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."
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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."
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Toronto considers new tax for homeowners to help curb soaring house prices
Toronto City Council will consider asking the provincial government to introduce a home speculation tax during a meeting this week, as it continues to look for new ways to rein in the city's soaring home prices.
The idea was first proposed by Eglinton-Lawrence Coun. Mike Colle during the December meeting of city council before being referred to Mayor John Tory’s executive committee for further consideration.
At a meeting scheduled to begin tomorrow, councillors will have the final say on whether the city will formally ask Queen's Park to implement a “home Speculation and home flipping tax” locally.
It is not immediately clear what form such a tax could take, however in his original motion Colle referenced a 50 per cent land speculation tax that was “credited with slowing the extreme increase in property values in Toronto in the 1970s.”
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Toronto City Council will consider asking the provincial government to introduce a home speculation tax during a meeting this week, as it continues to look for new ways to rein in the city's soaring home prices.
The idea was first proposed by Eglinton-Lawrence Coun. Mike Colle during the December meeting of city council before being referred to Mayor John Tory’s executive committee for further consideration.
At a meeting scheduled to begin tomorrow, councillors will have the final say on whether the city will formally ask Queen's Park to implement a “home Speculation and home flipping tax” locally.
It is not immediately clear what form such a tax could take, however in his original motion Colle referenced a 50 per cent land speculation tax that was “credited with slowing the extreme increase in property values in Toronto in the 1970s.”
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