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New report highlights housing affordability challenges across Canada

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From the Frontier Centre for Public Policy

By Wendell Cox

The year 2022 marked a concerning increase in “severely unaffordable” housing markets, extending beyond the scope of the six major markets.

The Frontier Centre for Public Policy’s Demographia Housing Affordability in Canada report, released today, cast a spotlight on the pressing issue of housing affordability in Canada. This comprehensive report offers a detailed analysis of middle-income housing affordability during the third quarter of 2022, focusing on 46 housing markets referred to as census metropolitan areas.

The report goes beyond the conventional analysis of property prices, delving into the intricate interplay between house prices and income. Price-to-income ratios, a crucial metric for assessing housing affordability, have gained global recognition. Esteemed institutions, including the World Bank, United Nations, OECD, and IMF, have endorsed this measurement. The Frontier Centre for Public Policy’s housing affordability index adopts a similar approach, utilizing the “median multiple” calculation. This calculation involves dividing the median house price by pre-tax median household income.

The report sheds light on the historical context of housing affordability within Canada’s six major markets – Vancouver, Calgary, Edmonton, Toronto, Montreal, and Ottawa – each with populations surpassing one million. The period from 1970 to the mid-2000s witnessed relative stability in the housing affordability landscape. However, by 2005, Vancouver’s market initiated a significant shift towards unaffordability, a trend that has only intensified since the mid-2000s.

The year 2022 marked a concerning increase in “severely unaffordable” housing markets, extending beyond the scope of the six major markets. The number of severely unaffordable markets surged from 18 in 2019 to 24 among the surveyed 46 markets. In contrast, the count of “affordable” markets dwindled from eight in 2019 to a mere three.

The advent of remote work, or “telecommuting” during the pandemic led to a surge in households seeking more spacious living spaces. This surge in demand outpaced supply, resulting in a “demand shock” that further exacerbated the challenges of housing affordability.

The epicentre of unaffordable housing primarily lies in British Columbia and Ontario. Notably, Vancouver and Toronto emerged as the most severely unaffordable major markets, ranking third and 10th least affordable among 94 markets in Demographia’s International Housing Affordability Report 2022. This phenomenon extended beyond Vancouver, impacting other markets in British Columbia. Similarly, the trend reached markets beyond Toronto, prompting a net interprovincial migration as households pursued more affordable housing options.

Amidst these challenges, four markets – Moose Jaw (SK), Fort McMurray (AB), Saguenay (QC), and Fredericton (NB) – have managed to uphold their affordability. The Canadian housing market faces intensified scrutiny, with analyses highlighting the formidable task of addressing the nation’s housing crisis. This includes restoring affordability and enabling home ownership amidst obstacles such as the scale of the issue and the capacity of the home-building sector.

At the heart of the crisis lies urban containment regulation, which has driven land prices to unsustainable levels, constraining housing supply for middle income households. This scenario arises from the deliberate intent of urban containment policies to inflate land prices. Disparities in land costs across markets play a pivotal role in housing affordability disparities. Government policies, like urban containment, unintentionally contribute to government-induced inequality by inflating land prices. Practical alternatives exist to revitalize housing affordability.

Migration to more affordable housing markets has become a priority for many, as evidenced by an unprecedented population shift away from major metropolitan areas towards regions with more affordable housing options. Ensuring affordability remains in these markets is pivotal. Neglecting this could lead to replicating the ongoing affordability crisis in regions that are currently more affordable, which could limit opportunities for future generations and impact Canada’s attractiveness as an international migration destination.

About the Frontier Centre for Public Policy The Frontier Centre for Public Policy is an independent, non-partisan think tank that conducts research and analysis on a wide range of public policy issues. Committed to promoting economic freedom, individual liberty, and responsible governance, the Centre aims to contribute to informed public debates and shape effective policies that benefit Canadians.

Wendell Cox is a Senior Fellow at the Frontier Centre for Public Policy. He is principal of Demographia.com, author of Demographia World Urban Areas and an author of Demographia International Housing Affordability (19 annual editions) and Demographia World Urban Areas. He earned a BA in Government from California State University, Los Angeles and an MBA from Pepperdine University. He served as a visiting professor at the Conservatoire des Arts et Metiers in Paris, a national university.

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Automotive

Auto giant shuts down foreign plants as Trump moves to protect U.S. industry

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MXM logo  MxM News

Quick Hit:

Stellantis is pausing vehicle production at two North American facilities—one in Canada and another in Mexico—following President Donald Trump’s announcement of 25% tariffs on foreign-made cars. The move marks one of the first corporate responses to the administration’s push to bring back American manufacturing.

Key Details:

  • In an email to workers Thursday, Stellantis North America chief Antonio Filosa directly tied the production pause to the new tariffs, writing that the company is “continuing to assess the medium- and long-term effects” but is “temporarily pausing production” at select assembly plants outside the U.S.

