
Le 25 mars dernier pendant la période de question, le Premier Ministre 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.