For decades, home prices were anchored to household incomes.
There was a natural limit to how high prices could rise—constrained by what ordinary families could afford.
But that anchor has been severed.
Today, housing operates on a new logic—where prices are driven by capital flows, investor demand, and financial markets, not by wages.
And yet, policymakers and housing experts continue to prescribe old solutions—treating the crisis as if it were simply a matter of "red tape" and "not building enough homes."
But the reality is different.
We’re not just facing a housing shortage.
We’re living through a fundamental paradigm shift - where hypercapitalism is driving housing unaffordability.
Understanding this shift is the first step toward building a housing system that works for the next generation—not just for those who already own.
John Pasalis is President of Realosophy Realty, a Toronto real estate brokerage which uses data analysis to advise residential real estate buyers, sellers and investors.
He is a frequent commentator on the Toronto housing market and real estate consumer and industry issues, John has contributed to the Globe and Mail, CBC, BNN Bloomberg, TVO's The Agenda, Toronto Star and other media, government and industry organizations.
John’s research is regularly shared with and cited by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC), the International Monetary Fund (IMF) and others.
John holds a B.Sc. in Economics from the University of Toronto and an MSc and Doctor of Business Administration through a joint program between the University of Reading and the University of Toronto.
