Canada’s housing crisis is not just local to Canada but felt around the world. Shelter and housing are a human right yet high house prices and affordability is at an all-time low.
High prices can be partially attributed to shortage of supply, but that’s not the only reason and building millions of more homes is not the solution to this crisis. The Covid-19 pandemic has resulted in a slower population growth coupled with the most houses built in a decade. Yet prices continue to grow, showing that it barely has anything to do with inflation.
The Canadian government has said that houses are affordable for foreign buyers but not for locals. The issue is a battle between homeowners and those who want to get into the market. If prices drop, it helps those trying to own a home but the homeowners who own the asset would see huge depreciation and loss of equity. The issue is that with so many who have invested in property, sometimes the property becomes more of a financial asset than something used primarily for housing.
Some Canadians are worried that the reopening of the US-Canada border would mean Canada’s housing supply would be tight. Immigration is feared at risk of putting pressure on the market.
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