zoning, municipal approvals, land costs remain a key bottleneck in regions like Metro Vancouver.
Affordability for Detached Homes: While supply efforts are strong, the budget doesn’t drastically change detached-home affordability (especially in hot markets). Buyers/sellers alike should remain realistic.
Interest Rate & Mortgage Environment: Mortgage rates, bank policies and the broader macroeconomic picture will still heavily influence real-estate activity — supply is only one side of the equation.
Local taxes/municipal policy: The UHT removal is federal, but local governments may introduce or retain vacancy taxes, encourage redevelopment etc. Owners/investors should monitor local measures.

Summary

Budget 2025 places housing supply at the heart of the real‐estate strategy: the aim is to dramatically increase housing units built, emphasise rental/multi-unit supply, and launch an agency (Build Canada Homes) to catalyse this.
For the real-estate market in the Lower Mainland / Fraser Valley: expect greater pressure in the multi-unit/rental segments, moderate shifts in detached home behaviour, and importance of condition/quality for existing homes.
For clients: Home-buyers should keep an eye on emerging multi-unit options and remain realistic about detached-home entry; sellers should emphasise value differentiators; investors/developers should explore rental/multi-unit opportunities and federal-programme participation.
While the budget is ambitious, the changes will likely play out over years — so market dynamics will evolve gradually rather than overnight.
Buyers, Sellers, Investors stay informed, consider how supply-side changes may impact your segment, and work with a local agent who understands how these federal shifts translate into local market conditions.