There are so many downsides to the untenable prices in the Canadian housing market that it’s hard to keep up. But to add another one to the list: The negative effect on mobility, including the ability of people to move for work.
Prohibitively expensive home prices, high interest rates and increasing rents are the antithesis to the movement of people. Many are stuck in this constipated housing market. If you have anything close to a decent spot, you’re not going anywhere. It’s a big part of what’s gumming up the system.
The Canadian Real Estate Association said 2023 saw the lowest annual level for transactions across the country since 2008, the period after the U.S. housing crash.
This is while demand is still soaring. But people are scared off by costs: The staying power of inflation means interest-rate cuts this year are likely but not guaranteed, and many homeowners still face higher rates on mortgage renewals. Even as the federal Liberals unleashed a flurry of housing announcements last week – including a promising Canada Rental Protection Fund, based on a British Columbia model meant to maintain stocks of affordable rental units – dour........