News & Insights

In January, Canada’s Consumer Price Index (CPI) rose 5.1%, the fastest annual increase in over three decades. This is worrying, but what is even more concerning to us, here at Generation Squeeze, is that the true rate of inflation is much higher than this CPI reading suggests. Last time, we discussed how CPI, as constructed by Statistics Canada (StatsCan), does a poor job at representing inflation because it doesn’t adequately respond to changes in home values.

Canadians are now hearing a lot about our inflation woes. But it’s surprising that this story is only just taking center stage when rampant inflation to the largest expense faced by all Canadians – housing – has been the norm for the last 20 years.

Like many Canadians, you might be worried about rising prices, a.k.a inflation. Seeing prices go up can be an unpleasant experience. You’re working as hard as ever, but your paycheque doesn’t go as far as it used to. The price of everything - from food to furniture to gas - is rising. But nowhere is inflation more evident than in the housing market.

We all care about being treated fairly. It’s part of our sense of justice and equality, and our intuitions about getting what we feel we deserve. In conversations about housing, people on all sides of the debate claim to be defending what is fair. This isn’t necessarily a bad thing.

Not everyone agrees with the recommendations, especially the idea of a Million-Dollar Homes Surtax. But reasonable debate is a key part of a well-functioning democracy, so thanks to the media for fostering this public good.

When it comes to housing in Canada, the status-quo has created inequality and complacency. Inequality, because rising housing prices lead to wealth windfalls for some while eroding affordability for others, which limits their chances to live up to their potential and enjoy life.  Complacency, because some homeowners reap wealth windfalls from skyrocketing prices without recognizing that their gains help to keep many others on the outside looking in.  It’s time for creative disruption to this status quo. It’s time to break Canada’s addiction to high and rising home values, by rebuilding our housing system around the concept of “Homes First. Investments Second.” 

[Article written in French] Le statu quo sur les enjeux de logement au Canada a engendré d’importantes inégalités, ainsi qu’une complaisance préoccupante. Des inégalités, parce que l’augmentation des prix de l’immobilier permet à certaines personnes de s’enrichir tout en réduisant l’accessibilité des maisons pour d’autres, ce qui limite leurs chances de réaliser leur plein potentiel et de profiter de la vie.

As a force for intergenerational fairness, Generation Squeeze is a unique but mighty powerhouse in the world of politics. That we are right in the thick of things is reflected in the fact that key issues of intergenerational justice are front and centre in the throne speech – housing affordability, family affordability (especially child care), and climate change.

Climate change features in the platforms of all parties in the federal election, though the breadth and depth of their commitments vary. So how do you know if the actions to which parties are committing will really move us towards the goal of holding climate change to 1.5 degree Celsius, as agreed to by Canada in the Paris Agreement?