A new report on housing affordability is calling for a surtax on homes worth more than $1 million as a way to rein in skyrocketing home prices and fund affordable housing projects.
The report was published by Vancouver-based non-profit Generation Squeeze and received funding from the Canada Mortgage and Housing Corporation (CMHC) as part of the federal government's National Housing Strategy, which allocates money for housing policy researchers.
The proposal would establish an annual surtax starting at 0.2 per cent for houses worth more than $1 million and then increasing to 0.5 per cent and one per cent for more expensive homes.
For individuals with limited income, such as seniors, the report suggests that the taxes could be deferred until the house is sold or inherited.
An RBC report from last month found that housing affordability in Canada is at its worst in 31 years.
“If a pandemic-induced recession is insufficient to slow down home prices, then we can no longer ignore the probability that our housing system is actually structured, even if unintentionally, to grow housing values out of reach for local earnings," Generation Squeeze founder and University of British Columbia professor Paul Kershaw said in a news release.
Under current tax policies, all home sales are exempt from capital gains taxes as long as the house is the seller's principal residence. The report argues that these policies have essentially turned real estate into a massive tax shelter.
Generation Squeeze believes a surtax would help disincentivize the use of expensive homes as a tax shelter for the wealthy and cool down rising house prices. Approximately 13 per cent of Ontario homes and 21 per cent of homes in B.C. are worth more than $1 million, as well as nine per cent of all homes nationwide.
The report estimates that the surtax could generate $4.54 billion in annual revenue, or $5.83 billion if the tax rate started at 0.5 per cent rather than 0.2 per cent.
That money could be used to build housing co-ops and affordable purpose-built rental homes. The authors also want to see the federal government fund a program that would buy low-density housing units and redevelop them into affordable multi-family developments, also known as "missing middle" housing.
Generation Squeeze also proposes the federal government create a new savings bond that would encourage investors to develop more affordable "missing middle" housing.
The report also calls on the CMHC and the Canadian Infrastructure Bank to align their mandates and incentivize lenders to bankroll affordable and energy efficient housing. In addition, the report says Statistics Canada should change the way it calculates its Consumer Price Index to better reflect the increases in housing costs.
“There is no silver bullet to solve housing unaffordability,” Kershaw said. “Instead, we need silver buckshot to address the range of policy tools that shape the housing system, beginning from the recognition that restoring affordability for all requires home prices to stall so earnings can catch up.”
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
A recent decision to restrict consular services for fighting-aged Ukrainian men has made a Ukrainian man in Canada feel less certain of his next steps — and worried he could be pulled back to the war.
The practice of giving sedatives to people detained by police has spread quietly across the U.S. over the last 15 years, built on questionable science and backed by police-aligned experts, an investigation led by The Associated Press has found.
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
It’s arguably the biggest social housing scandal in Vancouver’s history and today the developer responsible for the Little Mountain project apologized for the multi-year delay that’s left a massive plot of land vacant during a housing crisis.
The roommate and long-time friend of the young man who was killed in White Rock Tuesday night, says he’s still in disbelief over what happened.
An inquest jury looking into the police shooting deaths of a man and the woman he was holding hostage has recommended that events involving the emergency response team be recorded with both video and audio.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Mauro Quattrochi is facing a decision shared by many in Toronto: commit to a “wallet-bursting life in the city, or a car-bound, almost-as-expensive life outside it?”
The TTC says riders using part of Line 2 can expect to face some delays this morning.
Seven people were taken to Calgary hospitals on Thursday for carbon monoxide exposure.
A Calgary man who worked as a senior financial advisor has been charged with fraud and theft after police say he misappropriated nearly $5 million from his clients.
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
This spring has been full of life in Almonte, as the local hospital has seen its biggest baby boom in recent memory.
CTVNewsOttawa.ca looks at things to do in Ottawa during the final weekend of April.
The supervisor of a 20-year-old man who died after he was electrocuted while trimming hedges in Manotick in May 2023 has been charged with criminal negligence causing death. Meanwhile, the company owner has pleaded guilty to a charge laid by the Ministry of Labour.
