Today is truly about partnership, working for the people of Ottawa and the people of Canada. An example of what gets done when there’s focus and partnership.
The Mayor and I, I would say, have been partners from the very beginning. Literally, my first day as prime minister, the first thing I did after I got up was to go have breakfast at John’s Diner in Wellington West with the mayor to talk about shared priorities. Yours as mayor, mine as prime minister. And the first thing on both of our list was affordable housing, getting affordable housing, how we can build housing faster, more efficiently, more sustainably, and of course, at lower cost. Lower cost purchase, but also lower run cost for people in housing here in Ottawa and across Canada. Because when we build a stronger Ottawa, we build a stronger Canada, and our objective is a stronger Canada for all. And that foundation is the home. The home is the foundation of a good life. And yet, for too many Canadians, housing has remained out of reach for too long. Now, there has been some progress over the course of the past year. I think it’s important to recognize, to track where we are and whether we’re making progress.
By the end of last year, at the start of this year, housing affordability in Canada had begun to improve from very unaffordable levels, but had begun to improve and in fact had improved over the course of the last 24 months, the longest streak recorded. The percentage of income that Canadians are spending on mortgage payments is now at their lowest level in four years. Asking rents are down to a 35-month low. The rent income ratio its lowest level in over six years. So, some encouraging signs, but starting from very high levels or, put it a different way, levels of unaffordability. So, there’s still much, much work to do. The reality is that for decades, Canada has just not built enough affordable housing, and now Canadians are paying the price, particularly young Canadians. And what has been built over decades often has, the overall costs have been driven up by development charges, taxes, high construction costs. And the average Canadian household is still spending more than half of their income on mortgage payments. So, those mortgage payments are starting to come down. But it’s still, as I said a moment ago, high levels.
We need all hands on deck to address these challenges. That’s why, back in September, our government launched Build Canada Homes – a new federal entity that will supercharge housing construction across Canada. It is doing that in threeways. First, by partnering with the private sector to plan, manage and construct new affordable housing and to fast-track large-scale housing projects across the country. Second, by providing predictable, low-cost financing to support non-marketand Indigenous housing providers to grow affordable and community housing in Canada. And third, by catalysing the creation of an entirely new Canadian housing industry that uses modern building methods like factory-built and prefabricated construction.
So, since its launch in September of last year, just September of last year, Build Canada Homes has already committed to more than 10,000 new units through 13 partnerships across Canada, with over 1400 homes already under construction or breaking ground in the next two months. That means new affordable homes in Ottawa, Toronto, Winnipeg, Edmonton, Gatineau and Halifax. And to build on this momentum and to further lower the cost of building affordable homes, Canada’s new government tabled legislation to unlock $1.7 billion in federal funding for the provinces and territories. Through the Build Communities Strong Fund, we’re investing billions to build housing-enabling infrastructure and reduce municipal development charges, charges that the buyers of new homes ultimately pay.
Last month, we put that funding to work through a new agreement with Ontario, and this agreement will enable municipalities to cut development charges in half for three years, reducing the upfront costs of homebuilding and giving builders the certainty that they need to build. So, here in Ottawa, this measure alone, one measure alone, could bring down the cost of building a two-bedroom apartment by more than $15,000 and a new average single-family home by more than $28,000. And to further bring down costs for the Canadians who are buying those homes or who are renting those homes, we’ve eliminated GST on homes for up to $1 million for first-time home buyers, saving Canadians up to $50,000 on the purchase of their first home. That tax cut now passed officially came into place last month. And we’re working with the provinces and territories to further multiply those savings. With the help of new federal funding, the government of Ontario is matching the government’s GST cut with a provincial HST relief on all new homes valued at up to $1 million. So, what does that mean here in Ottawa? It means saving buyers in Ottawa as much as $130,000 on the purchase of their new home. If you combine that with the development charge reduction, that could mean as much as $158,000 in savings. Real money back in the pockets of Canadians. It’s a clear example of what governments can do when they focus and when they work together.
In December, as the mayor just said, Mayor Sutcliffe and I announced an ambitious new partnership between Build Canada Homes and the City of Ottawa. A partnership to accelerate the construction of up to 3,000 affordable and mixed-income homes in Ottawa through a joint investment of $400 million. Under this agreement, the City of Ottawa will reduce or waive development charges, permit fees, and property taxes on priority projects for 2,000 new housing units. And through Build Canada Homes, our government will deploy financing to help unlock an additional 1,000 housing units in the City’s portfolio.
