News & Insights

Our research identifies low-interest rates as a contributing force driving the run-up in home prices. So we were not surprised to see the market cool off when The Bank of Canada increased interest rates, undermining the cheap credit system that helped buyers bid up home prices. The Bank of Canada managed to do the unthinkable - cool off one of the world's hottest housing markets - by raising interest rates. So why do they rarely ever mention this?

At a time when politicians are decrying Canada’s housing affordability crisis, it may come as a surprise that we choose to subsidize so generously many of the most securely housed Canadians through a home ownership tax shelter. A new study by Generation Squeeze Founder, Dr. Paul Kershaw, published by the Canadian Tax Journal revisits the Principal Residence Exemption (PRE), along with public support for reducing the home ownership tax shelter.

Finance Minister Chrystia Freeland emphasized the need for “fiscal restraint” in her recent budget. But that’s not what she delivered in a budget which includes $132-billion in deficit spending over the next five years. This adds about $6,100 in government debt for every Canadian under age 45 – most of which pays for spending used by the aging population. The Finance Minister piles on this debt partly because her budget turns a blind eye to the housing wealth accumulated by many in older generations.

A Gen Squeeze network member recently wrote to us to ask for more information about our analysis of spending by age in the recent federal budget. She wanted to know how we concluded that the bulk of new federal spending goes to supporting retirees ($190 billion by 2027/28). This is a great question, so we thought we’d share the answer with everyone.

Watching the natural world transform around us is a welcome reminder that change is possible, especially during these precarious times. This spring has brought with it a wave of interest in our work, making it even more inspiring than usual for us at Gen Squeeze. 

On April 3, the BC government released its latest housing action plan. This plan makes some important and bold moves. It also misses some key opportunities.

There is an untold story underpinning Canada’s plans to ramp up annual immigration targets from about 250,000 to half a million by 2025. More immigration allows provincial and federal politicians to dodge a hard conversation with baby boomers about taxes. By dodging it, we risk harming newcomers and boomers’ kids and grandchildren.

2023 Federal Budget is choosing to beef up the retirement security of seniors more than the financial or climate security of those who follow them