The bursting of the housing bubble in the US happened in the very recent past. It ruined the lives of hundreds of thousands of people in myriad ways. The home owners, real estate agents, workers in the housing sector, banks etc. faced the negative impact of the situation. Is there a risk of that same situation happening in Canada too?
Right now, home ownership in Canada is at the highest level and is much higher than even the US. This is due to the low interest rates that are prevailing in the country, the increase in the number of treasure hunters seeking their riches in real estate etc. At the same time, the rate of rent in many parts of the country is decreasing at a rapid rate.
How is the rent becoming cheaper than mortgage payment for purchasing homes? The classic economics theory of supply and demand is at play here. As more people are purchasing homes, the number of people renting out is decreasing. Over a period of time, this can adversely affect the value of housing market.
Another possible mitigating factor can be the increase in interest rates that is going to come in to place in the near future. That would force many people to abandon their homeownership dreams.