The data comes from here: https://data.oecd.org/price/housing-prices.htm
It shows that the nominal US housing prices are higher than in Canada, but price to income is higher in Canada vs the US. Canada's nominal prices are actually a couple of positions lower than the OECD average.
So, do we have a relative house price problem, or a relative income problem compared to the OECD countries? The house prices might just be settling into where they naturally should be.
Does it account for mortgage and tax eligibility differences?
For illustration only. An American and Canadian that both have the same incomes, buy a house worth the same.
The American can have a term and amortization of 15 years whereas the Canadian 25 and 5 year terms.
Does it factor in the American can write the interest payments off? And with respect to incomes and disposable income. Are there variables there, that are or aren’t accounted for.
Not sure if it doesn’t or not. Don’t have the time. But a fast skim didn’t suggest they did.
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