Canadian government has to allow home prices to fall to make housing more affordable, experts say

The Canadian government is facing increasing calls from housing experts to reconsider its stance on home prices. Many specialists believe that without allowing a moderation in prices, Canada’s housing crisis will continue to strain families and individuals seeking affordable options. They argue that simply increasing the supply of homes may not be enough to bring down costs quickly enough.

Former Vancouver mayor and current Housing Minister Gregor Robertson has publicly stated that he doesn’t believe home prices need to fall, emphasizing stability and increased supply as the key to solving the crisis. However, this position has drawn criticism from those who warn that without a genuine drop in prices, affordability will remain out of reach for many Canadians.

Economists point out that housing costs have been rising much faster than household income, making ownership a distant dream for younger buyers and low-income families. They argue that a controlled decrease in prices would help lower the system-wide cost burden, even as efforts to build more homes continue.

Critics of sharp price drops caution that a sudden housing crash could harm the economy, particularly hurting recent buyers and eroding the wealth of retirees who rely on home equity. Instead, they suggest a balanced approach: mild price corrections paired with stronger rental protections, targeted subsidies, and measures to curb speculative investment.

Some experts worry that political realities—like homeowners’ resistance to value declines and seniors' influence at the ballot box—will make meaningful price decreases politically difficult. This could lead policymakers to favor solutions that protect current property owners, even if those solutions fail to improve affordability significantly.

Ultimately, stakeholders agree that addressing Canada’s housing affordability crisis will require a combination of policies. That includes tempering runaway price growth, boosting supply, and safeguarding vulnerable buyers. As the debate continues, experts emphasize that without allowing at least some fall in home prices, thousands of Canadians will remain locked out of the market.