The Trudeau government’s move to eliminate GST on purpose built rental housing is being called a good first step by some developers, but they say a skilled trades shortage could lead to more competition for workers and ultimately fail to drive down sky-high rents.

After a two-day caucus retreat, the Liberals announced that newly built rental units would qualify for a rebate on the GST paid on building supplies and other costs. They also announced plans to put more pressure on cities to ease zoning rules to allow for more multi-unit builds and housing density near transit projects.

The latest data from rentals.ca shows the average rent for a one-bedroom apartment in Canada is now $2,117, up almost 10 per cent from where it was a year ago. Prices in major cities in Toronto and Vancouver are even higher, as are prices for larger units.

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