Spring Economic Update Takes Steps Toward More Comprehensive Plan for Housing Supply and Affordability

April 28, 2026 – Ottawa, ON – The Canadian Home Builders’ Association (CHBA) is pleased to see a broad swath of measures for residential construction, both new and continuing, in today’s Spring Economic Update from the federal government. CHBA has continuously called for a comprehensive approach to addressing Canada’s housing supply and affordability crisis. While more measures are required, and details must be formalized to ensure the announced measures have the intended impact, today’s Update shows further steps in that direction.

The Update reinforced the government’s commitment to provide direct tax relief to new housing through the Improving Housing Supply Act, which will give provinces and territories $1.7B to increase supply, ideally through reduced taxes. A positive agreement has already been signed with Ontario (though its implementation needs to be accelerated) to support the elimination of the HST, and, given the urgent need, CHBA looks forward to more agreements with other provinces – especially British Columbia, which faces similar challenges to Ontario. All other provinces can benefit from relief as well.

The Update also emphasized the need to address development charges (DCs), referencing the government’s commitment to provide $51B through the Building Communities Strong Fund to fund housing-supportive infrastructure. Jurisdictions with the highest DCs will be required to reduce them, and others with lower DCs will need to freeze or defer them. Again, an agreement has been signed with Ontario, and it is important that agreements with the other provinces be put in place rapidly.

Of great importance, and in line with CHBA recommendations, is the Update’s pledge to take action on the building code to reduce regulatory burdens, improve affordability, support factory-built housing, and shorten project timelines. This action will include strengthening the analysis of proposed building code and standards changes to better assess the cumulative impact on housing affordability – a major issue CHBA has been emphasizing.

The Update places major emphasis on supporting skilled trades, which will be somewhat useful to help build and renovate more homes, though the emphasis on Red Seal trades and unions will limit its applicability to residential construction. CHBA will continue to work with the government through initiatives referenced in the Update to seek additional refinement and/or programming that can more fully support the breadth of residential construction’s specific needs. The Team Canada Strong Fund does hold some promise for home building, as it looks to support entry-level, trades-related work experience.

The Update also addresses another issue that CHBA has advised home builders and developers are facing: the increasing difficulty in securing construction financing. The Update announces intentions to create new construction financing opportunities through amended mortgage insurance rules to support the construction of missing-middle housing like triplexes, fourplexes and multi-unit properties up to eight units. The Update also notes that the government intends to consult on possible additional financing measures to support the continued supply of more owner-occupied homes in advance of Budget 2026.

CHBA has long expressed concern over the excessively restrictive mortgage system, including the stress test, that has locked out well-qualified buyers for years, so it is pleased to see the Update state that the government is exploring ways to modernize mortgage products in line with best practices to improve access to homeownership.

“Overall, there is quite a bit in this update that continues the path towards a more comprehensive suite of measures required to truly increase housing supply and improve affordability,” said CHBA CEO Kevin Lee. “Many of these measures remain to be implemented, including some announced prior to the Update, so there is an urgent need to move quickly. Other measures appear to be headed in the right direction, but will require scrutiny once details are made available. Short-term relief on sales taxes and DCs (including the development of housing-supportive infrastructure) are also a good start, though those measures should be made permanent, especially regarding the GST. That said, CHBA is cautiously optimistic about the path forward.”

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About the Canadian Home Builders’ Association

The Canadian Home Builders’ Association (CHBA) is the voice of the residential construction industry in Canada, representing some 8,500 member firms across the country. Our membership spans new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders, and other professionals in the housing sector.