Housing prices are spiraling out of control, resulting in an Intergenerational Injustice, said Canada's Deputy PM

Chrystia Freeland in Halifax on 12 April. Image Credit: Canadian Press/REX/Shutterstock.

Chrystia Freeland, the finance minister, said the problem is her top domestic concern amid the economic problem. As politicians struggle to rein in a spiraling affordability crisis, Canada's finance minister has described the country's out-of-control housing prices as an "intergenerational injustice."

Chrystia Freeland, Canada's deputy prime minister, stated that the issue is her top domestic concern.

"We had a better chance of buying a home and starting a family than young people today, and we cannot have a Canada where the rising generation is denied the dream of homeownership," she told reporters Monday, calling the current situation "shocking."

According to the OECD, Canada has the largest gap between income and house prices in the G7, and two of its major cities, Vancouver and Toronto, frequently appear in rankings of international real estate booms.

The country's average selling price for a house reached C$816,720 (US$647,340 or £497,101) in February, a 20 percent increase over the previous year. Nova Scotia had the highest increase of any region, with house prices increasing by 35% since last year. Kingston, Ontario, saw the greatest increase, with prices rising 44 %.

Politicians and economists have expressed concern that such gains are unsustainable, but experts believe there are no easy fixes for the situation, which has been fueled in part by cheap lending rates, market speculation, and a lack of new housing.

In an effort to keep property prices from spiraling out of control, the Liberal government placed a two-year restriction on foreign house purchases in its budget last week. It also committed to invest C$10.14 billion in housing and to speed up the construction of new homes, with Freeland blaming a lack of housing stock as a major cause of price rises.

"We can't have the fastest-growing population in the G7 without the fastest-growing housing stock," she explained.

Housing affordability is becoming a more prominent issue in elected leaders' re-election campaigns. Doug Ford, the premier of Ontario, who is up for re-election in June, has blamed communities for delayed zoning processes, claiming that delays push up expenses.

"Believe it or not, guys, it can take four to six years for (developers) to apply for a permit," he stated late last year. "Can you tell me where in North America it takes four to six years?"

Pierre Poilievre, a Conservative leadership contender, has made home affordability a priority in his campaign. The frontrunner criticized "big city gatekeepers" in a viral videotaped over the weekend in Vancouver, arguing that the system was designed to keep real estate investors affluent.

Statistics Canada released fresh statistics on Tuesday that highlighted the country's housing market's "inequalities."

According to data released by the national agency, "multiple-property owners control about one-third of all residential properties" and "the top 10% wealthiest owners own around one-quarter of residential housing value."

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