Federal Election Results Signal Construction Sector Growth on Vancouver Island
In the 2025 federal election, the Liberal Party, led by Mark Carney, secured a fourth consecutive term. On Vancouver Island, the Liberals made significant gains, including the election of Will Greaves in Victoria. This shift suggests the region may now be more closely aligned with federal priorities, particularly in housing, infrastructure, and construction.
Key Federal Commitments Affecting Construction and Housing
The Liberal platform centered on increasing housing supply, improving affordability, and driving innovation in the construction sector. Several initiatives are expected to directly impact Vancouver Island communities and the construction industry:
Housing Accelerator Fund
A $4 billion national fund to help municipalities expedite permitting and zoning processes. With a goal of over 100,000 new homes across Canada, this fund is expected to benefit municipalities like Victoria and Nanaimo facing growing housing demand.
GST Removal on New Purpose-Built Rental Housing
To reduce costs for developers and incentivize rental housing construction, the federal government has removed GST on new purpose-built rental projects—effective immediately.
Build Canada Homes
A new federal developer with $25 billion in financing to support innovative and efficient construction methods such as prefabricated and factory-built homes, in partnership with private sector builders. Development work is expected to begin in 2026.
Unlocking Federal Lands for Housing
Surplus federal lands will be made available to municipalities and non-profit organizations for affordable housing development, with land parcels identified beginning in 2026.
Skilled Trades Immigration Stream
To ease ongoing labour shortages in construction and other sectors, the government will prioritize permanent residency for skilled trades workers—a move that may bring relief to Vancouver Island’s tight labour market.
Implementation Timeline at a Glance
2025
2026–2027
2028–2031
What This Means for Vancouver Island’s Construction Industry
Increased Project Volume
With new funding and land releases, the Island is expected to see a rise in residential and mixed-use development, especially in urban centres.
Labour Market Relief
Fast-tracked immigration for trades could help alleviate workforce shortages, though competition for skilled labour will remain high in the short term.
Incentives for Innovation
Support for off-site and modular construction may benefit Island-based manufacturers and contractors with capacity in prefabrication.
Streamlined Approvals
Municipalities that access the Housing Accelerator Fund will be under pressure to modernize and accelerate permitting processes, offering a more predictable environment for developers.
Looking Ahead
The federal government’s direction signals a period of strong growth potential for Vancouver Island’s construction sector. As new opportunities emerge, industry leaders must prepare for an uptick in demand, a shifting regulatory landscape, and evolving workforce dynamics.
VICA will continue to monitor developments and advocate for the needs of Vancouver Island’s construction community.