Abstract

This empirical study measures the prevalence and incidence of housing affordability problems in Canada in 1972, 1976, and 1983. It shows the affordability problem has not been improved by the major effort the Canadian governments made during the 1970s. Rent controls have not been adequate in reducing affordability problems. Moderate intervention in the housing market are not enough to help low income households attain affordable housing. The problem's resolution may require a major effort to stimulate housing supply, and by direct government involvement, adjustment in creating new methods and institutions for building and delivering housing services. Housing affordability problems will remain unresolved in the absence of major income redistribution programs.

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