Buying a house may remain out of reach for many Canadians for the foreseeable future, with mortgage costs unlikely to fall enough to offset lofty home prices and weak spending power, economists and real estate agents say. 0 Even with expectations that Bank of Canada will keep cutting rates in the coming months, the issue of home affordability - which has strangled Prime Minister Justin Trudeau’s poll numbers - is unlikely to fade before the next election.
The mandate for the Liberal minority government ends at the end of October 2025, but an election could come well before then, with the Conservative opposition spoiling to end Trudeau’s nine-year run at the top.
“You won’t get back to an affordable range for housing on a sustained basis for a decade,” Tony Stillo, director at forecasting and analysis group Oxford Economics, said last week at a conference.
Not OP, but you keep hinging on the supply reduction that OP supposedly said (which he did not). He just explained the context of today vs the period of urban sprawl where land was cheap.
He is right that reducing urban sprawl and setting limits on what can be build where put upwards pressure on the existing land price, and that only corpos can afford to buy land to build multi-units.
The policies that densify urban region are good and necessary, but we have to make sure that the pressure it creates on land price is somewhat controlled.