Home Economics: Detailed Budget Plan for Housing Affordability; Office vacancies remain high

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What you need to know about the 2022 budget

In another major spending budget, Finance Minister Chrystia Freeland tabled the federal government’s economic roadmap to lift Canada out of the bowels of the pandemic, with measures to put Canada on a sustainable fiscal path. The budget delivers on key Liberal Party promises, such as a carbon capture tax credit, funding for national dental care and a lower tax hike for the big banks. Read BNN Bloomberg’s Ian Vandaelle breakdown nine things you need to know about the 2022 budget.

The federal government’s plan to bring Canadians home

Also noted in the budget, the federal government is trying to address Canada’s housing affordability crisis. This is no easy task, as recently released data for Canada’s three major cities showed: House prices in Toronto increased by 18% compared to the same period last year, Vancouver Home Sales has climbed 27% since February, and Median price in Montreal of a single-family home has climbed 18% since last year. What is the plan? The federal government’s three-pillar strategy is to limit real estate investment, help first-time buyers and allocate funds to build more homes. The government expects the plan to cost $10.1 billion by the 2026-2027 fiscal year. BNN Bloomberg’s Michelle Zadikian has the details here.

Pay transparency can minimize recruitment friction

Job postings are supposed to provide relevant details about the vacancies, but a lack of “salary transparency” can keep applicants away. Without salary disclosure, applicants are unsure if a job is financially viable, often being kept in the dark until the end of the application and interview process. Amanda Hudson, founder of Toronto-based HR consultancy A Modern Way to Work, argues that employers who spotlight job salaries will generate goodwill among potential candidates — and avoid tension as part of a recruitment process.

Office vacancies remain high

Offices continue to gather dust, despite hopes of Canadian homeowners returning to the office. With a surge in the Omicron variant earlier this year prompting more businesses to forfeit leases, the national office vacancy rate hit a record 16.3% in the first quarter, report says of the commercial real estate brokerage firm CBRE. In Toronto, Canada’s largest city and financial capital, the vacancy rate soared to 14.8%. So, as COVID-19 cases continue to rise across the country, office spaces may sit empty for some time. For longer.

Young employees can benefit from an entrance to the office

Speaking of vacant office space, many companies continue to adapt the hybrid model – where employees can switch between working remotely and working in the office. But for young professionals hoping to be more than a name on a screen, stepping into a physical workspace could be key to building strong relationships and making lasting impressions. Learn about important office steps towards career development, strong communication and team collaboration here.

TIP JAR

$40,000

In the budget, Ottawa announced plans to introduce a first tax-free home ownership savings account, where starting in 2023, potential buyers can deposit up to $8,000 per year tax-free until to a maximum total of $40,000 to save for a home.

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