Canadian Housing Prices Surprisingly Much More Than the United States

Canadians typically pay more for retail items than people living in the United States, but a new study suggests that they are paying lots more when it comes to housing.

According to a new report from BMO Capital Markets, Canadian citizens are currently shelling out more that 63% more than Americans for housing. What’s happening is that while the US and Canada have been able to keep housing costs relatively the same for the past 25 years, the two countries have continued to grow further apart since the downfall of the American economy in 2008.

And while the median US house price has dropped to about $233,000, the average price for a home in Canada has grown to roughly $378,000. However, experts say that they do not expect this mega-gap to last forever, as the U.S. housing market has already started to recover, with rapid increases anticipated in the near future.

Yet, some economists say that Canada is next in line to experience housing market troubles, as the country is predicted to lose 180,000 construction jobs due to diminishing home building. Some analysts say that it could actually get worse than expected, with more than 250,000 job casualties as the result of the sluggish housing market.