OTTAWA — Conservative Leader Pierre Poilievre has escalated his campaign promises in a significant bid to tackle Canada's escalating housing crisis. On Tuesday, he unveiled a plan to eliminate the Goods and Services Tax (GST) on newly constructed homes priced up to $1.3 million, should he emerge victorious in next month’s federal election.

In a video announcement, Poilievre underscored the urgency of his proposal, emphasizing that it would enable middle-class Canadians, especially those in high-cost cities like Vancouver and Toronto, to establish roots in their communities. He asserted that many families are being priced out of the towns and cities where they grew up, stating, “Canadians can no longer afford to live where they belong.”

The proposed GST exemption could save homebuyers as much as $65,000, representing a substantial financial relief in an era where housing prices have hit stratospheric heights. Previously, in October, Poilievre had suggested removing the GST for homes sold for under $1 million, but his current proposal marks an increased limit, reflecting the reality of today’s housing market.

This latest announcement comes in the wake of Prime Minister Mark Carney's matching pledge last week, which also sought to eliminate GST for first-time home buyers on homes valued at or under $1 million. Poilievre was quick to criticize Carney, suggesting that the Liberal party has borrowed his ideas as a desperate move ahead of the election. He tweeted, “Only months ago, Liberals voted unanimously against my idea of taking the GST off new homes. Now — a few days before calling an election — they plagiarize me again.”

Carney has faced scrutiny for adopting conservative policy positions, including efforts to remove the consumer carbon tax and delay a planned capital gains tax increase.

However, Poilievre believes that a $1 million home price threshold is no longer adequate in many Canadian markets. The latest statistics indicate that the median home price in the Greater Vancouver Area reached approximately $1,224,858 in February, while the Greater Toronto Area saw a median price of around $1,073,900. Such figures highlight the urgency for effective housing solutions.

To fund the proposed GST cut, Poilievre suggested discontinuing what he termed "bureaucratic" Liberal housing programs, such as the $4 billion Housing Accelerator Fund. He has also projected that the tax incentive could lead to the construction of an additional 36,000 homes annually, which is essential to address the housing supply crunch.

Real estate developer and housing advocate Chris Spoke acknowledged that while Poilievre's plan is a good initial step, it does not resolve the underlying issues constraining home building at the municipal and provincial levels. "Housing starts are collapsing in large parts of the country," Spoke noted, particularly in Ontario and Toronto. He pointed to restrictive land use regulations, cumbersome approval processes, and a high tax burden as significant barriers to new construction. “Eliminating the GST on new homes up to $1.3 million will certainly help at the margin in getting more housing built.”

As the election approaches, housing affordability remains a central issue for Canadians, making the outcome of Poilievre's bold proposal a key topic in the ongoing political discourse. The stakes are high as voters weigh the potential impact of such policies on their everyday lives and aspirations for home ownership.