“The scale of the challenge is so large that the private sector must be involved – governments cannot do this on their own,” ab Iorwerth said.
Read more: How has Canadian housing market activity fared since 2021?
CMHC estimated that in the two decades spanning 2000 to 2020, Canada saw a 59.69% increase in its debt-to-disposable-income ratio. This inflames another risk factor – namely, the concentration of households’ savings and expenditure on housing.
“Getting housing costs down across the board is critical,” ab Iorwerth said. “Low-income households face hardship because of housing costs, which needs a targeted solution, but risks from high house prices and excessive debts harm everyone and should also be considered.”
However, any policy approach should also recognize that elevated prices are just one aspect of the equation.
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