Federal Election Aftermath: A New Era for Canada’s Real Estate Sector
The 2025 Canadian federal election has set the stage for significant changes in the nation’s real estate landscape. With the Liberal Party, led by Mark Carney, retaining power, the focus on housing affordability and supply has never been more pronounced. As the government unveils its plans to address the housing crisis, legal experts predict a surge in demand for real estate lawyers.
According to a recent analysis by Gowling WLG, one of Canada’s leading law firms, the real estate bar is poised to benefit from the policy shifts. The firm’s legal professionals highlight that the Liberal government’s commitments to increasing housing supply and supporting first-time buyers will create a wave of new opportunities—and challenges—for the sector.
“The election has brought housing affordability to the forefront of national conversation,” said a Gowling WLG lawyer specializing in real estate law. “As the government rolls out its initiatives, we expect a noticeable uptick in legal work related to transactions, development projects, and regulatory compliance.”
At the heart of the Liberal platform are ambitious measures to tackle Canada’s housing crisis. With more than half of Canadians citing housing affordability as a key factor in their vote, the government has pledged to accelerate the construction of new homes. However, experts caution that the results of these efforts will take time to materialize.
“Building housing stock is not a quick fix,” explained the lawyer. “While the government’s targets are commendable, the reality is that meaningful changes to supply won’t be felt until at least 2026. Buyers hoping for a rapid cooldown in the market may need to adjust their expectations.”
One of the most talked-about proposals is a GST rebate for buyers of new homes, potentially saving them up to $40,000 on an $800,000 property. This incentive, however, comes with limitations. It applies only to new construction, and buyers must still navigate stringent mortgage qualification rules. With unemployment rates ticking upward, some would-be homeowners may find themselves locked out of these benefits.
For investors, the outlook remains stable in the short term. Rental markets in major cities like Toronto and Vancouver continue to tighten, with vacancy rates hovering below 2%. This has kept rents elevated, offering a degree of security for landlords. However, the promise of increased housing supply and potential new taxes could reshape investor strategies in the coming years.
Renters, on the other hand, may see little immediate relief. While additional housing stock could eventually ease competition for available units, the slow pace of construction means that any significant impact is still years away.
Amid these shifting dynamics, real estate lawyers are bracing for a busy period. The anticipated surge in transactions, coupled with the complexities of new regulations, is expected to keep legal professionals in high demand. From advising first-time buyers on government incentives to guiding developers through evolving legal frameworks, the role of real estate lawyers will be more critical than ever.
As the Liberal government begins implementing its housing agenda, the legal community is preparing for both the challenges and opportunities ahead. For Gowling WLG and other firms specializing in real estate law, the next few years promise to be transformative.
Federal Election Aftermath: Impact on Canada’s Real Estate Bar
The recent Canadian federal election, which saw Mark Carney and the Liberal Party retain power, is expected to have significant effects on the country’s real estate sector—especially for legal professionals working in real estate law. Multiple government promises targeting housing supply, affordability, and market stability are at the center of these anticipated changes.
Housing affordability emerged as a dominant issue during the election campaign, with more than half of Canadians indicating it strongly influenced their vote. Younger voters were even more focused on this issue. In response, the Liberal government has pledged to address the housing crisis through a range of measures, especially by increasing the supply of homes.
However, building new housing stock to meet demand is a complex, long-term process. Even with accelerated government initiatives, it could take years before a significant increase in supply is seen in the market—possibly not until 2026 or later. This means that those hoping for a sudden drop in home prices due to abundant new housing may have to wait.
One of the headline measures is a proposed GST rebate on new homes, which could save buyers up to $40,000 on an $800,000 home. This is intended to make homeownership more attainable for first-time buyers, though it applies only to new builds, not resales. It’s not a blanket solution—buyers must still meet mortgage qualification requirements, and with recent increases in unemployment, some may struggle to access these benefits.
For investors, the overall outlook is stable in the short term, as rental markets remain tight—vacancy rates in major cities like Toronto and Vancouver remain below 2%, keeping rents high. Still, talk of new taxes and the promise of a larger housing supply could impact investor calculations in coming years.
Renters may benefit if new housing supply reduces competition for units, but these effects will also take time. Immediate relief is unlikely since construction and delivery of new housing typically span multiple years.
The anticipated policy changes and increased government intervention in the real estate market are likely to create more work for real estate lawyers. Legal professionals can expect:
- Increased Transaction Volume: As incentives for first-time homebuyers and new construction projects get underway, there could be a spike in real estate transactions and development deals.
- Evolving Legal Frameworks: Lawyers will need to navigate new rules, taxes, and regulations introduced by the federal government, especially around incentives and housing supply measures.
- Advisory Opportunities: Both buyers and developers will require legal advice to understand and leverage new government programs, especially as details are finalized and implemented.
While the changes outlined by the new government are ambitious, the pace of their practical impact will be gradual due to the inherent complexities of building new homes at scale. For lawyers, this transition period represents both a challenge and an opportunity: keeping abreast of changing laws and advising clients as the landscape evolves will be crucial for the real estate bar in the months and years following the federal election.
In summary, the 2025 federal election has laid the groundwork for potentially transformative changes in Canadian real estate law and practice, with the legal profession poised to play a central role in helping both individuals and organizations adapt to shifting policies and market dynamics.
Conclusion
The 2025 Canadian federal election has set the stage for significant shifts in the real estate sector, particularly for legal professionals. While the Liberal government’s housing initiatives aim to address affordability and supply, the practical effects will unfold gradually. Real estate lawyers are positioned to play a pivotal role in guiding clients through evolving policies and market dynamics. Staying informed and adaptable will be key for professionals navigating this changing landscape.
Frequently Asked Questions
How will the federal election impact housing prices in Canada?
The election outcomes and housing policies are expected to gradually increase housing supply, which may stabilize or slow price growth over time. However, immediate price drops are unlikely due to the time required to build new housing stock.
What benefits does the GST rebate offer to first-time homebuyers?
The proposed GST rebate on new homes could save first-time buyers up to $40,000 on an $800,000 home, making homeownership more accessible. However, it only applies to new construction, not resale properties.
How will the new policies affect real estate investors?
In the short term, rental markets remain tight, supporting high rents. However, long-term changes in housing supply and potential new taxes could alter investor strategies and returns.
When can renters expect relief from high competition for units?
Renters may see relief as new housing supply increases, but this will take time. Construction timelines mean significant changes are unlikely before 2026 or later.
How should real estate lawyers prepare for these changes?
Lawyers should stay updated on new regulations and incentives. They can expect increased demand for legal services related to transactions, development deals, and advisory roles as clients navigate the evolving landscape.
