Commentary
The housing crisis in Canada is apparent to everyone in this nation. It has become a major topic of conversation despite the federal government’s effort to deflect the conversation towards climate change.
Major banks are feeling the stress as their net interest margins are under pressure as they work with homeowners to restructure their mortgages. Many homeowners cannot hope to meet payments at higher rates. Make no mistake about this: What is happening in the housing market is a massive debt restructuring that has only just begun and will dramatically reduce the wealth of millions of Canadians.
The mainstream media, politicians, and ordinary citizens talk about the housing affordability crisis for good reason. Given the incomes of Canadians, most people seeking new homes have been eliminated from the market, especially in some areas.
Different areas have this problem to various degrees. The corporate media, most of which are located in and/or work in a five-kilometre radius of the CBC building in downtown Toronto, have a myopic view that the nation’s largest city constitutes Canada.
However, when we examine other parts of the country, there are still very good places to live where life may be expensive but is feasible. Given the trend towards remote work, many should consider moving to more affordable areas. Things will not get better anytime soon. When more expensive housing markets crash, home prices will decline and the local economy will incur a severe economic downturn. Homes may be more affordable to purchase but fewer people will be able to afford to buy things.
