According to Finder's panel of economists, the most effective action the Bank of Canada can take to improve housing affordability greatly depends on interest rates.

The rising cost of living is causing more than 1.3 million Canadians to fall behind on housing payments.

Economists forecast a 15 per cent to 20 per cent drop in housing prices by the end of the year, with most believing new housing supply won’t bring prices down more than higher rate increases.

According to a new housing report from Finder, approximately 45 per cent of Canadians are planning to buy or rent a new house or apartment in 2021.