People don't have a problem paying for a place to live for the next 30 - 40 years.
Same as people don't have a problem with paying for a car that costs the same or more as their yearly wage. Which, is, perhaps a more egregious expense considering how fast it rapidly devalues, and its short lifespan. Given that we haven't seen tens of thousands of foreclosures, and a quadrupling of those receiving financial assistance, however, one must assume that even at these prices people are managing to live within their means, for the most part.
Even though everything costs more in Canada than the USA, the income to debt ratio is still much more favorable in Canada~
Maybe money does grow on trees in Canada
?