  • Production at the Windsor Assembly Plant in Ontario will be paused for two weeks, while the Toluca Assembly Plant in Mexico will be offline for the entire month of April.

  • These plants produce the Chrysler Pacifica minivan, the new Dodge Charger Daytona EV, the Jeep Compass SUV, and the Jeep Wagoneer S EV.

Diving Deeper:

On Wednesday afternoon in the White House Rose Garden, President Trump announced sweeping new tariffs aimed at revitalizing America’s auto manufacturing industry. The 25% tariffs on all imported cars are part of a broader “reciprocal tariffs” strategy, which Trump described as ending decades of globalist trade policies that hollowed out U.S. industry.

Just a day later, Stellantis became the first major automaker to act on the new policy, halting production at two of its international plants. According to an internal email obtained by CNBC, Stellantis North American COO Antonio Filosa said the company is “taking immediate actions” to respond to the tariff policy while continuing to evaluate the broader impact.

“These actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations,” Filosa wrote.

The Windsor, Ontario plant, which builds the Chrysler Pacifica and the newly introduced Dodge Charger Daytona EV, will shut down for two weeks. The Toluca facility in Mexico, responsible for the Jeep Compass and Jeep Wagoneer S EV, will suspend operations for the entire month of April.

The move comes as Stellantis continues to face scrutiny for its reliance on low-wage labor in foreign markets. As reported by Breitbart News, the company has spent years shifting production and engineering jobs to countries like Brazil, India, Morocco, and Mexico—often at the expense of American workers. Last year alone, Stellantis cut around 400 U.S.-based engineering positions while ramping up operations overseas.

Meanwhile, General Motors appears to be responding differently. According to Reuters, GM told employees in a webcast Thursday that it will increase production of light-duty trucks at its Fort Wayne, Indiana plant—where it builds the Chevrolet Silverado and GMC Sierra. These models are also assembled in Mexico and Canada, but GM’s decision suggests a shift in production to the U.S. could be underway in light of the tariffs.

As Trump’s trade reset takes effect, more automakers are expected to recalibrate their production strategies—potentially signaling a long-awaited shift away from offshoring and toward rebuilding American industry.

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Business

‘Time To Make The Patient Better’: JD Vance Says ‘Big Transition’ Coming To American Economic Policy

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JD Vance on “Rob Schmitt Tonight” discussing tariff results

 

From the Daily Caller News Foundation

By Hailey Gomez

Vice President JD Vance said Thursday on Newsmax that he believes Americans will “reap the benefits” of the economy as the Trump administration makes a “big transition” on tariffs.

The Dow Jones Industrial Average dropped 1,679.39 points on Thursday, just a day after President Donald Trump announced reciprocal tariffs against nations charging imports from the U.S. On “Rob Schmitt Tonight,” Schmitt asked Vance about the stock market hit, asking how the White House felt about the “Liberation Day” move.

“We’re feeling good. Look, I frankly thought in some ways it could be worse in the markets, because this is a big transition. You saw what the President said earlier today. It’s like a patient who was very sick,” Vance said. “We did the operation, and now it’s time to make the patient better. That’s exactly what we’re doing. We have to remember that for 40 years, we’ve been doing this for 40 years.”

“American economic policy has rewarded people who ship jobs overseas. It’s taxed our workers. It’s made our supply chains more brittle, and it’s made our country less prosperous, less free and less secure,” Vance added.

Vance recalled that one of his children had been sick and needed antibiotics that were not made in the United States. The Vice President called it a “ridiculous thing” that some medicines invented in the country are no longer manufactured domestically.

“That’s fundamentally what this is about. The national security of manufacturing and making the things that we need, from steel to pharmaceuticals, antibiotics, and so forth, but also the good jobs that come along when you have economic policies that reward investing in America, rather than investing in foreign countries,” Vance said.

WATCH:

With a baseline 10% tariff placed on an estimated 60 countries, higher tariffs were applied to nations like China and Israel. For example, China, which has a 67% tariff on U.S. goods, will now face a 34% tariff from the U.S., while Israel, which has a 33% tariff, will face a 17% U.S. tariff.

“One bad day in the stock market, compared to what President Trump said earlier today, and I think he’s right about this. We’re going to have a booming stock market for a long time because we’re reinvesting in the United States of America. More importantly than that, of course, the people in Wall Street have done well,” Vance said.

“We want them to do well. But we care the most about American workers and about American small businesses, and they’re the ones who are really going to benefit from these policies,” Vance said.

The number of factories in the U.S., Vance said, has declined, adding that “millions of workers” have lost their jobs.

“My town [Middletown, Ohio], where you had 10,000 great American steel workers, and my town was one of the lucky ones, now probably has 1,500 steel workers in that factory because you had economic policies that rewarded shipping our jobs to China instead of investing in American workers,” Vance said. “President Trump ran on changing it. He promised he would change it, and now he has. I think Americans are going to reap the benefits.”

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