The momentum for a “MURB 2.0” is reaching a fever pitch in the Canadian development industry. As we navigate 2026, the parallels between our current housing crisis and the one that birthed the original program in the 1970s are impossible to ignore.
For developers and investors, the return of the Multi-Unit Residential Building (MURB) program isn’t just a nostalgic nod to the past—it is a modern financial necessity.
The “MURB” Legacy: A 200,000-Unit Success Story
In the 1970s and 80s, the federal government faced a similar rental shortage. Their solution was the MURB program, which allowed investors to use Capital Cost Allowance (CCA) losses from rental properties to offset other sources of income.
The results were staggering:
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National Impact: Delivered nearly 200,000 new rental units.
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Local Success: In Toronto alone, the program was responsible for approximately 20,000 units.
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The Mechanism: It turned “soft costs” and depreciation into immediate tax relief, making the math work for private capital where it otherwise wouldn’t.
The Road to MURB 2.0: Strategic Advocacy
The reintroduction of MURBs isn’t happening in a vacuum. It is the centerpiece of a coordinated policy push from Canada’s most influential housing bodies, led by the National Apartment Council (NAC).
1. The National Apartment Council (NAC) Strategy
The NAC has been the loudest voice in Ottawa advocating for the structural tax reform needed to fix the supply gap. Their recent policy recommendations explicitly call for higher CCA rates and streamlined financing—the very DNA of a MURB-style incentive. By championing these changes, the NAC is pushing to create a “plug-and-play” financial environment for developers.
2. The Task Force for Housing & Climate (2024)
Working in parallel with industry advocacy, this group has bridged the gap between supply and sustainability. Their blueprint recommends enhanced CCA and capital gains deferral to mobilize the billions in private capital currently sitting on the sidelines.
3. Build Canada Homes
Under the current federal strategy, the new Build Canada Homes initiative is looking for “shovels-in-the-ground” solutions. A modernized MURB program—potentially featuring an accelerated CCA schedule—is the most likely tool to hit those ambitious supply targets.
Why the Industry is United
Rarely do we see such universal consensus. From the City of Toronto’s 2024 analysis to national investment groups, nobody is “against” the idea. The logic is simple:
To solve the housing crisis, we must make rental development more attractive than any other asset class.
What You Need to Know Now
The reintroduction is a matter of when, not if. Developers who understand the mechanics of CCA recapture, soft-cost deductibility, and CMHC integration now will have a massive first-mover advantage.
How Rock Advisors is Leading the Way
At Rock Advisors, we aren’t just waiting for the announcement—we’ve already done the homework. We have:
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Modelled the original MURB program to identify what worked and what didn’t.
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Created proforma inputs specifically designed for “MURB 2.0” scenarios.
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Analyzed financial performance across different building classes.
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Integrated CMHC programs to ensure your project is optimized for both tax incentives and low-cost financing.
When the federal government flips the switch, your development strategy needs to be ready. This isn’t just another tax tweak; it’s the return of the most powerful rental supply tool in Canadian history.