OTTAWA, October 28, 2024 — The Greater Ottawa Home Builders’ Association (GOHBA) expresses support for the Conservative Party pledge to increase the GST Rebate maximum home price threshold from $450,000 to $1 million.

 

“This is a 30-year ask of the residential construction industry – to honour the government’s original commitment to adjust the threshold to keep pace with market changes and ensure housing affordability,” said Jason Burggraaf, Executive Director at GOHBA. “But no adjustments have been made to this point, despite housing prices increasing by 270% from 1990 to 2023.”

 

Currently, government-imposed taxes and fees account for approximately 20% of the average new home cost in Ottawa. A significant portion of this burden comes from HST (especially with its tax-on-tax dynamic), which the federal GST Rebate program was intended to offset.

 

In Ottawa this change would mean that townhomes, which make up over 50% of new home sales, would be eligible for the full rebate, instantly making a significant improvement in housing affordability across the National Capital Region.

 

In the fall of 2023 GOHBA applauded the current government’s move on GST relief for purpose-built rental construction. Now it is time to take the next step and relieve the tax burden on all new housing supply by updating the price thresholds for the GST rebate program to real world property values. GOHBA also encourages the provincial government to match the Rebate for the provincial portion, just as it did on purpose-built rentals.

 

According to the Canadian Home Builders’ Association, it would only take an 18% increase in housing starts to cover the foregone revenue from doubling the GST thresholds.

 

“Increasing the GST Rebate threshold will support affordability, increase housing supply, and restore fairness to current and future generations of homebuyers,” said Burggraaf.

 

GOHBA remains committed to advocating for policies that promote housing affordability and supply for Ottawa’s residents, now and into the future.

Media Contact

 

For more information, please contact:
Jason Burggraaf, Executive Director

jason@gohba.ca

 

About GOHBA

 

The Greater Ottawa Home Builders’ Association has been the proud voice for excellence in the home building community since 1951. Builders, developers, renovators, trade contractors, suppliers and manufacturers make up the core of the Association’s membership of over 430 companies. New home construction and professional renovation account for more than 38,000 jobs, $2.7 billion in wages and $5.7 billion in economic investment across Ottawa.