Canada’s housing market is entering a critical phase—particularly the condo market, which now faces a looming collapse. For those paying attention, this isn’t surprising. It’s the inevitable and unfortunate result of years of poor policy decisions, regulatory overreach, and economic denialism.
What’s more troubling is the likely reaction: money printing and debasement of the Canadian dollar. While no one can accurately predict how the forex markets will respond, the domestic impact will be undeniable: a nightmare for working Canadians, homeowners, and anyone with savings in Canadian currency.
The Myth of a Housing Shortage
Contrary to the headlines, Canada doesn’t have a true housing shortage—even with massive, ongoing immigration. The root of the problem lies not in supply, but in local regulations and economic mismanagement. The dominant political philosophy in Canada—largely left-leaning—has embraced the most destructive type of socialism: price controls.
What Are Price Controls?
Price controls are government-imposed limits on what can be charged for goods and services. In Canada, they manifest in three dangerous forms:
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Minimum wages, which distort labor markets.
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Rent controls, which discourage private investment in housing.
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Price protectionism, where the government artificially props up certain industries or assets—like housing—regardless of economic reality.
This last one—price protectionism—has become a political weapon. Housing prices are being protected at the expense of future generations, leading to a bloated public sector, a shrinking private economy, and a growing reliance on the printing press to keep the illusion alive.
Canada’s Cradle-to-Grave Welfare Mentality
Unlike the U.S., where there’s a wider spectrum of political and economic thought—from far-left activists to moderate capitalists—Canada’s identity is increasingly shaped by a cradle-to-grave welfare mindset, especially in Quebec and Atlantic Canada. Ironically, while Alberta is often viewed as the most conservative or “white” province, it’s Quebec and Atlantic Canada that are more eurocentric in both demographics and dependency.
These regions are the most reliant on federal transfers. They’ve built an unsustainable economic model that only works in times of excess. But those times are gone.
A House of Cards Built by “Old Stock” Canadians
The irony of this housing collapse is that it will hit hardest not in the “have-not” provinces, but in major metro areas that were supposedly strongholds of prosperity. Those who built this system—what some might call “Old Stock Canadians”—are now watching their house of cards fall apart.
As the condo market tanks, don’t expect prices to fall. Instead, expect the government to level prices artificially through financial engineering and price controls, while the real economy suffers under stagflation and a permanently debased dollar.
The Mark Carney Farce
The fact that former Bank of Canada Governor Mark Carney is being floated as a likely winner of the 2025 federal election is comical—yet deeply revealing. It highlights the low financial IQ of the average Canadian voter, who still believes that technocrats and central bankers can fix the very mess they helped create.
What’s Next? Currency Pain and Foreign Reliance
If the condo market collapses and prices stagnate while inflation continues, investors will flee. Foreign capital will dry up. And while China has long subsidized the global economy through cheap exports, how long can that last? Even if China continues, the cost of goods in Canadian dollars will still rise—because a weak loonie buys less of everything.
This is the real crisis: not just collapsing home values or unaffordable housing—but the slow death of domestic investment and the rise of a zombie economy, propped up by policy, not productivity.