Globe editorial: Canada’s costly housing market needs a reality check

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Buyers need to rethink what an affordable home looks like – and owners need to realize their homes aren’t ATMs

that Ottawa had for decades abandoned this file, the Minister did not take the opportunity to announce a significant policy shift. So, his original comments ring as a disingenuous attempt to reassure homeowners.boom you are fortunate, not in need of special government attention. Even though homeowners tend to vote, giving them the ear of sympathetic politicians, they have no right to never-ending real estate price gains.

A balancing act Ottawa might plausibly hope for is income to rise more than home prices over several years, thereby slowly reducing the imbalance between earnings and housing costs. In Canada the price to income ratioEven just a steadying of home prices could over time allow that ratio to moderate to something more affordable.

Which raises another question: What does “affordable housing” now mean? Developers and city planners use a simple rule – no more than 80 per cent of market rates – but where does that leave someone looking for a place to live?

 

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