Housing affordability has surpassed trade conflicts as the primary economic concern weighing on Canadians' minds, according to the latest consumer expectations survey from the Bank of Canada.
The dramatic shift in public anxiety marks a significant turning point in Canada's economic conversation. Just a year ago, U.S. trade tensions dominated headlines and dinner table discussions. Today, those fears have faded into the background as Canadians grapple with more immediate pressures: inflation, employment security, and the rising cost of putting a roof over their heads.
"What's really interesting over the last few months is that the trade issue has actually receded from the list of concerns," noted CTV News Chief Political Correspondent Vassy Kapelos at the Canadian Mortgage Brokers Association Ontario Annual Conference in Toronto. "Now the big concern is jobs, the economy, and affordability. Those have risen back to the top of the list."
The shift appears to have caught the attention of Ottawa. Prime Minister Mark Carney's government has pivoted its messaging and policy announcements squarely toward the housing crisis, signalling that domestic affordability pressures now trump international trade considerations.
Government Playing Catch-Up on Housing Supply
Despite government pledges to tackle the housing shortage head-on, results have been underwhelming. The Liberal government set an ambitious goal to double housing supply, yet the needle has barely moved.
"The problem is it's not doing what they said it would do, which is significantly and drastically impacting supply," Kapelos explained. "I'm curious to see what more they feel they can put in the window there."
One telling example illustrates the gap between policy intent and real-world impact. The federal government initially introduced a GST exemption on new homes under $1 million purchased by first-time buyers—a modest measure that opposition critics argued should have been broader. Housing ministers defended the cautious approach at the time, suggesting they should wait to see if other measures worked first.
A year later, facing mounting pressure and disappointing results, the government has taken the very step it previously resisted: expanding the tax break to all new home buyers in Ontario through an HST rebate, not just first-time purchasers.
Details Still Murky
What remains unclear is whether this expanded approach will actually translate into more homes being built and more affordable prices for Canadian families. The announcement has been light on specifics, particularly regarding how the federal portion of the rebate will function in practice.
"The interesting part of this announcement—which is potentially very consequential—is that nobody really provided anybody with the details," Kapelos said. "I couldn't tell you, after asking multiple times, how this is going to work, who it's going to apply to, at what point it kicks in, or how retroactive it is on the federal side."
The lack of clarity partly reflects the reality of government operations: changes to the Canadian tax code require formal legislation to proceed, a process that demands time even for majority governments.
As summer approaches and free trade negotiations with the United States and Mexico are set to intensify, Ottawa appears determined to keep the spotlight on domestic housing solutions. Whether these expanded tax measures will move the needle on supply—or merely provide temporary relief without addressing the fundamental shortage—remains an open question for Canadian homebuyers and renters alike.
This article is based on reporting from Canadian Mortgage Trends. Read the original article here.