COVID-19 has disrupted the housing market in Canada. While housing prices generally fall in a recession, most communities in Canada have seen a surge in housing price growth. Overall, average home prices in Canada jumped 22.8% in January to a record $621,525. The increase has been driven by higher prices for single-detached homes rather than prices for condos. “Even Windsor, the capital of Ontario’s oft-embattled auto sector, saw house prices shoot up by 21 per cent in 2020 to an average of $406,000” (Hopper, 2021, para. 7). The increase in housing prices is not only happening in major cities like Toronto, Ottawa, Vancouver, and Victoria. Smaller communities on the outskirts of major cities and tourist towns have experienced double-digit growth in housing prices. Explain the factors that are causing housing prices to surge in most cities despite the country being in a recession. Also, why haven’t condo prices also increased?

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