Inflation & Prices
Home Affordability to Improve in Canada as Rates Fall and Incomes Rise, BMO Says
- But will take a long time to undo spike in costs: Guatieri
- Recent immigration surge led to ‘historic demand shock’
Homes for sale in Calgary.
Photographer: Todd Korol/BloombergThis article is for subscribers only.
One of Canada’s biggest banks says housing affordability is poised to gradually get better — but not enough to bring it close to pre-pandemic levels.
A combination of falling interest rates, roughly flat home prices and rising incomes will make buying a home easier for more Canadians, Bank of Montreal economists Robert Kavcic and Sal Guatieri wrote in a report to investors. Even in this scenario, however, affordability will still be “strained” by 2027, they said.