How the Liberal Party Plans to Tackle Canada’s Housing Crisis: A Bold Vision for Affordable Homes and Skilled Jobs

As housing affordability continues to dominate national headlines, the Liberal Party of Canada has unveiled a sweeping plan to address the crisis. Their approach focuses not only on building more homes but also on making the construction process faster, more sustainable, and inclusive of both innovation and skilled labour.

Here’s a breakdown of their key proposals and how they aim to transform housing across Canada:

🏗️ Bringing Back a Proven Incentive: The MURB Program

The Liberals plan to reintroduce the Multi-Unit Residential Building (MURB) tax incentive, a policy originally implemented in the 1970s that led to tens of thousands of rental units being built. The goal is to once again stimulate private investment in purpose-built rental housing.

🏘️ Making Homebuilding More Affordable

To reduce construction costs and increase housing supply, the Liberals are proposing to:

• Cut municipal development charges by 50% for multi-unit residential projects for five years

• Eliminate the GST on homes under $1 million for first-time homebuyers

• Facilitate the conversion of existing structures into affordable housing units

These measures aim to ease the financial burden on both builders and buyers, helping to speed up development and make housing more accessible.

🏠 Accelerating Innovation and Prefab Construction

The Liberals are looking to catalyze the housing industry with over $25 billion in financing for innovative prefabricated home builders. This includes support for companies using Canadian technologies and materials like mass timber and softwood lumber. The goal: build faster, smarter, and more sustainably.

🏢 Build Canada Homes (BCH): A Federal Return to Homebuilding

In a major policy shift, the Liberals propose the creation of Build Canada Homes, a new initiative that would:

• See the federal government act as a developer on public lands

• Provide $10 billion in low-cost financing to affordable housing builders

This marks a return to direct federal involvement in homebuilding, aimed at scaling affordable housing supply.

❄️ Investing in Climate-Resilient Homes

An additional $1 billion will be invested to make homes more energy-efficient and resilient to extreme weather by powering them with affordable electric heating and cooling.

🛠️ Boosting Skilled Labour and Trades Training

Recognizing that housing construction relies on a strong skilled trades workforce, the Liberals plan to:

• Double funding for the Union Training and Innovation Program to $50 million annually

• Establish a new $20 million capital fund to help colleges expand apprenticeship training

• Continue the Apprenticeship Service Program, offering up to $10,000 per apprentice for eligible employers

• Increase labour mobility across provinces by breaking down internal trade barriers

• Incentivize companies to hire youth, requiring federal project partners to include roles for apprentices and new graduates

🧱 Cutting Red Tape and Streamlining Housing Approvals

To speed up the building process, the Liberals propose a national approach that:

• Builds on the Housing Accelerator Fund to reduce bureaucratic hurdles

• Simplifies national building codes and eliminates duplicative inspections

• Standardizes and pre-approves housing designs for use across public lands and municipalities

• Allows builders to apply for multiple projects at once

• Fast-tracks builders with a proven record

This would create a more unified and efficient system, replacing the current fragmented approach across 13 jurisdictions.

🌎 Building Stronger Northern and Indigenous Communities

To meet growing demand in northern and remote areas, the Liberals plan to invest in:

• New hydroelectric and energy infrastructure

• Ports, railways, airstrips, and highways with dual-use capability

• Housing stock improvements and accelerated development in the North

• Partnerships with Arctic and Northern Indigenous communities

They also pledge to continue working in partnership with Indigenous housing providers, and invest in deeply affordable and supportive housing, acknowledging the strong connection between housing and mental health.

A Holistic Approach to a National Challenge

This plan represents a multi-pronged strategy: invest in housing supply, support skilled trades, cut red tape, modernize building processes, and target affordability. With new incentives, federal leadership, and industry collaboration, the Liberal Party’s housing vision promises to address one of Canada's most pressing issues in a comprehensive and forward-thinking way.