The U.S. housing market is hot. Canada's is even hotter

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U.S. home sales increased by 13% in March compared with 2019. In Canada, the increase was a whopping 75%

Tight supply, low borrowing costs and pandemic-inspired demand for larger homes in both countries have prompted bidding wars, offers six figures above asking price, and a record surge in overall home values — the U.S. last week reported a record median gain of 16.2 per cent in the first three months of the year.

The report found some notable differences between the two housing markets that may partly explain Canada’s hypergrowth.Article content Population expansion has been faster in Canada than in the U.S., for example, particularly in the three-year period before the pandemic when Prime Minister Justin Trudeau increased immigration just as the U.S. under President Donald Trump was throwing up barriers to entry. Canadians also escaped the 2008 financial crisis without much loss to their home values — registering a 0.5 per cent decline compared with 12 per cent in the U.S.

 

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'Hot' fails to impart the fact chronic demand/supply imbalance in housing has created a crisis where a basic necessity of life - housing,is increasingly unaffordable or unavailable for millions of Canadians. Worse, governments shrug at it or institute ineffective1/4- measures

HousingCrisis ClimateCrisis

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