No More HST On New Rental Housing Builds

There will be no more federal sales taxes (GST) charged on new rental housing builds effective immediately, according to Prime Minister Justin Trudeau. Ontario announced soon after that the provincial sales tax (PST) will also be removed as soon as possible. This means that soon in Ontario and some other provinces, soon there will be no HST charged on multifamily construction.

Is This A Good Time To Build Rental Housing?

These moves are an attempt to address a projected lack of housing in the future. Canada is already having a difficult time providing affordable housing to its residents in most urban centres. Windsor is no exception.

Rental affordability is expected to get worse if Canada’s population continues to grow through immigration at this pace. Canada admitted almost 500,000 new immigrants in 2022. At the same time, Canadian family sizes are getting smaller, meaning more units needed per person on average.

If Canada continues this trend until 2030, we would need over two million additional housing units. It seems like this trend will continue, because the federal government sees it as a solution to Canada’s aging population and lowering birth rates. To keep the economy going, Canada needs more young workers. The only place we can get young workers is from abroad. That is the theory at least. 

Whether you agree or disagree with that strategy, it has resulted in lowering taxes on new rental builds. This change comes at a time when the marketplace needs more units, and rental prices are high. Why not take advantage of these market conditions?

Looking To Build A Multifamily Home?

Everyone has to change up their game plan as market conditions change. If you are a single family dwelling builder who is looking to change up their strategy, or a family looking to generate income in Windsor Essex, give me a call at 519-300-6464. I can help you develop the path forward, and find the location for your new multifamily or apartment build.