So, in December, the mayor and I made a commitment to build more homes faster for the people of Ottawa. Today, we’re proud to announce that Build Canada Homes has approved eight new housing projects that will build more than 1100 new rental homes in the city of Ottawa, already exceeding our original target by 10%. We’re fast-tracking these projects to get shovels in the ground in the next few months, shovel in the ground over there. And I want to thank Ottawa City Council for their unanimous vote of confidence in this work last evening. Construction right here on Geyser Place… Geyser Place will begin later this year. And this project… I covered them both, it’s Geyser. You say Geyser, I say Geyser. Tomato, tomato… This project will build more than… Well, it says 100 new rental units. Actually, I think Stephane, it’s closer to 118. 118 new apartments, homes for middle-class Canadians, for middle-class Canadians. Now, beyond here in Nepean, we’re building in Centretown, in Sandy Hill, in Overbrook, and Lincoln Heights. Homes across the city built by Canadians for Canadians.
It’s not just what we build. It’s how we build. We are building inclusively, in full partnership with First Nations, Inuit, and Métis. We are building in solidarity with workers, creating good union jobs. We are building sustainably, because reducing emissions is not just a moral duty, it’s an economic imperative. For example, this project will benefit from… What is it? Geothermal. Yeah. Heating and cooling. It’s dramatically lowering the costs for the residents. And above all, with our Buy Canadian Policy, we are building Canadian – with Canadian steel, Canadian lumber, and Canadian workers. That is how we build Canada strong. Through Build Canada Homes, our government is building at scale and speed so all Canadians have a safe and affordable place to call home. This is part of our larger economic plan to build a stronger, more sustainable, more resilient economy – one that delivers more certainty, security, and prosperity for all Canadians.
Now, it’s early days but our plan is working. Despite all the shocks, Canada is expected to have the second fastest growing economy in the G7 this year and next. Wages overall are growing now at twice the rate of overall inflation. But at the same time, we know that the cost of living is still high and we know that some of the biggest payoffs of our plan will take time. So, we’re supporting Canadians who are under pressure from everyday expenses with a boost today and a bridge to that better tomorrow. And that’s why we temporarily cut the federal fuel excise tax this week, bringing down costs at the pump by up to $0.10 per liter. Combined with our earlier elimination of the consumer carbon tax on day one of our government, we’ve lowered the price of gas by up to $0.28 per liter. We’ve cut income taxes for 22 million Canadians, saving families up to $840 each year. We’ve launched the Groceries and Essentials Benefit, which will deliver direct payments to more than 12 million Canadians, up to $1890 per family. That’s money deposited directly into bank accounts starting with the first cheques on the 5th of June. That’s how we’re building a Canada that’s not just strong, but good. A Canada that’s not just prosperous, but fair. Canada that’s not just for some most of the time, but for all, all of the time. A Canada where everyone can get ahead. We’re building Nepean strong, Ottawa strong, and Canada strong for everyone.
Thank you.
Today is truly about partnership, working for the people of Ottawa and the people of Canada. An example of what gets done when there’s focus and partnership.
The Mayor and I, I would say, have been partners from the very beginning. Literally, my first day as prime minister, the first thing I did after I got up was to go have breakfast at John’s Diner in Wellington West with the mayor to talk about shared priorities. Yours as mayor, mine as prime minister. And the first thing on both of our list was affordable housing, getting affordable housing, how we can build housing faster, more efficiently, more sustainably, and of course, at lower cost. Lower cost purchase, but also lower run cost for people in housing here in Ottawa and across Canada. Because when we build a stronger Ottawa, we build a stronger Canada, and our objective is a stronger Canada for all. And that foundation is the home. The home is the foundation of a good life. And yet, for too many Canadians, housing has remained out of reach for too long. Now, there has been some progress over the course of the past year. I think it’s important to recognize, to track where we are and whether we’re making progress.
By the end of last year, at the start of this year, housing affordability in Canada had begun to improve from very unaffordable levels, but had begun to improve and in fact had improved over the course of the last 24 months, the longest streak recorded. The percentage of income that Canadians are spending on mortgage payments is now at their lowest level in four years. Asking rents are down to a 35-month low. The rent income ratio its lowest level in over six years. So, some encouraging signs, but starting from very high levels or, put it a different way, levels of unaffordability. So, there’s still much, much work to do. The reality is that for decades, Canada has just not built enough affordable housing, and now Canadians are paying the price, particularly young Canadians. And what has been built over decades often has, the overall costs have been driven up by development charges, taxes, high construction costs. And the average Canadian household is still spending more than half of their income on mortgage payments. So, those mortgage payments are starting to come down. But it’s still, as I said a moment ago, high levels.
We need all hands on deck to address these challenges. That’s why, back in September, our government launched Build Canada Homes – a new federal entity that will supercharge housing construction across Canada. It is doing that in threeways. First, by partnering with the private sector to plan, manage and construct new affordable housing and to fast-track large-scale housing projects across the country. Second, by providing predictable, low-cost financing to support non-marketand Indigenous housing providers to grow affordable and community housing in Canada. And third, by catalysing the creation of an entirely new Canadian housing industry that uses modern building methods like factory-built and prefabricated construction.
