For homeowners and real estate investors, the promise of a new subway line, an expanded highway, or the arrival of high-speed internet is more than just a convenience—it's a direct signal of future growth and increased property value. That's why a recent report from the Parliamentary Budget Officer (PBO) on the Canada Infrastructure Bank (CIB) is a critical read for anyone with a stake in the real estate market.

The report reveals that the CIB is projected to fall more than$20 billion short of its 2028 investment target. While this may seem like a distant federal issue, the slowdown has direct implications for the timelines of key projects that can significantly boost the desirability and value of our communities.

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How Infrastructure Drives Real Estate Value

The connection between infrastructure and property values is well-established. As one analysis in Canadian Real Estate Magazine highlights, properties located near major public transit hubs, like subways and light rail lines, often command a "transit premium". This is because accessibility is a top priority for buyers. Easy access to jobs, schools, and amenities saves residents time and money, making a neighbourhood more attractive and driving up demand.

Furthermore, major infrastructure projects act as powerful economic catalysts. They create construction jobs, stimulate local business, and enhance the overall quality of life, which in turn attracts new residents and investment, contributing to a more stable and prosperous real estate market [4].

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Analyzing the PBO's Findings Through a Real Estate Lens

The PBO's report projects the CIB will only disburse $14.9 billion* of its mandated$35 billion by the 2027-28 fiscal year. This delay impacts several key sectors that are crucial for real estate growth:

• Public Transit $5 Billion Target): The PBO forecasts this goal won't be met until 2029-30. For homeowners in areas promised new transit lines, this means the anticipated surge in property values associated with transit-oriented development may be further off than expected. The "transit premium" is still a valid expectation, but the timeline has shifted.
• Broadband $3 Billion Target): In the age of remote work, reliable high-speed internet has become a non-negotiable utility for many homebuyers. The PBO report shows the CIB's broadband investments are also behind schedule. This could slow the growth of property values in rural and underserved areas that are counting on connectivity to attract new residents seeking a different lifestyle outside of major urban cores.
• Green Infrastructure $10 Billion Target): Investments in parks, flood defenses, and recreational facilities enhance a community's quality of life and resilience. Delays in this sector mean a longer wait for the amenities that make neighbourhoods more attractive to families and environmentally-conscious buyers.

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What This Means for Your Real Estate Strategy

The PBO's report is not a sign that these vital projects are cancelled, but it is a clear signal that timelines are being extended. This has important implications for both buyers and sellers.

• For Homeowners and Sellers: The long-term value of your property is still strongly supported by Canada's commitment to infrastructure. However, if you were planning a sale based on the imminent arrival of a new project, it may be wise to adjust your expectations on the timing of its impact.
• For Buyers and Investors: This report underscores the importance of due diligence. A line on a map or a government announcement from years ago does not guarantee a project is breaking ground tomorrow. Buyers should investigate the concrete timelines and funding status of any promised infrastructure. This information is now a crucial part of assessing a property's future potential. The slowdown could also present opportunities to invest in areas with long-term potential before the full impact of a future project is priced in.

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In conclusion, while the Canada Infrastructure Bank's vision is essential for the country's growth, the pace of its investments requires patience. Understanding these delays is key to making informed, strategic decisions in today's real estate market.