The federal government tabled Budget 2025 on November 4, 2025. Its housing chapter, “Supercharging Home Building Across the Country,” focuses on building more supply.
Why supply
The budget cites a CMHC estimate that home building must nearly double to between 430,000 and 480,000 units per year over the next decade to restore affordability to 2019 levels. It notes that land, development charges and taxes can make up close to half of project costs.
Key measures
- Build Canada Homes: an initial $13 billion over five years, starting in 2025-26, for the agency launched on September 14. Its first project is 540 new homes at Arbo Downsview in Toronto, at least 40% of them affordable.
- Multi-unit rentals: the Canada Mortgage Bond annual issuance limit rises from $60 billion to $80 billion starting in 2026, only for multi-unit housing.
- GST for first-time buyers: the budget confirms eliminating GST on new homes up to $1 million and reducing it between $1 million and $1.5 million. The measure is before Parliament in Bill C-4.
- Skilled trades: $75 million over three years to expand union-based apprenticeship training.
- Indigenous housing: $2.8 billion confirmed for urban, rural and northern Indigenous housing.
What it means for Calgary
Cheaper financing for multi-unit rentals could add more purpose-built rental supply, which CREB already links to slower condo demand in Calgary. First-time buyers of new homes stand to benefit most from the GST measure.
The supply gap
Two estimates frame the chapter. CMHC says home building must nearly double, to between 430,000 and 480,000 units a year over the next decade, to restore affordability to 2019 levels. The Parliamentary Budget Officer estimates that 290,000 units a year would be needed to close the housing supply gap. The budget says builders face expensive loans, multi-year permitting delays and land, development charges and taxes that can make up close to half of project costs, along with little productivity growth in construction over the past 25 years.
Homes needed per year in Canada, estimates cited in Budget 2025
Financing for rental construction
The Canada Mortgage Bond change is aimed at builders of multi-unit housing. By raising the annual limit from $60 billion to $80 billion from 2026, the government expects lenders to have more access to low-cost mortgage funding and to support the construction of thousands of new units a year. The increase applies only to multi-unit housing.
Canada Mortgage Bond annual issuance limit, $ billion
Build Canada Homes and co-ops
The budget funds Build Canada Homes with $13 billion over five years. On October 17, the agency launched a request for qualifications for its first project, 540 homes at Arbo Downsview in Toronto, at least 40% of them affordable, supported by up to $283 million from the Canada Housing Infrastructure Fund for a nearby sewer upgrade. The budget also notes that a co-op housing program allocated $423 million this year for eight buildings with 837 homes.
What it means for Calgary buyers and sellers
First-time buyers of new homes in Calgary could save up to $50,000 through the GST measure, once Bill C-4 passes, for homes up to $1 million, with partial relief up to $1.5 million. That makes new construction more attractive compared with resale for eligible buyers, which resale sellers of similar homes should keep in mind. Cheaper rental construction financing could add even more purpose-built rentals in a city where CREB already links rising rental supply to slower condo demand.
Local angle
In Calgary, condo and row inventories were at October records in the latest CREB data. More rental supply is good news for renters, but condo owners and investors should expect continued competition.
The budget also confirms $2.8 billion for urban, rural and northern Indigenous housing, and $75 million over three years from 2026-27 to expand union-based apprenticeship training in the Red Seal trades.
