Canada’s Housing Crisis: Inevitable Crash and Economic Turmoil Predicted

Bank of Montreal economists Doug Porter and Robert Kavcic, in an article titled “Catch-’23: Canada’s Affordability Conundrum,” go into detail about a difficult issue which has been a concern for years, especially in urban and suburban areas.

There seems to be no easy way out of this situation despite the assurances of politicians. Single-family housing in Canada is simply too expensive relative to the income of the majority of residents. Recent interest rate increases have further exacerbated this problem to the point of an economic and social crisis. Porter and Kavcic point out the naiveté of the mainstream explanation that this is just a supply problem. -- More...