Assetsoft - Blog #economy

Canada’s Real Estate Reset: How Mark Carney’s Housing Plan Will Reshape Construction, Rentals, Commercial Property—and the Economy

Tue, 06 May 2025 03:08:17 -0500

Canada is entering a new era in real estate.

With Mark Carney at the helm and his 2025 housing strategy in motion, the country is poised for the most ambitious housing expansion since the post-war era. The goals are bold: double the pace of home construction, dramatically expand affordable rental housing, and modernize how we build and finance real estate.

But what do these sweeping policies mean for developers, property owners, construction firms, and investors? And what shifts should we expect across residential, multi-family, and commercial real estate?

Let’s unpack how this transformation will likely unfold—and what the industry should prepare for.

1. A Construction Boom Fueled by Modular Innovation

The newly proposed federal entity, Build Canada Homes (BCH), is at the heart of the plan. Modeled after post-WWII institutions, BCH is designed to finance and develop affordable housing at scale, backed by $25 billion in debt and $1 billion in equity for Canadian modular and prefabricated home builders.

Key implications:

Modular construction and mass timber will take center stage as BCH places bulk orders to achieve economies of scale.
Supply chain modernization will become critical to meet delivery timelines.
Sustainability regulations will shape materials and methods, requiring low-emission building standards.

This signals a fast, factory-style approach to homebuilding and a new market reality in which innovation in construction will be rewarded.

2. Multi-Family Market Revival: Tax-Incentivized Growth

Carney’s plan breathes new life into multi-unit rental housing by reviving the MURB (Multiple Unit Rental Building) tax allowance—a once-successful program from the 1970s that drove the construction of over 190,000 rental units.

Why this matters:

Investors will be able to deduct depreciation and other costs, making purpose-built rentals more financially viable.
Developers are incentivized to convert existing buildings into affordable units, especially with reduced tax burdens for sellers transferring assets to non-profits.
Municipal development charges for multi-unit housing will be cut in half for five years, easing cost pressures in expensive markets.

Rental housing, long neglected in favor of condos, could once again become a centerpiece of Canadian real estate.

3. Commercial Real Estate: A Quiet Transformation

Though the policy focus is residential, commercial property won’t be untouched. Adaptive reuse—turning underused office and commercial buildings into residential or mixed-use projects—will likely accelerate under zoning reforms and municipal incentives.

Emerging trends:

Aging downtown office stock will be retrofitted into multi-family housing, senior housing, or co-living developments.
Demand for industrial and logistics properties will rise due to the growth of prefab and modular housing factories.
Transit-oriented and mixed-use developments will grow, as urban planning increasingly favors densification over sprawl.

This presents a dual opportunity for commercial landlords and real estate investors: modernize assets for new uses or pivot toward logistics and industrial development.

4. The Economic Ripple Effect: Affordability, Investment, and Growth

The real estate reboot has broader economic consequences:

Increased GDP from construction and infrastructure investment.
Job creation across skilled trades, engineering, and project management.
Affordability improvements—especially for first-time buyers through GST rebates and new supply- remain challenging in hot markets.
Potential inflation risks if materials and labor markets overheat, though prefabrication may offer cost containment.

At the same time, this plan demands tight federal-provincial coordination, innovative financing, and careful execution to meet its targets without unintended fallout. Potential challenges include managing inflation risks if materials and labor markets overheat, though prefabrication may offer cost containment.

What This Means for the Real Estate Industry

Whether you're a developer, investor, property manager, or construction firm, Canada’s new housing agenda will change how projects are financed, built, and managed. But it also brings with it a wave of potential growth and opportunity. Speed, scalability, and sustainability will become the new benchmarks, opening up new avenues for success.

A Note on Staying Ahead

Navigating this landscape will require more than traditional approaches. Companies that invest in technology, process automation, and real-time data visibility will be better equipped to take advantage of tax incentives, modular efficiencies, and funding opportunities.

Assetsoft, a leading real estate technology and consulting firm, works with companies across Canada to modernize operations—from project costing and ERP integration to lease management and data analytics. As the market evolves, tools like these will become essential for those looking to scale smartly and stay compliant with shifting regulatory frameworks.

Conclusion: A Defining Decade for Canadian Real Estate

Mark Carney’s housing plan isn’t just about building homes—it’s about reshaping the real estate ecosystem to be faster, greener, and more inclusive. For those ready to adapt, this new environment offers immense opportunity. With the potential for faster, greener, and more inclusive real estate, the future looks bright. For those unprepared, it could bring disruption.

The next decade will belong to the agile and innovative. Is your business ready to adapt and thrive in this new real estate landscape?

