Freeland Unveils $10 Billion Housing Plan in 2024 Federal Budget

The 2024 federal budget allocates $10B for housing initiatives, including a $4B Housing Accelerator Fund, to address the housing affordability crisis in Canada. The government aims to increase housing supply, offer more affordable options, and help more Canadians become homeowners.

Sakchi Khandelwal
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Freeland Unveils $10 Billion Housing Plan in 2024 Federal Budget

Freeland Unveils $10 Billion Housing Plan in 2024 Federal Budget

Finance Minister Chrystia Freeland tabled the 2024 federal budget on Tuesday, which includes $10 billion in new spending on housing initiatives over the next five years. The budget aims to make housing more affordable and accessible for Canadians amid soaring home prices and rental costs in many cities.

The centerpiece of the housing plan is a $4 billion Housing Accelerator Fund, which will provide funding to municipalities that speed up housing development and boost supply. The budget also earmarks $2.5 billion for a new Urban, Rural and Northern Indigenous Housing Strategy to address the unique housing challenges faced by Indigenous communities.

Other key housing measures in the 2024 budget include:

  • $1.5 billion to extend the Rapid Housing Initiative, which creates new affordable housing for vulnerable Canadians
  • $1 billion for a new Co-operative Housing Development Program to build more co-op housing units
  • $750 million to launch a Rent-to-Own program to help renters become homeowners
  • $500 million to double the First-Time Home Buyer's Tax Credit amount to $10,000

"Making housing more affordable is a top priority and a key part of our plan to grow the economy and make life more affordable for Canadians," Freeland said in her budget speech. "The measures in this budget will help build more homes, make housing more affordable, and give more Canadians a place to call home."

Why this matters: Canada is facing a housing affordability crisis, with home prices and rents rising much faster than incomes in recent years. The federal government's multi-billion dollar investment aims to increase housing supply, offer more affordable options, and eventually make housing more achievable for Canadians.

The budget also outlines the government's fiscal plan, projecting a deficit of $40 billion for 2024-25, down from $53 billion in the previous year. Freeland reiterated the government's commitment to reducing the deficit and returning to a balanced budget "over the medium term" as the economy recovers from the impact of the COVID-19 pandemic.

"This budget invests in the things that Canadians need - like housing - while being responsible with public dollars," Freeland stated. "Our fiscal plan is prudent, targeted and focused on building an economy that works for everyone."

Key Takeaways

  • $10B in new housing spending over 5 years, including $4B Housing Accelerator Fund
  • $2.5B for Indigenous housing strategy, $1.5B for Rapid Housing Initiative
  • $1B for Co-op Housing, $750M for Rent-to-Own, $500M for First-Time Buyer's Credit
  • Aims to increase housing supply, affordability, and homeownership for Canadians
  • Deficit projected at $40B for 2024-25, down from $53B, with plan to balance budget