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Sent by email:

May 30, 2024
Honourable Sean Fraser,
Minister of Housing, Infrastructure and Communitities
House of Commons
Ottawa, ON
K1A 0A6

Re: Impact of capital gains tax changes on housing Nova Scotians

Dear Minister Fraser,

Thank you for meeting with me and Investment Property Owners Association of Nova Scotia (IPOANS) Chair Jeremy Jackson earlier this month as part of the CFAA Lobby Day.

This month, IPOANS completed a survey of its members on the impact of the federal government’s capital gains tax changes.  I have attached an overview of the sentiments conveyed by more than 100 Nova Scotia respondents in the survey.

Of particular note is the impact on the ownership of rental housing units in the province caused by the capital gains tax changes.  The survey reported that:

  • 761 rental units would be sold, resulting in the units being repurposed and sold as single-family homes – removing these rental units from the market; and
  • 2,323 rental units would be sold as is.

In total, the survey reported that 3,084 rental units would be sold in Nova Scotia because of the capital gains tax changes.

More than 3,000 Nova Scotia families are therefore at risk of losing their homes through property sales solely caused by your government’s capital gains tax decision.

We therefore urge the federal government to defer any changes in capital gains tax until a full assessment of the impact on existing rental housing for tenants is conducted.

We also invite you and your officials to consult with rental housing providers – who provide the vast majority of affordable rental housing to Nova Scotians – before any further changes are made that put existing housing for Nova Scotians at risk.

Yours truly,

Kevin Russell
Executive Director
Investment Property Owners Association of Nova Scotia