<i>Prices in Vancouver and Toronto are absolutely insane when one considers incomes in the region.</i><p>Vancouver has hints of insanity, but Toronto&#x27;s pricing is entirely rational for the current financial reality -- more and more people, and more and more money, bidding up a fixed amount of housing. It has significant ongoing migration from around the world, so if you&#x27;re a new grad who wants to live downtown, well your dollars are competing with dollars from around the globe. That&#x27;s how those things are supposed to go.<p>The fly in the ointment is, of course, low interest rates, and minor movements would be catastrophic. Which is exactly why I think low interest rates are essentially the fundamental reality in the US and Canada -- they have been structurally stratified, and any increase would cause economic devastation that would cause the rates to drop again.