Why is Housing in Canada Expensive, and How Does Insurance Factor?

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    Housing in Canada is expensive due to a combination of factors, including high demand, limited supply, and increasing construction costs. A strong influx of immigrants and urban growth have driven up demand in major cities, while limited land availability and slow zoning processes constrain new housing supply. Additionally, high interest rates make mortgages pricier, adding to the affordability challenge for buyers. Insurance, while essential for property protection, also contributes to housing costs by increasing ownership expenses. Home insurance premiums in Canada have risen due to more frequent and severe climate events like floods, fires, and storms, which cause greater risks and higher claims costs for insurers. These added expenses trickle down to homeowners, who often face higher premiums and maintenance costs. Ultimately, the combination of market pressures, financing costs, and rising insurance premiums all contribute to making Canadian housing among the most expensive in the world.