Soaring housing costs could spell 'disastrous' political consequences for Trudeau

financialpost.com:

The soaring cost of Canada’s housing has become a major political problem for Prime Minister Justin Trudeau as his chief rival zeros in on generational grievances over affordability.

Trudeau has played defence on the issue this summer, appointing a new housing minister last week and shifting some of the blame to other levels of government on Monday. But with his party already sinking in recent polls, housing has become a serious vulnerability for Trudeau.

“Failure to be seen as doing enough on housing could be politically disastrous for the Liberals,” said David Coletto, chief executive of polling firm Abacus Data.

The issue is particularly important for Canadians under 40 years old — a critically important demographic that Trudeau’s party couldn’t have won the last two elections without, Coletto said. His firm’s most recent poll put Pierre Poilievre’s Conservatives 10 points ahead of the Liberals.

The benchmark price for a Canadian home has more than doubled over the past decade, reaching $760,600 in June. Trudeau’s government, which took power in 2015, has also steadily raised its annual immigration targets, with more than one million people arriving last year, straining an already tight housing supply.

Poilievre has hammered Trudeau on the issue, focusing on the anger of younger generations. Canada’s housing affordability is among the worst in the world, he told reporters Aug. 1 outside the Parliament building in Ottawa.

Failure to be seen as doing enough on housing could be politically disastrous for the Liberals

“Rent has doubled,” he said. “Mortgage payments, doubled. Needed down payments, doubled. All after eight years of Justin Trudeau.”

To be sure, skyrocketing housing costs have many causes beyond Trudeau’s