New study reveals intensified housing inequality in Canada from 1981 to 2016
New study reveals intensified housing inequality in Canada from 1981 to 2016
By Yushu Zhu
Assistant Professor, Faculty of Urban Studies and Public Policy, Simon Fraser University
December 23, 2021
Driven by the neoliberal belief in the superiority of the free market, the housing policy in Canada has shifted from a welfare-oriented policy to a market-oriented one over the past four decades, encouraging home ownership, deregulation and private consumption.
Housing financialization, the transformation of housing from a human right to an investment opportunity, has been driven by the federal government primarily through financial market deregulation and a financial practice called mortgage securitization.
Much of the debate about the housing crisis has focused on the market imbalance between supply and demand, citing factors such as foreign investment and lack of market supply. However, many housing problems today need to be viewed in the historical context of the housing system restructuring, which keeps housing and wealth inequality alive and well.
Using the historical census data of five metropolitan areas — Toronto, Vancouver, Montreal, Edmonton and Calgary — from 1981 to 2016, our study reveals deeply entrenched housing inequality in accessing affordable housing in the post-1990s neoliberal era. Both neoliberal housing policies and housing financialization are important contributors to this intensified housing inequality.
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