The Bank of Canada is in a difficult position policy-wise given that the housing affordability crisis is no longer limited to the traditional powerhouse markets of Toronto and Vancouver, according to National Bank economist Warren Lovely.
Previously proposed approaches to addressing the problem almost always took into account just the two red-hot markets – an understandable stance when looking at the cities’ red-hot numbers from 2015 to 2019, Lovely said.
“We’re seeing an erosion in affordability really across the country,” Lovely said in an interview with BNN Bloomberg. “We’ve had a significant reliance on housing in our Canadian economic model. At the same time, affordability is getting away from a lot of Canadians and may require a policy response, not just from politicians contesting the election, but ultimately from our monetary policy makers as well.” #SANDI HALPERN # SOLD # LEASED # HOT HOUSING MARKET
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