Madam Speaker, before I commence my remarks on the file we are discussing tonight, I want to express my condolences to everyone in the Muslim community, to the family in question and to everyone in London and Canada. That terrible tragedy has saddened all of us. We certainly have to commit to move forward and find a way to eliminate these kinds of terrible tragedies. I extend condolences on behalf of everybody in Humber River—Black Creek.
I am pleased to join this debate on the motion by the member for Mission—Matsqui—Fraser Canyon. I want to focus on his call for our government to examine a temporary freeze on home purchases by non-resident foreign buyers. I know this is an issue that the hon. member cares very much about, as we all do. It is an issue across all ridings, as well as mine, Humber River—Black Creek.
The issue of foreign ownership of housing in Canada is a complicated one, and our understanding of the problem has been hindered to some degree by a lack of hard data. That is why, in budget 2017, our government committed almost $40 million over five years for Statistics Canada to develop a new Canadian housing statistics program. This program was created in part to investigate the role of foreign homebuyers in the Canadian housing market, something that all of us, when we are in our ridings, have been witness to, when we see houses sitting empty just long enough for the owners to flip them.
It also aims to improve our understanding of the characteristics of residential properties and their owners that impact affordability. This program will provide a complete database of all residential properties in Canada, including whether property owners are residents of Canada. This information will be invaluable to all levels of government in developing future housing policies.
Recent reports by both Statistics Canada and CMHC indicate that the share of non-resident-owned condominium apartment units in most of Canada's major cities so far remains relatively low, but while groundbreaking research by CMHC a few years ago confirmed that foreign investment was clearly a factor driving house price acceleration in cities like Vancouver and Toronto, it is not the only factor driving the prices up. The same report identified inadequate supply as the main driver of high house prices in major centres.
As we all know, our government is working with the provinces, territories and many other partners and stakeholders to address the supply challenge through the national housing strategy. I have to say how happy I am that our government reintroduced the national housing strategy. For many years, we did not have any kind of housing strategy in the House at the federal level. I am thrilled that we introduced it, and we have already made significant accomplishments. This 10-year, $70-billion-plus plan has already added or repaired tens of thousands of affordable housing units in communities across the country. Many of those units were unlivable, but people did not have an alternative. There was nowhere else to go.
The national housing strategy has had a positive impact on my riding, where residents have been in dire need of additional units. We must ensure that these units are available to those who are on Canadian soil. The issue of foreign ownership and, perhaps more specifically, the issue of unoccupied units owned by non-residents of Canada is the real crux of this problem. The fact is that units are being purchased by speculators, whether foreign or domestic, and left empty while the owners wait for prices to rise and while many are still left without a place to call home.
Many of the streets in Humber River—Black Creek have homes where the grass does not get cut until the end of the season, completely abandoned. Owners are waiting for the chance to sell their properties and make money. This is unacceptable, especially in communities like Toronto where housing is already in short supply. The government recognizes the problem, and we are taking serious steps to address it.
The member will recall that last fall's economic statement acknowledged that speculative demand from foreign non-resident investors contributes to unaffordable housing prices for many Canadians. At the same time, we committed to help make housing markets more secure and affordable for Canadians by ensuring that these individuals pay their fair share, at a minimum.
I was therefore delighted, as I am sure all of my colleagues were, even on the other side, when the Minister of Finance confirmed in budget 2021 that the federal government would be implementing a national 1% tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused. I would have liked to see it higher than 1%, personally, but it is a beginning.
This new tax, which will come into effect on January 1 of next year, will require all owners, other than Canadian citizens or permanent residents of Canada, to file a declaration as to the current use of the property, with significant penalties for failure to file. As we stated in the budget, the government believes that homes are meant to live in. This measure is one way to ensure that houses in Canada are first and foremost a place for Canadians to live, to raise their families and to build their futures.
Some time will be needed to ensure that the tax is designed and implemented fairly and effectively. In the coming months, we will release a consultation paper to give stakeholders an opportunity to comment on the parameters of the proposed tax, including whether special rules should be established for small tourism and resort communities.
We will, of course, work closely with the provinces, territories and municipalities in implementing this new tax, which is expected to increase federal revenues by about $700 million over four years, starting in 2022-23. These revenues will help to support the significant investments in budget 2021 to make housing more affordable for all Canadians. These investments include $2.5 billion in new funding and a reallocation of $1.3 billion in existing funding to help build, repair and support 35,000 existing housing units. Budget 2021 will also support the conversion to housing of the empty office space that has appeared in many of our downtowns by reallocating $300 million from the rental construction financing initiative.
Budget 2021 not only fulfills our commitment to implement a tax on vacant or underused residential property owned by foreign non-residents. It also builds on our legacy of investing heavily in housing affordability. The combination of massive investments to make housing more affordable for the most vulnerable, to end homelessness and to limit foreign speculation in the housing market will help ensure that Canada's economic recovery is an inclusive one that helps more people join the middle class.
I know that the member who put the motion forward shares this goal. He has frequently brought the matter of affordability to the attention of the House, and I commend him for that. However, his motion suggests that we need to begin by tearing down all the progress we have made, and that is not something I can agree with him on. Tens of thousands of Canadian families have benefited from our investments to date through the national housing strategy, including constituents in the riding represented by the member.
Our government is confident that the path we are on with the national housing strategy is the right one for Canada, and we will not stop making progress until everyone has a safe and affordable place to call home.