Canadian Housing Affordability Crisis Expected to Persist Despite Rate Cuts

Economists predict housing will remain unaffordable for many Canadians, even with falling interest rates and relaxed mortgage rules.

Average house prices in Canada have surged over 30% since April 2020, making home ownership increasingly unattainable.
Interest rates for the cheapest five-year fixed mortgages have fallen to around 4.75%, but this reduction has not significantly boosted home buying.
Despite recent policy changes, such as extending mortgage amortizations to 30 years, many potential buyers still find homes unaffordable.
The influx of immigrants has pushed Canada's population to record levels, further increasing housing demand and prices.
Economists estimate it could take a decade for housing affordability to return to pre-pandemic levels, due to high prices and slow income growth.