Extremely high shelter prices exact a compound cost for years thereafter in the form of lost discretionary cash flow for other spending, debt servitude and lost savings for other needs.
The US housing bubble that peaked last cycle in 2006 was epic and financially devastating for the masses, the highly levered financial system, the economy and government budgets in the 12 years since and counting.
Unfortunately, over the last decade, Canada has managed to eclipse the U.S in a who has the ‘worst housing market’ contest.
This does not bode well for our economic strength and soundness over the next decade or so.
See more here: Canada v.s. USA: which housing market has it worse.
The graphic on the left offers a succinct comparative glimpse.
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