Canada is further tightening immigration rules to combat housing crisis

The nation's new prime minister, Mark Carney, has announced the Liberal government's plan to cap the number of international students and temporary foreign workers further.

This step will help "ease strains" on housing in Canada.

Carney shared several updates during a press conference on Friday morning:

Federal trade barriers

Federal barriers to internal trade will be removed by July 1 to "unleash the full potential of Canada."

"We will work with provinces, territories and indigenous groups to identify projects that are in the national interest, projects that will connect Canada, deepen our ties with the world, and grow our economy for generations," he said.

"We'll make the Canadian government a catalyst for these projects, not an impediment, and we'll always be guided by our condition."

Housing in Canada

Many housing initiatives were also announced, including establishing a plan called "Build Canada Homes," which will give private developers $25 billion to build more housing.

Additionally, GST will be cut on new homes between $1 million and $1.5 million, allowing first-time buyers to save up to $50,000.

Multi-unit housing development charges will also see cost reductions. "That's about $40,000 off the cost of a two-bedroom apartment in Toronto," said Carney.

Developers in Ontario have formed a coalition begging for tax breaks and promising it will translate to lower home prices https://t.co/2X7QCDhkWc

— blogTO (@blogTO) August 1, 2024

The Liberal government will create an entirely new Canadian housing industry in modular and pre-fabricated housing using Canadian technology, Canadian skilled workers and Canadian lumber.

"We will build houses faster at lower costs, with a smaller environmental footprint in construction and greater efficiency once families move in," the PM added.

Limiting immigration

To further shape the housing situation, the government will also return immigration to Canada to "sustainable levels." This means capping the number of international students and temporary workers to less than 5 per cent of Canada's population by 2027.

"It's a sharp drop from the recent high of 7.3 per cent," he said. "This will help ease strains on housing, on public infrastructure and social services."

"At the same time, we will work to attract the best talent in the world to build our economy. Canada has what everyone wants. We're a confident nation that celebrates our diversity, that believes in and practices free speech, that respects the rule of law, that has a vibrant democracy. We value innovators and builders. We trust science to protect our immense natural heritage."

The prime minister addressed Canadians living abroad who have been thinking about returning to build their lives in our nation: "There's never been a better time to come home."

The PM also noted that His Majesty King Charles III will visit Canada soon. He is scheduled to deliver a speech from the throne on May 27.