Deconstructing Canada's Housing Markets: Finance, Affordability and Urban Sprawl
House prices have increased significantly in Canada over the past decade, driving household debt and residential construction activity to historical highs. Although macro-prudential tightening has slowed the pace of household borrowing in the last few years, house prices have continued to trend high...
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Format: | Elektronisch E-Book |
Sprache: | English |
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Paris
OECD Publishing
2014
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Schriftenreihe: | OECD Economics Department Working Papers
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Online-Zugang: | UBA01 UBG01 UEI01 UER01 UPA01 UBR01 UBW01 FFW01 FNU01 EUV01 FRO01 FHR01 FHN01 TUM01 FHI01 UBM01 Volltext |
Zusammenfassung: | House prices have increased significantly in Canada over the past decade, driving household debt and residential construction activity to historical highs. Although macro-prudential tightening has slowed the pace of household borrowing in the last few years, house prices have continued to trend higher, and affordability remains a major challenge in urban centres. First-time home buyers must therefore spend more of their incomes to purchase a house and are vulnerable to future interest rate hikes. Overbuilding in the condominium sectors of some cities appears to be a source of risk, especially if a major price correction in these segments spills over into other markets. The country benefits from a sound and effective housing finance system, which performed well throughout the global financial crisis thanks to strong regulatory oversight and explicit government backing of the mortgage market. Nonetheless, the dominance of the crown corporation CMHC in the mortgage insurance market concentrates a significant amount of risk in public finances. Improving competitive conditions in the mortgage insurance market could help diversify these risks and reduce taxpayer contingent liabilities, while introducing coverage limits on loan losses would better align private and social interests. There may be a shortage of rental housing in several cities, especially in the range that low-income households can afford. Urban planning policies have resulted in low-density residential development which contributes to relatively high transport-related carbon emissions. Addressing these externalities requires stronger pricing signals for land development, road use, congestion and parking, combined with better integration of public transit planning. To prevent the marginalisation of low-income households, planning policies should support social mix and increase incentives for private-sector development of affordable housing. This Working Paper relates to the 2014 OECD Economic Review of Canada (www.oecd.org/eco/surveys/Canada) |
Beschreibung: | 1 Online-Ressource (47 Seiten) 21 x 29.7cm |
DOI: | 10.1787/5jz0zbg20h34-en |
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spelling | Cheung, Calista Verfasser aut Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl Calista Cheung Paris OECD Publishing 2014 1 Online-Ressource (47 Seiten) 21 x 29.7cm txt rdacontent c rdamedia cr rdacarrier OECD Economics Department Working Papers House prices have increased significantly in Canada over the past decade, driving household debt and residential construction activity to historical highs. Although macro-prudential tightening has slowed the pace of household borrowing in the last few years, house prices have continued to trend higher, and affordability remains a major challenge in urban centres. First-time home buyers must therefore spend more of their incomes to purchase a house and are vulnerable to future interest rate hikes. Overbuilding in the condominium sectors of some cities appears to be a source of risk, especially if a major price correction in these segments spills over into other markets. The country benefits from a sound and effective housing finance system, which performed well throughout the global financial crisis thanks to strong regulatory oversight and explicit government backing of the mortgage market. Nonetheless, the dominance of the crown corporation CMHC in the mortgage insurance market concentrates a significant amount of risk in public finances. Improving competitive conditions in the mortgage insurance market could help diversify these risks and reduce taxpayer contingent liabilities, while introducing coverage limits on loan losses would better align private and social interests. There may be a shortage of rental housing in several cities, especially in the range that low-income households can afford. Urban planning policies have resulted in low-density residential development which contributes to relatively high transport-related carbon emissions. Addressing these externalities requires stronger pricing signals for land development, road use, congestion and parking, combined with better integration of public transit planning. To prevent the marginalisation of low-income households, planning policies should support social mix and increase incentives for private-sector development of affordable housing. This Working Paper relates to the 2014 OECD Economic Review of Canada (www.oecd.org/eco/surveys/Canada) Social Issues/Migration/Health Urban, Rural and Regional Development Economics Canada https://doi.org/10.1787/5jz0zbg20h34-en Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Cheung, Calista Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl Social Issues/Migration/Health Urban, Rural and Regional Development Economics Canada |
title | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl |
title_auth | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl |
title_exact_search | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl |
title_exact_search_txtP | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl |
title_full | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl Calista Cheung |
title_fullStr | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl Calista Cheung |
title_full_unstemmed | Deconstructing Canada's Housing Markets Finance, Affordability and Urban Sprawl Calista Cheung |
title_short | Deconstructing Canada's Housing Markets |
title_sort | deconstructing canada s housing markets finance affordability and urban sprawl |
title_sub | Finance, Affordability and Urban Sprawl |
topic | Social Issues/Migration/Health Urban, Rural and Regional Development Economics Canada |
topic_facet | Social Issues/Migration/Health Urban, Rural and Regional Development Economics Canada |
url | https://doi.org/10.1787/5jz0zbg20h34-en |
work_keys_str_mv | AT cheungcalista deconstructingcanadashousingmarketsfinanceaffordabilityandurbansprawl |