Interest Rates, Inflation, & Why Real Estate Prices Are Back To 2017 Levels

In this news episode we discuss how inflation-adjusted home prices have fallen back to 2017 levels, despite appearing stable nominally. Housing starts hit record numbers in 2025 but momentum is fading, with the Bank of Canada holding rates at 2.25%ahead of its January 28th decision. Meanwhile, inflation rose to 2.4% in December, with renters experiencing 4.9% annual rent growth while homeowners saw just 1.3% inflation. Real estate has lost real value: While home prices dropped only 4% year-over-year, inflation-adjusted prices are back to 2017 levels, with weak sales driven more by buyer hesitation than affordability. Housing construction momentum is fading: Despite 2025 being the fifth-best year for housing starts, the six-month average has been declining since September, with economic uncertainty pushing builders toward smaller projects. Renters face much higher inflation than homeowners: Renters experienced 4.9% annual rent growth in December—the fourth-largest jump since 1988—while homeowners saw only 1.3% inflation. Try it NordVPN risk-free now with a 30-day money-back guarantee! Exchange-Traded Funds (ETFs) | BMO Global Asset Management VANCOUVER MULTIPLEX EVENT TICKETS LISTEN AD FREE Realist.caSee omnystudio.com/listener for privacy information.