Canada’s housing crisis deepens as pre-construction sales plummet

Canada’s housing affordability crisis is expected to worsen as pre-construction condominium sales hit record lows, jeopardizing funding for new housing projects. Investors, who typically drive these sales, are retreating due to high mortgage costs, lower capital appreciation prospects, and uncertainty in the housing market. This decline in pre-sales signals a slowdown in construction starts, further exacerbating the housing shortage.

Despite government measures like relaxed mortgage rules, experts predict the market will remain unbalanced for the next four to five years.

The drop in pre-sales is attributed to several factors including rising interest rates and increased housing supply in major cities. This situation has severely impacted Prime Minister Justin Trudeau’s approval ratings, despite recent government efforts to address the crisis.