Spring Economic Statement: Industry Priorities
The CEO Perspective, by Michael Brooks
March 11, 2026
Spring Economic Statement: Industry Priorities
Each year, I try to speak to at least half of our Executive Members to understand, up to the moment, what’s going on in their business, in their region, in their asset class, and in their vehicle type. It’s amazing, after all these years, how aligned most of the industry is in identifying systemic and structural problems that need fixing in Canada.
This was particularly reflected when we asked the 70-plus Executive Member reps in attendance at our February Executive Member Committee Meeting to comment on themes we need to consistently advocate for with the federal government. The survey results we received after that meeting identified five top policy priorities that REALPAC should engage on.
Industry Policy Priorities
- Population and Labor Strategy
- Tax Competitiveness and Capital Attraction
- Housing Supply and Development Cost Reform
- Regulatory Reform and Faster Approvals
- Encouraging Foreign and Institutional Investment
I would say that many of these are perennial issues, with governments typically very slow to fully understand the problem, and very slow to react to it unless it comes with a lot of expert, media, and voter pressure. Often, their initial policy solution is ill-informed and misses the target. They generally don’t understand our business, and political staff in charge of policy development typically turn over after every election. That’s often where REALPAC has to come in and help them fix it. We are still doing that.
I’ll dig into each of these issues in future updates, but let’s start with the top priority: Tax Competitiveness and Capital Attraction.
Key Policy Measures
Some of the items in this bucket are very specific, including:
- broad GST/HST relief, including the full GST rebate on all new housing, not just limiting it to first-time home buyers;
- the accelerated capital cost allowance for purpose-built rental;
- lower corporate and personal income tax rates;
- a reduction in withholding taxes and cross-border tax friction;
- one that we started advocating for last summer: reform and relaxation of certain REIT technical rules.
Canada’s Competitive Position
The back story that most of our members, of course, know is that Canada is uncompetitive from a tax point of view. Most of the time, we compare ourselves to the U.S. market. That market is deeper, with many more investable cities, much more liquidity, a 1031 like-kind exchange program, and much lower taxation rates.
REALPAC members tell me that the landed return on investment back to Canada is typically 150 to 200 basis points higher than investing in Canada alone, ignoring for the moment the U.S. currency devaluation diminishing that return recently.
Competing for Global Capital
If we are to achieve the Prime Minister’s vision of being the strongest economy in the G7 and fund the housing we need, the factories and other buildings we need, and the massive infrastructure projects we need, we will need international capital — and we need to make it attractive for them.
About the Author:
Michael is the Chief Executive Officer at REALPAC, with overall responsibility for the success of the organization and the industry, including events, government relations, research, standards and best practice, and education. Michael was formerly a commercial real estate lawyer and partner, and the real estate practice group leader, at a major Canadian law firm.