Few Good Solutions as Home Affordability Plummets
Charles St-Arnaud, the chief economist at Alberta Central, the central bank for the province’s credit unions, started out his inquiry with a simple question: How far would prices need to fall, or would incomes need to rise, to make housing affordable again in Canada?The answer for most cities in Canada is “too much.”Mr. St-Arnaud’s research, published this month, presents a major obstacle to efforts to make housing in Canada more affordable. It suggests that the proposals being offered by many politicians — building more houses to lower prices by increasing supply — are unlikely to make a big difference.By most…