So, since its launch in September of last year, just September of last year, Build Canada Homes has already committed to more than 10,000 new units through 13 partnerships across Canada, with over 1400 homes already under construction or breaking ground in the next two months. That means new affordable homes in Ottawa, Toronto, Winnipeg, Edmonton, Gatineau and Halifax. And to build on this momentum and to further lower the cost of building affordable homes, Canada’s new government tabled legislation to unlock $1.7 billion in federal funding for the provinces and territories. Through the Build Communities Strong Fund, we’re investing billions to build housing-enabling infrastructure and reduce municipal development charges, charges that the buyers of new homes ultimately pay.
Last month, we put that funding to work through a new agreement with Ontario, and this agreement will enable municipalities to cut development charges in half for three years, reducing the upfront costs of homebuilding and giving builders the certainty that they need to build. So, here in Ottawa, this measure alone, one measure alone, could bring down the cost of building a two-bedroom apartment by more than $15,000 and a new average single-family home by more than $28,000. And to further bring down costs for the Canadians who are buying those homes or who are renting those homes, we’ve eliminated GST on homes for up to $1 million for first-time home buyers, saving Canadians up to $50,000 on the purchase of their first home. That tax cut now passed officially came into place last month. And we’re working with the provinces and territories to further multiply those savings. With the help of new federal funding, the government of Ontario is matching the government’s GST cut with a provincial HST relief on all new homes valued at up to $1 million. So, what does that mean here in Ottawa? It means saving buyers in Ottawa as much as $130,000 on the purchase of their new home. If you combine that with the development charge reduction, that could mean as much as $158,000 in savings. Real money back in the pockets of Canadians. It’s a clear example of what governments can do when they focus and when they work together.
In December, as the mayor just said, Mayor Sutcliffe and I announced an ambitious new partnership between Build Canada Homes and the City of Ottawa. A partnership to accelerate the construction of up to 3,000 affordable and mixed-income homes in Ottawa through a joint investment of $400 million. Under this agreement, the City of Ottawa will reduce or waive development charges, permit fees, and property taxes on priority projects for 2,000 new housing units. And through Build Canada Homes, our government will deploy financing to help unlock an additional 1,000 housing units in the City’s portfolio.
So, in December, the mayor and I made a commitment to build more homes faster for the people of Ottawa. Today, we’re proud to announce that Build Canada Homes has approved eight new housing projects that will build more than 1100 new rental homes in the city of Ottawa, already exceeding our original target by 10%. We’re fast-tracking these projects to get shovels in the ground in the next few months, shovel in the ground over there. And I want to thank Ottawa City Council for their unanimous vote of confidence in this work last evening. Construction right here on Geyser Place… Geyser Place will begin later this year. And this project… I covered them both, it’s Geyser. You say Geyser, I say Geyser. Tomato, tomato… This project will build more than… Well, it says 100 new rental units. Actually, I think Stephane, it’s closer to 118. 118 new apartments, homes for middle-class Canadians, for middle-class Canadians. Now, beyond here in Nepean, we’re building in Centretown, in Sandy Hill, in Overbrook, and Lincoln Heights. Homes across the city built by Canadians for Canadians.
It’s not just what we build. It’s how we build. We are building inclusively, in full partnership with First Nations, Inuit, and Métis. We are building in solidarity with workers, creating good union jobs. We are building sustainably, because reducing emissions is not just a moral duty, it’s an economic imperative. For example, this project will benefit from… What is it? Geothermal. Yeah. Heating and cooling. It’s dramatically lowering the costs for the residents. And above all, with our Buy Canadian Policy, we are building Canadian – with Canadian steel, Canadian lumber, and Canadian workers. That is how we build Canada strong. Through Build Canada Homes, our government is building at scale and speed so all Canadians have a safe and affordable place to call home. This is part of our larger economic plan to build a stronger, more sustainable, more resilient economy – one that delivers more certainty, security, and prosperity for all Canadians.
Now, it’s early days but our plan is working. Despite all the shocks, Canada is expected to have the second fastest growing economy in the G7 this year and next. Wages overall are growing now at twice the rate of overall inflation. But at the same time, we know that the cost of living is still high and we know that some of the biggest payoffs of our plan will take time. So, we’re supporting Canadians who are under pressure from everyday expenses with a boost today and a bridge to that better tomorrow. And that’s why we temporarily cut the federal fuel excise tax this week, bringing down costs at the pump by up to $0.10 per liter. Combined with our earlier elimination of the consumer carbon tax on day one of our government, we’ve lowered the price of gas by up to $0.28 per liter. We’ve cut income taxes for 22 million Canadians, saving families up to $840 each year. We’ve launched the Groceries and Essentials Benefit, which will deliver direct payments to more than 12 million Canadians, up to $1890 per family. That’s money deposited directly into bank accounts starting with the first cheques on the 5th of June. That’s how we’re building a Canada that’s not just strong, but good. A Canada that’s not just prosperous, but fair. Canada that’s not just for some most of the time, but for all, all of the time. A Canada where everyone can get ahead. We’re building Nepean strong, Ottawa strong, and Canada strong for everyone.
Thank you.
