Discussion about this post

User's avatar
Andrew Snow's avatar

How do wages (and thus shelter affordability) figure into these models? Is this simply captured in the inflation figure?

What about I recall hearing stories of the 1970s and earlier that it was harder to get a mortgage than today as banks were more risk-averse in lending to individuals.

Expand full comment
Michael B's avatar

I think your missing variable is population growth. The 1950 through 1970 are the peak years of a) the baby boom, and b) post-war immigration. Rental pricing is decided at the margin, and people needed ever-more space through those decades. And the stock of rental changes slowly, with a long delay. https://en.wikipedia.org/wiki/Population_of_Canada#/media/File:Canada_immigration_graph.png

Expand full comment
9 more comments...

No posts