![]() ![]() In a report last June, the Canadian Mortgage and Housing Corporation estimated that it would take the construction of 3.5 million more homes to return Canada to the level of affordability last seen in 2003, one of the last years in which it was still technically feasible for a household earning an average income to afford a home in a major centre such as Toronto or Vancouver.Īnd it’s this factor that remains the most reliable bulwark propping up Canadian real estate unaffordability. Foreign capital has played a part in juicing demand, but there’s no escaping the fact that Canada has developed the most acute housing shortage of any other country in the G7. The core problem in Canadian housing affordability has always been a simple scarcity of homes. This advertisement has not loaded yet, but your article continues below. Real Estate Association said prices would remain “extraordinarily resilient” and that the higher rates would probably not “make that much of a difference.” In its official reaction to the higher rate, a spokesperson for the B.C. But almost everywhere, real estate professionals are confident the juggernaut is going to continue. Only a year later, it’s happening again: Under normal conditions, a central bank hiking interest rates to 4.75 per cent would be expected to send housing prices into a slump. Real estate publications praised the country’s return to “ normalcy” although normalcy, in this case, referred to annual double-digit spikes in value that remained wholly detached from local economic conditions. The price drops slowed, the unaffordability ratchet held fast, and untold millions abandoned their last lingering hope of owning their own home. And now, finally, the “correction” was happening a downward plunge that would not stop until a Canadian earning a normal wage could once again own property without the help of a windfall inheritance.īut the moment is over. ![]() The COVID-19 pandemic had taken Canada’s already-overheated housing prices and bid them up to meteoric heights. ![]()
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