Election Spotlight: Conservative and Liberal Promises on Real Estate in the 2025 Canadian Federal Election

With the Canadian federal election set for April 28, 2025, the political landscape is heating up as parties vie for votes in a tight race. Today, on April 1, 2025, the campaign is officially underway, and two of the major contenders—the Conservative Party, led by Pierre Poilievre, and the Liberal Party, led by Prime Minister Mark Carney—are neck-and-neck in the polls. For many Canadians, especially those in British Columbia (BC) where real estate challenges are front and center, housing and property-related policies are key issues that could sway their vote. In this Election Spotlight, we’ll break down what the Conservatives and Liberals have promised so far regarding real estate, focusing on how their plans might impact BC and Canada as a whole. No fluff, no favoritism—just the facts as they stand.

The Context: Why Real Estate Matters

Real estate has been a hot-button issue across Canada, but it’s especially critical in BC, where skyrocketing home prices, limited supply, and affordability concerns dominate conversations. Vancouver consistently ranks among the least affordable cities globally, and even smaller markets like Kelowna and Victoria have seen prices soar beyond reach for many residents. Add in factors like interest rates, population growth, and the economic fallout from U.S. tariffs under President Donald Trump, and it’s clear why housing is a make-or-break topic in this election. Both parties know this and have tailored promises to address it—though their approaches differ.

Conservative Party: Pierre Poilievre’s Vision

Pierre Poilievre, a seasoned MP with a populist streak, has made housing and economic growth a cornerstone of his campaign. The Conservatives are pitching a plan that emphasizes cutting red tape, boosting supply, and tackling affordability through market-driven policies. Here’s what they’ve promised that could affect real estate in BC and beyond:

• “Shovel-Ready Zones” for Faster Development: Announced on March 20, 2025, Poilievre wants to create pre-approved zones for major projects, including housing developments. The idea is to slash bureaucratic delays—think years of permitting—and get homes built faster. In BC, where land availability is constrained by geography and zoning, this could mean more multi-family units or suburban sprawl if local governments play ball. Critics argue it might override municipal control, potentially leading to haphazard growth.
• Incentives for Homebuilding: Poilievre has tied federal infrastructure funding to housing starts, promising to reward cities that build more homes. For BC, this could pressure places like Vancouver and Surrey to ramp up construction, though it’s unclear how this squares with local resistance to density or the province’s own housing targets.
• Tax and Regulation Cuts: The Conservatives want to reduce taxes and regulations broadly, which they say will free up capital for developers. On March 17, 2025, Poilievre pledged to scrap the carbon pricing law, arguing it hikes construction costs. In BC, where green building standards are strict, this could lower expenses for builders—but it might also clash with the province’s climate goals, sparking debate.
• Capital Gains Tax Exemption for Reinvestments: On March 30, 2025, Poilievre announced the “Canada First Reinvestment Tax Cut,” a policy that would defer capital gains taxes for individuals or businesses who reinvest proceeds into Canadian assets, including real estate, until they cash out or move the money abroad. Set to run from July 1, 2025, to December 31, 2026, with a potential extension if it sparks an economic boom, this could encourage investors to sell foreign-held properties and reinvest in Canadian housing projects. In BC, this might spur development, especially in multi-unit residential buildings, as investors seek to defer taxes by funding new construction. However, there’s a risk this could drive more investment into high-end properties rather than affordable housing, given the lack of specific affordability mandates. The policy is projected to cost $10.5 billion over the 2025-2026 and 2026-2027 fiscal years, raising questions about its long-term fiscal impact.

The Conservative pitch is straightforward: government overreach is choking supply, and deregulation—coupled with tax incentives like the capital gains deferral—will fix it. It’s a market-driven approach that could accelerate construction in BC’s urban centers and suburbs, especially if investors redirect capital into housing. However, there’s no guarantee developers will prioritize affordable units over luxury condos, and the plan leans heavily on private sector goodwill. Plus, with Trump’s tariffs looming, Poilievre’s focus on resource projects might divert attention from housing unless he ties the two together explicitly.

Liberal Party: Mark Carney’s Approach

Mark Carney, the former Bank of Canada governor turned PM, is a political newbie but brings a technocratic vibe to the Liberal campaign. His party’s real estate promises blend targeted incentives with broader economic stability, reflecting his finance background. Here’s what the Liberals have on the table:

• GST Break for First-Time Buyers: On March 20, 2025, Carney announced the elimination of GST on homes sold to first-time buyers for $1 million or less. In BC, where the average detached home in Greater Vancouver hit $2 million years ago, this won’t touch most single-family houses. But it could help condo and townhouse buyers in markets like Burnaby or Langley, shaving thousands off purchase prices. The catch? It’s a demand-side boost in a supply-starved region, which some worry could inflate prices further.
• Housing Investment via Infrastructure: Carney’s March 20 announcement also included $187 million to rebuild Jasper National Park, hinting at a broader strategy to pair housing with infrastructure spending. While not BC-specific, this suggests Liberals might funnel federal cash into transit-oriented developments—like along Metro Vancouver’s SkyTrain lines—to unlock more homes. Details are thin, though, and BC’s already strained construction capacity could limit impact.
• Centrist Shift on Policy: Carney’s ditched some of Justin Trudeau’s progressive flair, promising on March 23 to “spend less and invest more.” This could mean redirecting funds from social programs to housing initiatives, though he hasn’t spelled out how. In BC, where provincial NDP policies already push affordability, Liberals might lean on partnerships rather than bold new federal moves.

Carney’s plan banks on stabilizing the economy—key with U.S. trade tensions—while nudging the housing market along. It’s less about sweeping deregulation and more about surgical boosts to buyers and builders. In BC, the GST cut could make a dent for entry-level buyers, but without a massive supply increase, critics say it’s tinkering around the edges of a deeper crisis.

What’s at Stake for BC and Canada

Both parties are addressing real estate, but their lenses differ. Conservatives want to unleash the market, betting that less government and tax incentives like the capital gains deferral will mean more homes. Liberals aim to steer it, using tax breaks and strategic investments to ease access. In BC, where land, labor shortages, and local politics complicate every project, neither plan fully grapples with the scale of the challenge—think 50,000 new units a year just to keep up with demand, per some estimates.

For Canada broadly, the election’s timing amid Trump’s tariff threats adds a wrinkle. Construction costs could spike if materials like lumber get hit, undercutting both parties’ promises. Poilievre’s resource focus and reinvestment tax cut might cushion that blow by prioritizing domestic production, while Carney’s trade savvy (he’s already touting an EU deal) could diversify supply chains. Neither has detailed this yet, but it’s a lurking factor.

The Bottom Line

As of April 1, 2025, the Conservative and Liberal real estate platforms are still taking shape—expect more specifics as the campaign rolls on. Poilievre’s deregulation and capital gains deferral could shake up BC’s housing logjam, but risks missing affordability targets if investors chase profits over social good. Carney’s buyer-friendly tweaks might help first-timers, yet fall short on supply. Neither is a silver bullet, and both face execution hurdles in a province where geography, costs, and politics defy easy fixes. Voters in BC and across Canada will have to weigh which approach—or which leader—feels more credible when they hit the polls in 27 days. Stay tuned; this race is far from over.

Posted on April 1, 2025, at 10:29 AM PDT