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Examining Escalating House Prices in Large Canadian Metropolitan Centres

6 Feb 2018

As the U. S. economists Ed Glaeser and Joseph Gyourko pointed out, “High prices always and everywhere reflect the intersection of strong demand and limited supply.” We found that over the last seven years overall, the supply response of new housing in Toronto and Vancouver was weaker than might have been expected given the upsurge in demand. [...] We fully recognize that this is the beginning of a process of improving Given the importance of constraints on the supply side of the market, we examined several metrics, including geography. [...] Some of the gaps we have already helped to fill include data on the degree of foreign ownership of condominiums in large Canadian cities, turnover rates in rental markets, and the prices and square footage of newly-built condominiums. [...] Such a potential for housing markets to affect the rest of the economy suggests the scale that housing has reached in the economy. [...] Prices in the Greater Toronto and Greater Vancouver areas increased the average price for all of Canada, as these geographies account for such a large part of total home sales in the country.
economics economy investment science and technology condominium economic growth employment housing market interest investments mathematics prices statistics mortgage housing markets city regression error correction model economic inequality risks canada mortgage and housing corporation instrumental variables estimation cointegration
Pages
225
Published in
Ottawa, ON, CA

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