Several factors contribute to the housing crisis in Canada:
- Rising Housing Prices: In many Canadian cities, housing prices were increasing at a faster rate than incomes, making it difficult for many people, especially first-time homebuyers, to enter the market.
- Limited Housing Supply: Some regions faced challenges in keeping up with the demand for housing. This was particularly noticeable in major cities where urbanization and population growth were high.
- Speculation and Foreign Investment: Concerns were raised about the role of speculative investing and foreign buyers in driving up housing prices, particularly in cities like Vancouver and Toronto.
- Rental Market Challenges: The rental market was also a significant concern, with rising rents and a shortage of affordable rental units.
- Policy and Regulatory Issues: Policies around zoning, land use, and development approvals can impact the availability and affordability of housing. In some cases, regulations were seen as hindering the construction of new housing units.
- Economic Factors: Economic conditions, such as interest rates and employment levels, can also influence the housing market.