Inflation isn't the main factor driving Canada's sky-high housing costs, experts say
A federal government committee is examining inflation and housing prices in tandem. As Canadian housing prices continue their dizzying climb to record highs, the federal Conservatives are defining the problem as a "housing inflation crisis."
That description dovetails neatly with the ongoing debate about Canada's inflation rate, now at a 30-year high of 4.8 per cent. But some experts warn that pairing housing costs with inflation could obscure the actual causes of surging home prices.
"These issues have predated our conversations about inflation, or even concerns about inflation," said Murtaza Haider, a professor in real estate management at Ryerson University.
"To assume as such, we would make the mistake of thinking that if we solve the inflation problem, we will solve the housing problem and that would be a big mistake."
.
A federal government committee is examining inflation and housing prices in tandem. As Canadian housing prices continue their dizzying climb to record highs, the federal Conservatives are defining the problem as a "housing inflation crisis."
That description dovetails neatly with the ongoing debate about Canada's inflation rate, now at a 30-year high of 4.8 per cent. But some experts warn that pairing housing costs with inflation could obscure the actual causes of surging home prices.
"These issues have predated our conversations about inflation, or even concerns about inflation," said Murtaza Haider, a professor in real estate management at Ryerson University.
"To assume as such, we would make the mistake of thinking that if we solve the inflation problem, we will solve the housing problem and that would be a big mistake."
.