Federal Budget 2025: Missed Opportunity to Support Homeownership in Canada’s Central Interior

The Canadian Home Builders’ Association – Central Interior (CHBA CI) says the federal government’s 2025 budget fails to address the core challenge facing Canadian families: the ability to afford and achieve homeownership.

While the new “Build Canada Homes” initiative focuses on homelessness and low-income housing, the national Canadian Home Builders’ Association (CHBA) notes that the program does not tackle the growing affordability gap for middle-income families seeking to own a home.

“We support efforts to expand government-assisted housing,” said Chris Crowell, President of CHBA Central Interior. “But this budget leaves behind the average working family — the ones trying to buy their first home or move within their community. Without strong policies to make ownership attainable, the housing crisis will only deepen.”

Government-Assisted Housing Focus Misses the Mark

While CHBA applauds the intent of Build Canada Homes to help those experiencing homelessness and in low-income situations, the Association highlights that it does not address the core affordability challenge faced by the average Canadian family aspiring to homeownership.

Although the federal government announced six initial Build Canada Homes pilot sites in Nova Scotia, Québec, Ontario, Manitoba, and Alberta, none are located in British Columbia — leaving the province without a presence in the first phase of this national housing initiative.

“The budget presented no new measures to address housing affordability for the average Canadian who still wants to become a homeowner.” — Canadian Home Builders’ Association

For builders, renovators, and tradespeople in the Central Interior, the implications are clear:

• The shift toward rental and government-supported housing means fewer resources and incentives to support new ownership-based product types — detached, semi-detached, and townhomes — that local families seek.
• Without stronger measures to expand ownership opportunities, pressure on supply in the resale market will persist, raising costs for both builders and buyers.
• The workforce that builds homes faces uncertainty: CHBA reports that 41% of builders nationally have reduced staff, 39% in British Columbia, and 64% in Ontario — mirroring trends seen across the country.

In Kamloops and the Thompson region, residential permits have slowed significantly, reflecting stalled projects and job concerns across the trades.

Limited GST Relief Still Not in Force

Budget 2025 includes a proposed First-Time Home Buyers’ GST Rebate, announced on May 27, 2025. Under the proposal:

• The federal GST (or federal portion of HST) would be fully rebated for first-time buyers purchasing new homes valued up to $1 million, and partially rebated for homes up to $1.5 million.
• The measure applies only to new homes, not to resale housing stock or existing homeowners.
• It does not extend to renovations that create additional housing units, such as secondary suites or garden suites.
• Importantly, the measure has not yet received Royal Assent and therefore is not currently in effect. Builders cannot yet apply the rebate at closing; buyers may only claim it retroactively once legislation is enacted.

CHBA National CEO Kevin Lee noted that while the rebate provides relief for first-time buyers, “it must be expanded to all buyers and substantial renovations — including secondary suites and accessibility upgrades that create new housing supply.” He also emphasized that the measure remains stalled because Bill C-4 has not yet received Royal Assent, preventing Canadians from accessing the benefit.

Other Tax Measures

In addition to the proposed GST relief, Budget 2025 also proposes to eliminate the federal Underused Housing Tax starting with the 2025 calendar year. This means there will be no return filing requirements or taxes payable for 2025 and future years under this program. While this change removes administrative burdens for property owners, CHBA CI notes that it does little to address the broader housing affordability challenges facing working Canadians.

What’s Missing in the Budget

According to the Canadian Home Builders’ Association, the 2025 Federal Budget fails to take bold action on several key fronts:

• Expansion of GST relief to all new-home buyers and to renovations that create additional housing units (such as secondary suites).
• Reduction of development taxation and municipal-level cost drivers, as the budget retreats from earlier commitments to work with municipalities to reduce development taxes by up to 50%.
• Meaningful support for the residential construction workforce amid ongoing labour shortages.

The budget introduces a new Build Communities Strong Fund with $17 billion in federal and provincial cost-shared funding for housing-enabling infrastructure. However, CHBA notes there are no targets, timelines, or firm commitments to ensure this translates into meaningful reductions in development charges for builders and homebuyers.

What the Central Interior Needs Now

In the Central Interior region, CHBA CI members require:

• Policy tools that encourage a diversity of new home-ownership product types to meet local demand.
• Provincial and federal collaboration to address land-development cost escalation and local servicing challenges.
• Training and workforce development programs that strengthen the residential construction sector.
  
  

Local Impacts

In communities across the Central Interior, builders and trades are already facing the compounded effects of high construction costs, limited land availability, and declining affordability. Without concrete action to expand ownership options, CHBA CI notes that homebuilding activity will remain below demand levels, pressure on the resale market will continue to escalate, and skilled-trade employment in the residential sector may decline further, following national trends that have already seen significant workforce reductions.

“Housing policy must look beyond rentals,” added Crowell. “Homeownership has moved out of reach for too many Canadians. We need real measures that bring it back within reach — policies that make it possible for working families to build equity and put down roots in their communities.”

CHBA CI joins CHBA National in calling for immediate legislative action on Bill C-4 and renewed federal focus on homeownership affordability, development cost reform, and workforce support. The Association will continue working with CHBA BC and CHBA National to ensure these priorities are front and centre heading into the spring 2026 economic update.

For more information or media inquiries:

Rose Choy
Executive Officer, CHBA Central Interior
Tel: 250-828-1844
Email: info@chbaci.ca