Buying a house may remain out of reach for many Canadians for the foreseeable future, with mortgage costs unlikely to fall enough to offset lofty home prices and weak spending power, economists and real estate agents say. 0 Even with expectations that Bank of Canada will keep cutting rates in the coming months, the issue of home affordability - which has strangled Prime Minister Justin Trudeau’s poll numbers - is unlikely to fade before the next election.
The mandate for the Liberal minority government ends at the end of October 2025, but an election could come well before then, with the Conservative opposition spoiling to end Trudeau’s nine-year run at the top.
“You won’t get back to an affordable range for housing on a sustained basis for a decade,” Tony Stillo, director at forecasting and analysis group Oxford Economics, said last week at a conference.
That’s a relatively small problem (in terms of how many housed people are acutely impacted or even aware) in large sprawled cysts like the GTA. The unhoused population is visible in small localized spots. The vast remainder wouldn’t even hear about it if they didn’t read the news or don’t have to go to those spots. The very large city of Mississauga for example hasn’t heard or seen a peep about unhoused people. It’s only stories by the few that work specifically downtown. The backyards are as clean as ever and the birds are singing. I wish everyone was acutely aware.