Fact check: "Affordability is the best it's been in over a decade"

On March 25th, during Question Period, Prime Minister Mark Carney He stated: "Affordability is the best it's been in over a decade." Is that true?

This statement isn't entirely false, but it's far from true. There have been some slight improvements recently:

• Inflation has fallen dramatically compared to its 2022 peak.
• Wage growth has recently outpaced inflation
• Interest rates have fallen from their highest levels.
• In some cities, rents have stabilized or decreased slightly.
• Some housing affordability measures, particularly those based on mortgage payments as a percentage of income, have improved from their worst levels in 2023-2024.

Except that Mr. Carney said that affordability the best in over a decadeThis implies that we must compare it with 2015, and that's where the problem lies. The usual economic indicators do not support this assertion at all.

• Property prices are much higher than in 2015
• Rents are also much higher than they were ten years ago.
• Grocery prices are also much higher
• Insurance costs and several other services are also much higher.
• The cumulative increase in the cost of living over the past decade has outpaced income growth for most households.
• Although it has decreased somewhat, inflation is still higher than it was ten years ago.

The verdict

Mostly false or misleading.

About the Author

Philippe David

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Philippe David has been an IT consultant since 1985 and a blogger since 2006. He is the author of *Le Minarchiste Québécois* and later *Contrepoids*. He has also contributed to *Les 7 du Québec* and *Cent Papiers*. *Nord Libre/True North* is his most recent project.

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