Rates Alone Can't Fix Housing, Bank of Canada Says

Is this a supply and zoning failure or the result of demand cranked far beyond what cities can absorb?

Published OCT 2

Rates Alone Can't Fix Housing, Bank of Canada Says

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Above: Carolyn Rogers speaks during a news conference in Ottawa, Canada, on Dec. 10, 2025. Image credit: James Park/Bloomberg/Getty Images

The Spin

Pro-government narrative

Housing affordability is a supply and planning problem, and pretending a single interest rate can fix it only sets everyone up for disappointment. One rate cannot be tuned for Vancouver and Calgary at once, and cheaper credit in a supply-starved market just bids prices higher. The honest path runs through more building, smarter zoning and faster permits, with price stability as the steady foundation under it all.

Mike P. Moffatt on X Bank of Canada

Government-critical narrative

Blaming zoning paperwork dodges the obvious: demand was cranked far beyond what homes, hospitals and jobs could absorb. Rents exploded, emergency rooms overflowed and an entire generation got priced out of the cities they grew up in, with many giving up on starting a family. Lowering immigration would ease pressure on strained housing markets that no building boom can outrun.

Vincent Neil Ho on X Toronto Sun Conservative Party of Canada