HST Reform Could Unlock More Homes for Canadians

Canadian tax laws create financial barriers for property owners switching homes from short-term rentals (STRs) back to long-term residential use. The Harmonized Sales Tax (HST) treats such changes as commercial transactions, triggering costly "deemed disposition" taxes. This discourages owners from returning properties to the housing market, locking up supply and favoring investors. Critics urge tax reforms to ease transitions and support housing availability.