How the housing crisis damaged Canada’s economy and productivity
Canada’s housing crisis is increasingly being recast as a productivity crisis, with researchers and policy experts arguing high home prices, restrictive zoning, and heavy investment in real estate are undermining national economic growth. Experts from Harvard’s Growth Lab, UBC, and the University of Toronto say capital is being diverted from machinery, technology, and business expansion into existing homes, while expensive housing is also driving young workers and international talent out of major cities. They warn Canada’s economy has become overly dependent on rising property values, leaving the country richer on paper but weaker in jobs, innovation, and long-term competitiveness.
