Although issues of affordability and cost-of-living have recently been superseded by President Trump’s threat of tariffs, these underlying issues haven’t gone away. Canada’s housing crisis continues to represent a significant threat in its own right to labour productivity, family formation, and various other important economic and social outcomes. Canada’s housing crisis is a product of supply constraints, capital misallocation, and tax policies that encourage hoarding rather than investment. If we’re serious about making housing more affordable and ensuring land is put to its best use, we need to rethink the way we tax real estate. That means phasing out the primary residence exemption from capital gains taxes, eliminating land transfer taxes, and introducing a real estate capital gains deferral mechanism (similar to the U.S. 1031 exchange) for reinvested real estate gains. These reforms will free up capital and land, making it easier to build the housing Canada desperately needs ... ...
A discussion on political, economic and social issues in British Columbia, and Canada