CMHC report comes up short on housing affordability measures

225-page report that involved 18 academics and a full-press push from Canada Mortgage and Housing Corporation (CMHC) staff has come up lame in suggestions on how to tamper high house prices in major Canadian cities.

When asked what findings surprised him in what CMHC is billing as the “the most thorough examination of house price patterns ever completed in Canada,” report author and CMHC deputy chief economist Aled ab Iorwerth said it was the clear correlation between rising incomes and higher home prices.

Examining Escalating House Prices in Large Canadian Metropolitan Centres, released February 7, showed disposable income in Vancouver increased 36.2 per cent from 2010 to 2016 while it increased 19.2 per cent in Toronto, the highest in Canada. Average housing prices increased 48 per cent and 40 per cent, respectively, in the two cities, also the highest in Canada.

“Local wealth proved an important factor in the home price increases,” ab Iorweth said.

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