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There is relatively little urban sprawl in Canada because financial incentives to buy homes are limited. Both the United States and Canada are highly urbanized with about three-quarters of the population living in cities and suburbs. In the United States, tax law encourages home ownership. The interest on home mortgages is tax deductible, making the cost of owning a house less than if it were not. In Canada, this interest is not tax deductible. Therefore, fewer people buy homes, resulting in less urban sprawl or the spreading out of residences and businesses. This is not to say that urban sprawl is entirely absent from Canada; it is merely less pronounced.

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Q: Why is there relatively little urban sprawl in Canada compared to the US?
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What describes why there is relatively little urban sprawl in Canada compared to the US?

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There is relatively little urban sprawl in Canada because financial incentives to buy homes are limited. Both the United States and Canada are highly urbanized with about three-quarters of the population living in cities and suburbs. In the United States, tax law encourages home ownership. The interest on home mortgages is tax deductible, making the cost of owning a house less than if it were not. In Canada, this interest is not tax deductible. Therefore, fewer people buy homes, resulting in less urban sprawl or the spreading out of residences and businesses. This is not to say that urban sprawl is entirely absent from Canada; it is merely less pronounced.


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