Canadians finding homes too expensive in cities where they seek jobs, says housing agency


Corporation for Mortgages and Housing of Canada (CMHC) says that high housing costs are restricting the mobility of the population in the country, since Canadians are discovering that it is too expensive to buy or rent in cities where they look for jobs.

The Federal Housing Agency said that its analysis shows that an increase of one percent of housing prices in a destination city leads to a corresponding decrease of one percent in the number of people who move there.

Since 1990, the percentage of households in Canada that move every year, even within the municipalities, has decreased from almost 17.8 percent to only 10.1 percent in 2020.

“This trend reflects many factors, including population aging and technological changes, but housing costs also have a role to play,” said the deputy director of CMHC surrounded ab Iorwerth in an online publication.

He said that the inability to move due to the high housing costs is felt by both current and new workers in the workforce, which limits the development of skills and reduces the economic growth of the main cities.

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The federal government has promised to make almost 3.9 million homes available to 2031. Andrew Chang explains why reducing prices is so tense and how to address the housing crisis may require a radical change in the way we see the property of the property of the dwelling.

“When choosing where to live and work, the Canadians not only look at the salary increase they could obtain. They must be realistic about housing costs if they have to move to a new location,” Ab Iorwerth wrote.

“And they can give up the opportunities given by a new work that improves their skills and knowledge, and hence the country’s productivity, if they cannot allow to cover the cost of housing after moving.”

Subsequently, employers in cities with more expensive homes are forced to offer higher wages to attract qualified workers to compensate for their cost of living, which increases commercial expenses and reduces productivity.

The analysis said that Toronto, one of the two most expensive cities in the country to buy a new house, could increase its population by three percent if they doubled their home in the next decade.

Ab Iorwerth said that, although many attribute the lack of affordability in Toronto and Vancouver to their growing populations, the data show that Calgary and Edmonton have remained relatively more affordable despite the growth of the population faster in the last two decades.

“The reason for this is that more housing supply maintains housing prices under control in relation to income, which in turn attracts people,” he wrote.

“Population growth can accommodate if there is enough housing supply. In contrast, if there is not enough housing supply, then more people who arrive in a city will lead to higher prices in housing that limit the growth of the city ”



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