Subhead:Desjardins warns that the federal GST cut for new homebuyers, while decreasing initial costs, may drive up demand and prices if housing supply doesn’t increase — possibly negating the cost-savings.#
A new report suggests that the federal government’s plan to remove GST for first-time homebuyers could increase prices, a finding not ascertained by the Parliamentary Budget Office.
Desjardins Economics warns that the federal GST reduction, while decreasing initial costs, may drive up demand and prices if housing supply doesn’t increase.
Housing starts nationwide need to reach 500,000 yearly in order to build millions of new homes by 2031, reported Blacklock’s. Only 227,697 homes were built last year.
