The Toronto Star just reported that Toronto added nearly 269,000 people from July 2023 to July 2024, making it the fastest-growing city in both Canada and the U.S. for the second year in a row.
It’s a good moment to look back.
For years, Canadian politicians and many of the country’s top housing experts insisted that young people were being priced out of homeownership because of government “red tape” and restrictive zoning.
Prime Minister Trudeau blamed a housing shortage, saying: “It’s not fair to young people, who feel that cities are turning their backs on them.”
Pierre Poilievre pointed the finger at municipal “gatekeepers,” arguing they were stopping us from building enough homes.
In truth, politicians were largely repeating what housing economists were telling them.
What these experts failed to challenge was the unsustainable pace of Canada’s population growth - which surged to 1.3 million people per year, far above our historical average of 350,000.
Instead of questioning whether this pace was manageable, economists offered a simple solution: Canada just needed to triple housing completions in the short term. They called for an “industrial strategy” to make it happen.
Looking back, three things are clear:
First, the experts got it wrong. They misdiagnosed the problem and proposed an impossible solution. No country - especially one already building at near-capacity - can triple home construction overnight. To this day, it’s hard to understand how this passed for serious policy advice.
Second, this moment is a reminder of the power of public pressure. In April 2024, for the first time, Canada’s federal government acknowledged the link between record population growth and housing stress. The federal budget stated: “That is why current housing pressures mean that Canada is taking a careful look to make sure immigration does not outpace our ability to supply housing for all.”
That shift didn’t happen because the experts changed their minds. It happened because Canadians raised their voices.
Finally, it’s a reminder of a lesson my father taught me early in life: never blindly trust the experts. They’re human - just as prone to bias, blind spots, and groupthink as anyone else.
If there’s one lesson in all of this, it’s that we can’t afford to confuse credentials with wisdom - or ideology with evidence. Because when public policy is shaped by convenient theories instead of uncomfortable truths, it’s everyday Canadians who pay the price.
John Pasalis is President of Realosophy Realty. A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Have questions about your own moves in the Toronto area as a buyer, seller, investor or renter? Book a no-obligation consult with John and his team at a Realosophy here: https://www.movesmartly.com/meetjohn
April 25, 2025
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