Liberal claims of “making life more affordable” since 2015 is hogwash
By Franco Terrazzano and Kris Sims There was a clash between reality and the federal Liberal Twitter account last week. The self-congratulatory tweet claimed Liberals have been “making life more affordable” since 2015. When Canadians look at gas prices, grocery store receipts and mortgage payments, that claim might raise eyebrows. Does life feel more affordable…
Buying only what we really need eases our budgets, simplifies our lives and cools the economy
Inflation is a relatively new concept to younger people, who have never experienced the onslaught of rising prices. It’s chilling to those who have lived through or learned of times when hard-earned and well-saved money depreciated in value. Monetary policy in Canada aims to keep inflation at or under two per cent. The latest rate…
Urban containment regulations on the urban fringe must be relaxed
For 18 years, I have been monitoring international housing affordability as author or co-author of the Demographia Housing Affordability series. The latest edition rates 92 major markets in eight nations using the “median multiple”: the median house price in a place divided by the median pre-tax household income. In the early 1990s, median multiples in…
Much of the blame for sky-high housing and energy prices is on governments
In a country like ours, with its vast expanses and abundant natural resources, housing and energy should be cheap. Yet over the past two decades, housing prices have shot up much faster than the growth in incomes, and now energy prices are doing the same. In both cases, much of the blame is on government.…
It’s been a wild ride for home buyers
If your home is your castle, and a castle is a fortified residence to keep you safe, then Covid-19 has taught us an important safety lesson: Owning your own home means you become the literal gatekeeper to your own health. But it isn’t only our physical health that has been impacted by the pandemic. Our…
For many Canadians, the dream of home ownership is slipping away
The housing market has been red hot lately, which has been raising concerns about affordability. While the volume of sales has been high, so have prices. Canada-wide, the average home price rose nearly 20 per cent between November 2020 and November 2021, to the highest level on record: $720,850. For many Canadians, the dream of…
The solution to the housing crisis is to build more homes, not raise taxes
By Franco Terrazzano and Kris Sims Canadian Taxpayer Federation The federal government is using tax dollars to dream up a new way to hammer homeowners. In 2020, the online news site Blacklock’s Reporter discovered the federal government funnelling $250,000 through the Canada Mortgage and Housing Corporation to figure out how to improve housing affordability. The…
Housing regulations often limit people to Tesla-level homes or nothing
I’m an economist, so I’m not flattered by those who say you could teach a parrot to be an economist. The bird would need to know only two words, the joke goes: supply and demand. When the supply of any good or service increases, its price goes down. If the supply decreases or is less…
The Trudeau government is papering over its policy failures by rationing housing to the working class
There’s no mystery as to why Canada has seen a record-setting housing spike in the past year: negative real interest rates and monetary debasement from federal deficits. Rather than considering fiscal austerity and getting inflation under control, the federal government has opted to ration home buying and exclude those on the margins. Officials have raised,…
To incentivize affordable housing, officials need to slash taxes and red tape
As economists Jake Fuss and Tegan Hill have warned, the macro effects of government stimuli to address COVID-19 lockdowns are starting to emerge. In Canada, they have taken the form of an overheating housing market. With mortgage rates plunging to historic lows, the demand for residential real estate is driving prices through the roof. As…