Assessing House Prices in Canada

Abstract

This paper assesses house prices in 11 Canadian Census Metropolitan Areas (CMA) using the borrowing-capacity and the net-present-value approaches. The results indicate that by the end of 2018, house prices in most metropolitan areas are aligned with macroeconomic fundamentals. However, in Hamilton, Toronto, and Vancouver house prices have increased beyond the values implied by the fundamentals.

Affordable Rental Housing: Making It Part of Europe’s Recovery

“…The entity bears the rental risk and maintains the property while the landlord receives a below-market rent with some tax benefits.19 Measures that are not targeted at increasing supply but enhance access to credit and fuel demand for a given housing stock, risk pushing up prices up and worsen affordability. For example,Andrle and Plašil (2019) show that house prices in Canada responded rapidly to the households' ability to borrow.…”