A Montreal-area family confirmed to CTV News that the body of their loved one who died while on vacation in Cuba is being repatriated to Canada after it was mistakenly sent to Russia.
Parks Canada said on Thursday that it was ending its pilot project and reinstalling garbage cans along the Lachine Canal Historic Site.
A 33-year-old man has been charged with second-degree murder in connection with the death of a woman in her 70s in Montmagny, in the Chaudière-Appalaches region of Quebec.
The Government of Alberta wants to change how municipalities handle elections and local politics.
It's a travel day for the Edmonton Oilers — and some of their fans are along for the ride.
A confirmed case of measles in Edmonton has prompted another plea from health officials for people to make sure vaccinations are up to date.
The New Brunswick RCMP say a wellbeing check that led to the rescue of three women from alleged human trafficking in Moncton earlier this month was the result of someone following their gut.
Canadian Border Services Agency (CBSA) officers arrested two Nova Scotia residents at the New Brunswick border after they seized multiple prohibited firearms.
Two teenagers have been charged with second-degree murder in connection to an alleged homicide near the Halifax Shopping Centre earlier this week.
A rural Manitoba school trustee is facing calls to resign over comments he made about Indigenous people and residential schools earlier this week.
Former Manitoba premier Heather Stefanson is resigning her legislature seat and leaving political life.
Manitoba RCMP have arrested a suspect in relation to a 2021 double homicide in a remote northern community.
Saskatchewan RCMP have made two arrests in a homicide investigation in the province's southeast.
The Weber family is being forced to travel to Toronto due to a lack of pediatric gastroenterologists (GIs) in the province. The family’s situation was highlighted by Saskatchewan’s official opposition.
The draft will take place on Tuesday, April 30, the Saskatchewan Roughriders currently hold the third overall pick.
A family of farmers say their operations would be significantly impacted if the Region of Waterloo goes ahead with a land assembly project in the Wilmot Township area.
A fatal crash in Thames Centre has closed down a portion of Highway 401 westbound. Around 2:15 a.m., first responders were called to westbound lanes of the highway between Culloden and Putnam Roads for a two-vehicle crash.
The trial for former neurologist Jeffrey (Scott) Sloka began two and a half years ago, and it remains unclear when there may be a verdict.
A Crown prosecutor says the former RCMP officer who shot and killed his lover should be sentenced to life in prison.
A private Christian school at the centre of a civil lawsuit and several criminal cases might soon be taken over by an affiliated group, according to a letter obtained by CTV News.
Saskatoon city council is making road safety improvements following the death of a cyclist at a busy intersection last year.
A years-long fraud investigation by the Ontario Provincial Police’s anti-rackets branch has resulted in fraud and other charges for the former head of BioNorth Technology Group, Frank Benincasa
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
A month after an accidental fire forced more than 100 people out of their apartments at the Empire Complex in Timmins, residents are now dealing with being victims of theft.
A fatal crash in Thames Centre has closed down a portion of Highway 401 westbound. Around 2:15 a.m., first responders were called to westbound lanes of the highway between Culloden and Putnam Roads for a two-vehicle crash.
On Thursday, Aamjiwnaang First Nation Chief Chris Plain declared a state of emergency due to the high levels of benzene.
The union representing western's graudate teacher's assistants says a tentative agreement has been reached with the university.
Prime Minister Justin Trudeau and Premier Doug Ford visited Alliston on Thursday to unveil a $15 billion investment in an electric vehicle and battery facility.
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
One person has been charged following a series of shootings in August and September in Bradford West Gwillimbury.
Canada's auto industry is experiencing a renaissance as it transitions from building gas-powered vehicles to ones that run on batteries, but some are raising the alarm over the protection of local jobs.
Preparations are underway for the demolition of nine building that remain fenced off from the explosion that rocked the downtown core of Wheatley in 2021, injuring 20 people.
A fatal crash in Thames Centre has closed down a portion of Highway 401 westbound. Around 2:15 a.m., first responders were called to westbound lanes of the highway between Culloden and Putnam Roads for a two-vehicle crash.
