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Sat October 20 2018

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Canadian budget earmarks $1.25bn more for rental housing

1 Mar Canada’s latest budget has announced an additional CA$1.25bn (£705m) of financing to spur construction of an extra 14,000 homes for rent.

Approximately 30% of Canadians rely on the rental market for housing and future demand for affordable rental housing is expected to rise as the population ages, young professionals migrate to larger cities, and immigration continues to grow communities.

In April 2017, Canada Mortgage & Housing Corporation launched the Rental Construction Financing Initiative, which will provide CA$2.5bn (£1.4bn) in low-cost loans to support the construction of new rental housing. To encourage a stable supply of affordable rental housing across the country, the government has said that it proposes to increase the amount of loans provided by the Rental Construction Financing Initiative from CA$2.5bn to CA$3.75bn (£2.11bn) over the next three years.

The new funding is intended to support projects that address the needs of modest- and middle-income households struggling in expensive housing markets. In total, this measure alone is expected to spur the construction of more than 14,000 new rental units across Canada.  

MPU

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