How can Canada unclog its housing market?

The Big Story explores Canada's deepening housing crisis, focusing not just on first-time buyers but on the overlooked group of second-time homebuyers trapped in starter condos. Host Karen Sciolan speaks with Mike Moffitt of the Missing Middle Initiative, who explains how flat prices, rising construction costs, and a glut of unsold condos have created a market stalemate. Many aspiring homeowners can't upgrade due to stagnant equity and high interest rates, while seniors are reluctant to downsize because of transaction costs, taxes, and the loss of tax advantages on primary residences. The episode highlights how the recent federal-provincial agreement to eliminate HST on new homes under $1 million could act as a catalyst, creating FOMO and boosting demand. However, Moffitt emphasizes that no single policy can solve the crisis—instead, a coordinated effort across all levels of government is needed to reform land use, streamline approvals, reduce development charges, and modernize building codes. The conversation underscores the cyclical nature of housing markets and the long-term consequences of price bubbles, warning that recovery will be uneven and that vulnerable populations will require targeted social housing support.