Trudeau wants to maintain housing prices while still being affordable

In an interview with the Globe and Mail, Prime Minister Justin Trudeau said the federal government plans to make housing affordable for young Canadians while preserving property values ​​for current owners.

However, some experts argue that this is not easy to do.

Robert Kavcic, chief economist at BMO Capital Markets, said there are three general ways to make the housing market affordable. The first is the reduction of housing prices and the second is the reduction of interest rates.

The third way is to see the income grow. Unfortunately, it takes a while for house prices to grow by 20 or 30% per year, but this is something that happens gradually over time.

According to experts, the notion that housing can be made affordable without lowering prices is "in theory" possible, but it will take a long time to get there.

If prices don't rise in the next 15 years and earnings are good, then affordability might be possible, but it's highly unlikely.

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