Housing Supply and Affordability in Canada
Published:
with Nathaniel Baum-Snow and Aled ab Iowerth
In preparation for the Canadian Journal of Economics (invited “Viewpoint” article)
Abstract:
Since 2000, housing markets across Canada have experienced growth rates in prices that far exceed corresponding rates of household income growth. However, rents have grown at similar rates to household incomes. Annual per capital housing unit new construction rates have remained steady at about 0.007 across all types of markets since 1991, with the composition shifting markedly from single-family homes to multifamily structures. Purpose-built rental construction has recently risen from very low levels. To understand these patterns, we consider local regulatory environments and infrastructure provision, rental housing supports, sources of housing demand growth, and Canada’s macroprudential regulatory institutions and environment.