The Globe and Mail reports in its Friday, Nov. 24, edition that Finance Minister Chrystia Freeland's fall economic statement acknowledges that the biggest worry for Canadians is housing.
The Globe's Tom Kellar writes that the Trudeau government does not have a timely fix for this issue.
National Bank of Canada economist Stefane Marion said in a note on Tuesday: "Canada's record housing supply imbalance, caused by an unprecedented increase in the working-age population, means that there is currently only one housing start for every 4.2 people entering the working-age population. ... Under these circumstances, people have no choice but to bid up the price of a dwindling inventory of rental units. The current divergence between rental inflation (8.2 per cent) and CPI inflation (3.1 per cent) is the highest in over 60 years. ... There is no precedent for the peak in rental inflation to exceed the peak in headline inflation. Unless Ottawa revises its immigration quotas downward, we don't expect much relief for the 37 per cent of Canadian households that rent."
Mr. Kellar is dubious that the Trudeau government will take Mr. Marion's advice.
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