Canadians Support Expansion of GST Relief on New Housing

March 20, 2026 – OTTAWA, ON – Public opinion research conducted by Abacus Data for the Canadian Home Builders’ Association (CHBA) shows Canadians feel the recently passed Bill C-4, which contains the GST rebate on new homes under $1 million and on a declining scale between $1-1.5 million for first-time buyers, is a step toward improving housing affordability—but the poll also shows that Canadians want and would support more.

The survey shows Canadians support CHBA’s recommendation to go further by extending the policy to all buyers of new homes. Nearly half (47%) of Canadians support expanding the GST on new housing, which extends across the political spectrum with 49% of Liberal supporters, 49% of Conservative supporters, and 47% of NDP supporters backing the idea. Moreover, after hearing that removing taxes on new housing could help increase construction and bring more homes to market, support for the expansion of the GST rebate to all buyers rises to 58%.

“CHBA continues to recommend that the recently passed GST relief for first-time buyers be extended to all buyers of new homes. This would enable move-up buyers and downsizing buyers to purchase new homes, which would both ensure a further boost of new housing supply and free up entry-level homes for first-time buyers in the existing housing market,” said CHBA CEO Kevin Lee. “CHBA also recommends including renovations that result in additional housing in the eligibility criteria, like accessory dwelling units and secondary suites, given they are important forms of new housing.”

It is important that the federal government continues to focus on policies to help reduce the direct cost of building and buying homes, especially when those policies are tied to increasing supply. Development charges (DCs) are a major underrecognized driver of the high cost of new housing in regions across the country, and 52% of those surveyed say current DC levels are unreasonable. A majority of those surveyed believe the DCs system needs reform, and 56% support shifting some of those costs across the broader tax base rather than loading them primarily onto new homebuyers. This points directly to the federal government’s need to fulfill its commitments to support housing-enabling infrastructure and help offset high DCs, which have yet to be implemented.

“With the federal government set to present an economic update in the spring, it is important that policymakers do not overlook the importance of having robust policies for homeownership. Our work with Abacus on public opinions regarding government action on homeownership clearly shows Canadians want and expect much more, and addressing the excessive taxation on housing is the place to start, especially right now with consumer confidence down and the cost of construction still on the rise,” said Lee.

For more information, CHBA’s full suite of recommendations to the federal government on how to improve housing supply outcomes and affordability is available at affordability.ca.

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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.