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Canada Housing Crisis? Canada is facing a severe housing crisis marked by skyrocketing prices, increased household debt, and challenges with affordability. Since the financial crisis of 2008, housing prices have surged by 80% across the country, with cities like Vancouver and Toronto seeing price hikes of over 100%. The crisis highlights a stark disparity in housing wealth distribution, with the wealthiest 20% of Canadian households holding 63% of the total real estate net worth, whereas the bottom 40% possess a mere 2%. In today’s video, our focal topic: “Canada housing crisis explained," will shed more light on this worrisome situation. As we proceed, please stay tuned and watch until the end.
Why Homeowners are Hiking Housing Prices

Let us begin our discussion with this critical factor on why there is a housing crisis in Canada. In Canada, homeowners play a role in the increase in housing prices due to several factors. A major contributor is the high number of investment properties, as more investors buy homes, often leaving them empty or renting them out. This situation can increase prices in specific market segments and create a chain reaction affecting other property types. Additionally, foreign investments, sometimes linked to money laundering through real estate deals via shell companies, have also driven up prices in key cities like Vancouver and Toronto.
These trends have made it tougher for first-time buyers to enter the market, as they encounter greater competition and higher costs. Furthermore, the imbalance between demand and supply in the housing market, along with limited new construction and strong demand, has worsened the situation. Despite these hurdles, some homeowners are open to seeing home values decrease to enhance affordability for others, with a Nanos poll showing that 70% of participants would be pleased or somewhat pleased to witness a drop in home prices.

Impact of Canada's Housing Crisis on Immigrants
Canada's image as a friendly destination for newcomers may be jeopardized by the current housing affordability crisis, which is particularly affecting immigrants, according to a survey conducted by Angus Reid. The survey revealed that 28% of Canadians are contemplating leaving their province due to high housing costs, a figure that rises to 39% among those who have lived in Canada for a decade or less. The report noted that as more immigrants pursue the Canadian dream from overseas, many who have arrived in recent years are finding it less of a dream and more of a nightmare.' For immigrants who have been in Canada for 11 years or more, 30% are considering leaving their province, which is closer to the national average.
The survey, which was conducted in June 2024 with 4,204 Canadians, highlights dissatisfaction that correlates with housing costs in various Canadian cities while also indicating that a slight majority of respondents remain optimistic about improvements in affordability in the coming years. Home prices in numerous Canadian cities have surged dramatically, and rental vacancy rates have plummeted, prompting economists to warn that the crisis could escalate to 'even more alarming levels' without significant new construction.

Government Actions on the Housing Crisis in Canada
The Canadian Government is taking various steps to tackle its housing crisis, drawing on strategies from the post-World War Two period and organizing a national summit to engage housing stakeholders. The Government aims to reintroduce a method of using pre-approved designs for rapid and cost-effective home construction, reminiscent of the post-war strategy. Furthermore, the proposed national summit will focus on gathering actionable solutions from housing stakeholders, who will commit to providing quarterly updates on their progress.

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