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With a new year now underway, Canadians can expect to see a variety of changes coming to federal, provincial and local government housing legislation in 2024. 

From updated taxes to revised urban planning regulations, new housing laws and policies will roll out across the country in the coming months. Several of these policies promise to boost much-needed housing supply, which remains at a critical shortage in both the resale and rental segments.  

Here are the new housing policies that you should know about in 2024. 

Last November, 115 brave Royal LePagers answered the call to step outside their comfort zones as participants in the ‘Ecuador Challenge for Shelter.’ Each trekker pledged to raise thousands of dollars in support of their local women’s shelter and national domestic violence prevention programs before setting out an epic trekking adventure. Camping in tents for four chilly nights and hiking for five days towards the base of Mt. Cotopaxi – one of the highest active volcanoes in the world – the team of fundraisers collected a staggering $1.7 million for the cause, setting a new record for the most money raised by a single Royal LePage Shelter Foundation event.

In an attempt to address the ongoing housing supply and affordability crisis in Canada, the federal government announced earlier this month that the Prohibition on the Purchase of Residential Property by Non-Canadians Act – otherwise known as the foreign buyer ban – will be extended for an additional two years. The Act was previously set to expire on January 1st, 2025, and has been extended to January 1st, 2027. 

Expect stable home prices through remainder of 2023 despite lower sales volumes

Third quarter highlights:

• Aggregate price of a home in Canada expected to increase 7.0% in Q4 2023 compared to same period last year, a slight decrease from the previous forecast of 8.5%
• National aggregate home price increased 3.6% year over year in Q3 2023, decreased 0.8% on a quarter-over-quarter basis
• Aggregate home prices in greater regions of Toronto and Vancouver posted modest quarterly declines in Q3 of 2.8% and 1.8%, respectively. Meanwhile, Greater Montreal Area posted 0.6% aggregate price increase quarter over quarter
• More than half (57%) of regional markets in the report posted a quarter-over-quarter decline in Q3 as activity softened
• Royal LePage applauds federal government’s GST rebate policy aimed at incentivizing new construction of purpose-built rental housing

Market Trends

Canadians are combining their buying power and co-owning homes with family and friends to combat unaffordability

High property prices, elevated interest rates and the rising cost of living has prompted many Canadians to rethink their lifestyle and housing needs. For some, this means pooling financial resources with other family members and friends in order to gain access to the housing market.

21% of GV investors do not own their primary residence — notably higher than the national average of 15%

Many Canadians are keen to get a foot on the investment property ladder. For some, that means prioritizing an income property ahead of their own home.

According to a recent Royal LePage survey conducted by Leger,¹ 21% of investors in the Greater Vancouver region do not own their primary residence (a combination of those who rent and live rent-free) – notably higher than the national average of 15% (14% in the GTA and 15% in the GMA). 54% of investors in the region say that they are likely to purchase an additional residential investment property within the next five years. This is higher than the national figure (51%), and those in the greater regions of Toronto (47%) and Montreal (52%).

Despite higher lending rates and lower levels of inventory, the desire to own a home in Canada remains strong, especially among those who see ownership as a way to support their financial future. Canadians continue to look to the housing market as a means of building generational wealth and an additional source of income, and many are planning to try their hand in real estate investing within the coming years.

According to a recent Royal LePage survey conducted by Leger,¹ 23% of Canadians who do not own a residential investment property say that they are likely to purchase one in the next five years, and more than half (51%) of current investors say that they are likely to purchase an additional residential investment property within the same time period. Overall, 26% of all Canadians, current investors or otherwise, plan to buy an investment property before 2028.

Warmer weather and sunnier skies are upon us. With the Victoria Day long weekend (aka the unofficial start to summer) on the horizon, thousands of Canadians are preparing to reopen the cottages for the season once again. Of course, you can’t just jump straight into enjoying a weekend away at the cabin without a little maintenance work first. Unwinterized properties that have been vacant for the last several months will need some love and attention to get them up and running again post-winter.

When it comes to putting money away to buy their first home, the federal government’s ‘tax-free in, tax-free out’ First Home Savings Account aims to give Canadians a helping hand.

As of April 1st, Canadians aged 18 or older who are purchasing their first home are eligible to enroll in a tax-free First Home Savings Account (FHSA). Introduced in the 2022 federal budget, the FHSA combines elements of a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP), allowing users to make tax-deductible contributions and tax-free withdrawals from the account for the purposes of saving for a home. 

Following a period of relentless buyer demand and fast-rising home prices during the pandemic real estate boom, Canada’s recreational markets are anticipating more subdued activity levels and price declines in 2023.

According to the recently-released Royal LePage 2023 Spring Recreational Property Report, the aggregate price of a single-family home in Canada’s recreational regions is forecast to decrease 4.5% in 2023 to $592,005, compared to 2022, as activity in the market wanes. This is due to reduced demand as a result of economic uncertainty and a lack of available housing stock, which has helped to keep prices stable. Despite a modest decrease expected this year, the national aggregate price would remain more than 32% above 2020 levels, after two years of double-digit price gains in the country’s recreational real estate market.