Should Canada's government get involved in the housing market?

By Sudarshan Sitaula

Prices in the housing sector are rising fast, and a new poll reveals that many Canadian citizens have had enough. According to a report released this week by the Angus Reid Institute, a non-profit and non-partisan public interest research firm, nearly half of Canadians living in urban areas believe that the cost of buying a house is high or even unreasonably high. Moreover, a full 66 percent—that’s two out of every three polled—believe that the Canadian government should get more involved in regulating real estate prices to keep the sector fair and affordable.

The poll showed that residents of the Metro Vancouver and GTA areas were the most frustrated with housing prices, with 70 percent and 46 percent of those polled respectively asserting that home prices are unreasonably high. But sentiments were found to be similar across Canada with 45 percent or more residents in Halifax, Edmonton, Calgary, Winnipeg, and Montreal also viewing home prices as “high” or “unreasonably high.”

Will interference from the government help or harm the housing sector? According to the CBC, the New Canada Mortgage and Housing Corporation (CMHC) has already implemented a new rule in Ottawa which will prospective buyers of homes worth $500,000 or more to provide a down payment of at least 10 percent – the idea is to decrease the demand for $500,000-plus homes and thus to stabilize the market.

The consequences of this rule could be interesting. The poll also revealed that, regardless of the new rule, three-quarters of Canadians have no plans to buy any real estate this year. But if housing prices drop, a newfound interest in homebuying could arise in time and turn the industry around.

[SOURCE: Angus Reid via CBC]


Featured Articles

Broadridge study reveals huge impact of AI on C-suite

Broadridge Financial Solutions spoke to 500 C-suite executives from across the globe, many of whom said AI was significantly changing the way they work

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

Technology & AI

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy