May 1, 2025 | Community

What Does the Federal Election Mean for Real Estate In Our Local Market/Ontario

Canada’s 2025 federal election results are in: the Liberal Party, under the new leadership of Mark Carney, has secured another mandate. With the housing crisis a key issue during the campaign, all eyes are now on how the Liberals plan to address affordability, supply shortages, and real estate market dynamics.

In this blog, we’ll explore how the Liberal Party’s victory could reshape Canada’s housing market, why affordability challenges are likely to persist, and how smart planning can help families and investors navigate the future. While housing will remain expensive, now is the time to consider new strategies like multi-generational living and supporting the next generation of buyers.

Recap: The Liberal Housing Agenda for 2025

During the 2025 campaign, the Liberals introduced an ambitious housing platform aimed at tackling Canada’s affordability crisis. Key pillars include:

Build Canada Homes Plan: A promise to build 1.5 million new homes by 2030.
Foreign Buyer Ban Extension: Continued restrictions on non-resident purchases.
First-Time Homebuyer Support: Enhanced grants, tax credits, and down payment assistance.
Green Housing Incentives: Programs to retrofit homes for energy efficiency.
Rental Sector Investments: Expanded funding for purpose-built rental developments.

While these initiatives are promising, they are unlikely to immediately resolve the affordability crisis. Instead, buyers and sellers should prepare for continued market pressures—and adapt proactively.

Housing Supply: New Developments, Same Pressures

1. Increasing Housing Starts

The Build Canada Homes initiative aims to boost housing supply through faster approvals, zoning reforms, and infrastructure investments. While more homes will eventually hit the market, it will take years before the full impact is felt.

Key Realities:

New developments take time (often 3-7 years from planning to occupancy).
Labour shortages and high construction costs could delay projects.
Most new supply will still fall short of the booming demand.

Takeaway: More homes are coming, but not fast enough to drive prices down. Buyers and investors should think long-term and act sooner rather than later.

Affordability: Challenges Will Persist

1. Homes Will Remain Expensive

Despite government efforts, housing costs in cities like Toronto, Vancouver, Ottawa, and even smaller centers are expected to remain high. Factors such as immigration-driven demand, limited developable land, and inflation continue to push prices upward.

Realistic Outlook:

Modest price moderation in some markets.
Continued upward pressure in major urban and suburban areas.
Affordability will remain a major challenge for first-time buyers.

Strategic Thinking: Families should start considering:

Helping children with down payments (gifting or co-signing).
Exploring homes that can accommodate multi-generational living.
Looking into investment properties as a way to build wealth and secure future housing options.

2. First-Time Buyer Support

The Liberal government will enhance assistance programs such as:

First-Time Home Buyer Incentive
Tax-free savings accounts for home purchases
Higher RRSP withdrawal limits

These tools can help—but they will not make housing “cheap” again.

Action Plan: First-time buyers need to prepare carefully:

Save aggressively.
Get pre-approved early.
Remain flexible about location and property type.

The Rise of Multi-Generational Living

Given the high cost of homeownership, more families are turning to multi-generational living as a smart solution.

Why Multi-Generational Homes Make Sense

Affordability: Sharing mortgage and living costs.
Support: Aging parents benefit from being close to family.
Investment: Larger homes appreciate over time, offering greater wealth-building potential.

What Buyers Should Look For

Homes with separate entrances or basement apartments.
Floorplans that allow for privacy and shared spaces.
Properties zoned for secondary suites or additions.

Tip: Buying a larger property now may serve two or even three generations for years to come—creating flexibility and financial stability.

The Rental Market: Pressures and Opportunities

1. More Rentals Coming, But Rents Still High

With new federal funding for rental housing, more purpose-built rental units are on the horizon. However, just like ownership housing, new rental supply will take time to materialize.

Short-Term Outlook:

Vacancy rates will remain low.
Rents will continue to climb, especially in high-demand cities.

Opportunities for Investors:

Rental properties will remain a strong investment.
Secondary suites or basement apartments offer great income potential.

Foreign Investment: Cooling, But Limited Impact

Extending the foreign buyer ban helps curb some speculative demand, but the biggest pressures on Canada’s housing market are domestic.

High immigration levels.
Wealth transfer between generations.
Limited supply vs. high demand.

Bottom Line: Foreign buyer restrictions won’t solve affordability on their own. Local strategies and smart family planning are key.

Environmental Initiatives: A New Priority

The Liberals are also pushing for greener housing solutions:

Incentives for energy-efficient retrofits.
Requirements for greener new builds.
Funding for sustainable urban planning.

Why It Matters:

Energy-efficient homes lower utility bills.
Green upgrades can boost property values.
Future regulations could impact resale values for outdated homes.

Smart Move: Buyers should prioritize energy-efficient features or plan for future upgrades.

Regional Insights: Ontario’s Outlook

1. Toronto and the GTA

Prices will remain high.
Strong demand driven by immigration and limited land supply.

2. Secondary Cities (Hamilton, Guelph, London)

Growing appeal as buyers seek relative affordability.
More competition, especially for family-sized homes.

3. Rural and Northern Ontario

Infrastructure investments could open new opportunities.
Attractive for buyers prioritizing space and affordability.

Practical Advice for Buyers and Sellers

For Buyers:

Act early if you can.
Consider flexible living arrangements.
Focus on properties with rental or income potential.

For Sellers:

Highlight multi-generational features.
Invest in green upgrades to appeal to eco-conscious buyers.
Price competitively in a market that remains strong but cautious.

Conclusion: A Realistic but Hopeful Future

The Liberal Party’s 2025 win will keep housing at the forefront of Canada’s political agenda. However, despite ambitious plans, housing will remain expensive—and affordability challenges will persist.

That said, this is not a reason to despair. It is an opportunity to think creatively, plan carefully, and make smart real estate decisions that benefit your family now and for generations to come.

Multi-generational living is a growing trend that offers financial and emotional benefits.
Supporting the next generation through creative financing strategies is more important than ever.
Acting now can position families to thrive in a challenging, evolving market.

Housing in Canada may not become “cheap” again, but with the right approach, families and investors can still build security, wealth, and opportunity.

Want to learn more about the Liberal Party’s housing strategy? Visit https://liberal.ca/housing-plan/.

Ready to make your next move? Contact our real estate team today and start planning for your future!

Stay tuned to our blog for regular updates as the Liberal government begins implementing its housing agenda in the coming months!

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