Get Started Now

Cant Afford Your Rent? Here Are A Few Things You Can Do About It

Wed, 03 Mar 2021 13:35:10 -0500

COVID-19 has been a disaster for many. Countless people lost their job, and everyday expenses became an uphill battle. Rent was one of those, and bans on evictions were necessary to keep people from homelessness.

Today, we can say everything has improved noticeably. Lockdowns have eased, and many workers have been returning to their jobs. The promise of a vaccine offers nothing but hope for things to go back to normal.

However, that doesn’t mean everything is fine. Recovery is a long road, and countless people still struggle to meet basic expenses. Rent is one of those, and if your due date is coming—and you don’t have any money—you’re in the right place.

A reality for many: Common strategies you can use

ABC News already covered this subject last year. Their report goes through the case of a single mom who lost her job amid lockdowns. Unfortunately, that's a prevalent story these days, but her solution shows there's always an option.

In her case, she ran a crowdfunding campaign to help her pay rent. Thankfully, it succeeded, and she managed to remain in her apartment without having to resort to debt. Luckily, chances are you won’t need to go that far.

Free options

Naturally, our priority is not to spend any money. You can reevaluate your budgeting to find room for savings. That includes lowering your 401(k) contributions, reducing non-essential spending, and finding low-income programs.

You can also reach out to your landlord. Today, many property managers have implemented the latest management technologies, enabling better communications, like Yardi and MRI. If they don’t have one, you can try calling them. Reaching out for friends, subletting (if applicable) and applying for grants are also excellent options.

Investing wisely

Now, investing money vital for your future should be one of the last things you try. However, that's all we can do, sometimes. If that's the case, you can consider selling stocks if you have any or acquire 401(k) eligible financing and loans.

Relief funds and other financing programs have provided critical capital for countless individuals and families. It would be best if you considered how you could invest this money only in an emergency.

High-interest financing

If you lack a good credit score, your only option is likely high-interest debt. That's the real last-ditch effort, but again, you shouldn't panic if this is your case. The first step is to find the least expensive options and try those first.

For instance, you can borrow against a credit card limit. Similarly, you could try to pay your rent with credit. Finally, cash advances should be your last resort, especially considering their impact on your credit score.

How has the coronavirus made everything different?

Similarly, The Washington Post also provides plenty of tips for tenants with trouble paying rent. It also makes an interesting comparison in its introduction: this situation is very similar to 2008’s financial crisis.

However, the amount of aid available during COVID-19 has been substantial in contrast. It's worth considering that the unemployment benefit applications have been a record high during COVID-19.

The US Great Recession was a lesson

The crucial difference between the mentioned crisis and coronavirus is that financial institutions have learned a vital lesson. The unemployment levels have been staggering, and the repercussions are more significant.

Many experts believe there's a lot more risk with COVID-19. Therefore, it's in everyone's best interests to make sure they help as many as possible.

What have financial institutions offered?

The ABA (American Bankers Association) compiled a series of steps for banks to tackle COVID-19. It includes avoiding late fees on mortgages and other loans for extended periods. The same holds for the record-low interest rates.

On the other hand, the FHFA (Federal Housing Finance Agency) also announced loan deferrals for property owners who don’t evict tenants. It’s been available only for multifamily properties with Fannie and Freddie mortgages, but that already accounts for 43% of the sector.

What can mortgage holders do?

A mortgage is a rent for homeowners, and thankfully, they also have plenty of options. The first step is to contact loan providers to determine if you're eligible for foreclosure suspension and similar benefits.

Additionally, remember to research COVID-19 response measures in your area. Some areas offer loan repayments and assistance for some instances. It could also be worth seeking help to calculate your mortgage and distribution.

The do’s and don'ts of late rent

Finally, law magazine NOLO also provides excellent advice for troubled renters. It’s vital to remember that eviction moratoriums don’t mean you’re not obliged to abide by your rent. Your landlord could still leverage interest and similar penalties.

If you're worried about not paying rent, the most critical strategy is to bring out the topic first—all the tips from the article point toward this recommendation.

Reach out to your landlord

Your landlord is likely going through similar financial turmoil, especially if they're dealing with mortgages. They'll likely understand your situation, and they'll appreciate tenants who don't merely take advantage of eviction bans.

Don't ignore it

It can be scary to bring out late rent to your landlord. Many tenants choose to ignore their late rents, usually hoping that landlords will forget about it. That's one of the worst things you can do, significantly since it can tarnish your relationship.

Don’t send bouncing checks

Nevertheless, nothing is more infuriating for landlords than having a rent check bounce. If you issue a check like that (or without signing it) can entitle your landlord to enforce fees on your late rent.