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Canada’s Housing Minister Says Home Prices Must Drop to Restore Affordability

In a notable shift, Federal Housing Minister Gregor Robertson told the House of Commons finance committee that average home prices in Canada must decline to bring affordability back within reach for Canadians.

Speaking before MPs on the Liberal government’s new affordability legislation, Robertson clarified that while individual property values don’t necessarily need to plunge, the overall average price of homes must adjust downward — primarily through the construction of more affordable housing.

Conservative MP Aaron Gunn pressed Robertson on earlier remarks from May, when he had said home prices did not need to fall. Robertson now says the path to affordability lies in increasing supply at the lower end of the market, not relying solely on demand-side measures.

The minister pointed to Bill C-4, which proposes up to $50,000 in federal tax relief for first-time homebuyers, and the creation of the new Build Canada Homes agency, as key tools in rebalancing Canada’s housing market.

“Our goal is a stable, accessible housing market — one where average prices reflect reality, not runaway speculation,” Robertson said.

As affordability remains a top concern for millions of Canadians, industry watchers say the government’s shift toward structural supply solutions marks one of the most significant policy turns in recent years.

— Lendworth Canada, “Your Equity Deserves More™”

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