America envy

A constant theme of the maple MAGAs, and a growing cohort of the young commies we seem to be breeding is that Americans have it so much better.

All the evidence you need, they say, is contained in housing stats. Real estate is chaeper in America = America is better than Canada.

Is it so? Let’s look.

Last month sales of homes across the States dipped by almost 3% from May, making it the worst spell for realtors in about a year. The supply of homes listed was up 16% year/year – so a similar pattern to what we’re seeing in most Canadian markets.

There’s now a 4.7 month supply of houses, which is the longest in almost a decade. Mortgages cost a lot – averaging just under 7% (close to twice the Canadian rate). Yes, there can be interest deductibility for many people, depending on location.

So, slow sales. Swelling inventory. Expensive loans. The US is on track to have the worst year for total house sales in exactly two decades. Yet this is an economy with rock-bottom 4% unemployment, a growing GDP plus a protectionist government pulling out every stop to screw over the world for the benefit of Americans.

How about price?

The cost of a home in America is at another record level. In June it was up 2% to $435,300 nationally. In Canadian funds, that’s $598,000. In cntrast, the current average across this country is $691,000, and is about 2% lower than this time last year. At the moment we have an identical amount of supply – 4.7 months.

Household income? The median after-tax family income in the States is just under $65,000 US. In Canada it is almost $74,500 Cdn. So the average house costs the average US family 6.7 times annual income. In Canada it’s just over 9 times.

Capital gains?

In Canada you get to keep 100% of the profit made selling residential real estate, without a limit of any kind. It’s one reason there’s been so much investment in this asset class. In the US a married couple can avoid tax on $500,000 in capital gains, and must pay on the rest. The average cap gain tax rate for most folks is 15%.

So US families find that prices are less, but prices are impacted by higher financing charges and the potential of taxation on gains. On the other hand, there is limited interest deductibility and mortgages have 30-year terms (not five, like here), so if you luck into a low rate, you win. If not, you refinance.

Of course, Americans don’t have universal state-paid health care coverage. The average cost of family health insurance premiums last year was $25,572 – a stiff 7% increase from 2023. US parents get a tax credit of $3,600 per child to age six and three grand to age 18. That’s a break on taxes, not a payment. Canadian parents receive tax-free cash of up to almost $8,000 for kids under six and $6,750 to age 17. There is no widespread $10-per-day child care in the States, either, as will be the case in Canada in 2026.

Taxes? Combined federal-state taxes in America are typically 37% to 50% of income, compared with a rage of 40-54% in Canada. States like New York and California top the chart – for real estate values and taxation levels. And there is massive disparity on a regional basis in family income, service levels and house prices – far more pronounced than in this country.

So, chew on that. They have Trump, ICE and Beyonce. We elected an economist.

Envious? Remember what Robin Williams had to say. “You are the kindest country in the world. You are like a really nice apartment over a meth lab.”

About the picture: “Happy to say that I ‘m still kicking,” writes Donnie, in Calgary. “My wife and I are at the  Marda Loop night market and the pups are inviting me to support local. I came away with a bottle of Barn Burner whisky and it didn’t disappoint. Thanks for all you do.”

To be in touch or sed a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2025/07/25/america-envy/