Prime Minister Justin Trudeau appears to believe he can amend a heretofore inviolate law of economics: that of supply and demand.in which he talked about housing affordability. He was asked whether current homeowners will have to accept some sacrifices so aspiring homeowners – who are presently priced out – can enter the market.
Much of this is also true. Many Canadians are relying on the equity in their homes to fund their retirement, because of poor savings and the declining prevalence of private-sector pensions. This would defy the law of supply and demand. He might as well ask the apple coming loose from the tree to fly straight up.
There is really only one way to improve affordability while not lowering home prices, and that is if housing prices stagnate and incomes catch up. This happened after the real-estate crash in Toronto in the 1990s, and in Calgary after the commodity bust of the 2010s.