A hiker was airlifted to hospital in critical condition Tuesday after he fell approximately 60 metres into a canyon on Vancouver Island.
A Vancouver woman has filed a civil lawsuit against Paramount Pictures Corp. and punk rocker Stephen Jones of The Sex Pistols alleging he sexually assaulted her as a teenager while she was a movie extra more than 40 years ago.
Harbour Air is travelling towards a more sustainable future, looking to electrify its fleet of 45 aircraft.
An emaciated dachshund is now recovering thanks to a Good Samaritan who found the pup near a biking trail in Kelowna, according to the BC SPCA.
Search and rescue crews have been called in after a vehicle belonging to a missing senior was located near a rural intersection outside of Kelowna Tuesday.
Major crime detectives in British Columbia are investigating a suspected homicide after a body was found in a remote area southeast Kelowna over the weekend.
A former University of Lethbridge student has been awarded the Medal for Diversity, Equity, Inclusion and Equity by NASA.
The Okotoks Oilers bounced back against the Bandits Wednesday night, defeating Brooks 4-1.
It’s not even May 1 and the fire risk for southern Alberta is already alarming.
Some members of the Garden River First Nation are demanding answers regarding the disbursement of the Robinson-Huron Treaty settlement funds.
The Ontario Provincial Police, in partnership with the Treaty Three Police Service, have charged a suspect with murder following a homicide in a remote northwestern Ontario community.
A 15-year-old in Sault Ste. Marie has been charged following an incident on Bay Street on Tuesday.
A Newfoundland-made vodka has been named one of the world’s best by judges at this year’s World Vodka Awards.
Uber Technologies Inc. says it has brought its ridesharing platform to Newfoundland and Labrador.
Newfoundlander Christian Sparkes has shot several films around his home province, but with his new psychological thriller 'The King Tide' he saw an opportunity to wander into one unique town that had eluded him over the years.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
The Ontario Court of Appeal has affirmed the constitutionality of a law that limits members of a spy watchdog from using their parliamentary immunity to speak out.
Canada's auto industry is experiencing a renaissance as it transitions from building gas-powered vehicles to ones that run on batteries, but some are raising the alarm over the protection of local jobs.
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.
Researchers are working to better understand if some Canadian military veterans may be suffering from Chronic Traumatic Encephalopathy, also known as CTE -- a disorder previously found in the brains of professional football and hockey players after their death.
Spine surgery may never be the same for people with chronic back pain and other physical ailments.
After years of delays and a dizzying array of setbacks during test flights, Boeing’s Starliner spacecraft is finally set to make its inaugural crewed launch.
TikTok owner ByteDance would prefer to shut down its loss-making app rather than sell it if the Chinese company exhausts all legal options to fight legislation to ban the platform from app stores in the U.S., four sources said.
Colombia has restricted the import of beef and beef products coming from U.S. states where dairy cows have tested positive for avian influenza as of April 15, according the U.S. Department of Agriculture.
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
A lawyer representing the estate of Tupac Shakur has sent a cease-and-desist letter to Drake after he used an AI-generated likeness of the late rapper's voice in a diss track.
In the last year, Tim Hortons has treated cottaging Canadians to a boat drivethru, revived its beloved Dutchie doughnut and launched flatbread pizzas. But perhaps its biggest surprise will come this summer.
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
A Polish pilot proposed to his flight attendant girlfriend during a flight from Warsaw to Krakow, and she said yes.
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
After dropping Game 2 at home on Tuesday, the Vancouver Canucks are now in Nashville for Games 3 and 4 of their first-round matchup against the Predators. And fans there are gearing up for a unique playoff tradition that gives new meaning to Bridgestone Arena’s nickname: Smashville.
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ford’s electric vehicle unit reported that losses soared in the first quarter to US $1.3 billion, or US$132,000 for each of the 10,000 vehicles it sold in the first three months of the year.
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
A made-in-China electric vehicle will hit North American dealers this summer offering power and efficiency similar to the Tesla Model Y, the world's best-selling EV, but for about US$8,000 less.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
