Carney set to further limit immigration to ease housing pressures

Prime minister Mark Carney has unveiled a sweeping set of reforms aimed at addressing Canada’s deepening housing crisis, including further limits on immigration and major investment in housing development.

Speaking at a press conference Friday morning, Carney confirmed the federal government would impose new caps on the number of international students and temporary foreign workers entering Canada, part of a broader plan to ease pressure on the country’s strained housing supply.

“It’s a sharp drop from the recent high of 7.3%,” Carney said, referencing the proportion of temporary residents relative to Canada’s population. “This will help ease strains on housing, on public infrastructure and social services.”

The Liberal government intends to reduce that figure to less than 5% by 2027. Carney emphasized that the approach does not signal a retreat from immigration but aims to restore balance. “At the same time, we will work to attract the best talent in the world to build our economy,” he said.

Housing initiatives

Alongside immigration measures, the government announced a series of housing policies under a new initiative titled “Build Canada Homes.” The plan includes $25 billion in support for private developers to build new housing units.

To increase affordability for prospective homeowners, the federal government will cut the GST on new homes priced between $1 million and $1.5 million. According to Carney, this change could save first-time buyers up to $50,000.

Additional cost relief will come from reduced development charges on multi-unit residential buildings. “That’s about $40,000 off the cost of a two-bedroom apartment in Toronto,” Carney said.

Another major component involves creating a domestic industry for modular and pre-fabricated housing. The initiative will prioritize Canadian materials, workers, and technologies, aiming to accelerate construction timelines and reduce environmental impacts.

“We will build houses faster at lower costs, with a smaller environmental footprint in construction and greater efficiency once families move in,” Carney said.

Economic and trade reforms

The government also plans to remove internal trade barriers by July 1, a move Carney said would “unleash the full potential of Canada.”

“We will work with provinces, territories and Indigenous groups to identify projects that are in the national interest, projects that will connect Canada, deepen our ties with the world, and grow our economy for generations,” he said.

Carney stressed that Ottawa would act as a facilitator, not a barrier, to economic growth and infrastructure development.

Looking ahead

In a message to Canadians abroad, Carney encouraged those considering a return to Canada to do so, describing this as a “better time to come home.”

He also confirmed that King Charles III will visit Canada later this month and deliver the speech from the throne on May 27, marking a ceremonial moment in a period of significant policy transformation.

Source: Canadian Mortgage Professional