b'REAL ESTATECANADA\'SHOUSING CRUNCHBy Matthew BradfordHigh prices, rising interest rates and low inventorycontinue to challenge relocation providers in the housing spaceF inding safe and affordable"Among the broadest trends we\'re seeingsupply stressors, the Canada Mortgage accommodation is a priority inin Canada is the ongoing limited avail- and Housing Corporation estimates it employee mobility. Doing soability of listings," says Shaun Cathcart,will take the construction of upwards of amidst rising housing costs andsenior economist with the Canadian Real3.5 million homes by 2030 to restore a limited supply makes housing oneEstate Association (CREA). "This shortagesemblance of affordability.of the biggest challenges facing employersof inventory is keeping prices high, which and their relocation service providers. is impacting decisions to relocate." REGULATIONS Mobility professionals are all too familiarIn a May 2023 report, CREA reportedSeveral factors are adding strain to with the challenges they face today ina 4.3 per cent jump in average CanadianCanada\'s housing crunch. For one, Cath-finding places for Canadian assignees tohouse prices since the month prior and acart says, buying a house has become more stay. For years, mobility destinations like17 per cent climb since the beginning ofdifficult as a result of the Bank of Canada\'s Vancouver and Toronto have topped thethe year. Its research shows that new list- decision to raise interest rates to curblists of the least affordable housing andings only increased by 1.6 per cent, repre- inflation: "When you consider thatrental markets in the world. Meanwhile,senting a 20-year low. Bank of Canada lending rates started at a nationwide, real estate markets haverecord low of 0.25 per cent and increased posted exponential growth, driven Public sector leaders are also well aware ofto five per cent as of July 12, 2023, and partly by skyrocketing demand and Canadas housing strain. And while movesalso consider the stress test\'s impact on dwindling availability. are being made to tackle affordability andhow much a mortgagee can borrow, you 28PERSPECTIVES Fall 2023'