Where homeownership is concerned, Americans have fallen behind their northern neighbors. In 2011 the rate of homeownership in Canada, 69%, overtook that of the U.S., 66%, for the first time in more than four decades. Evidence suggests Canada’s rate has held steady, but the U.S. rate fell to 64% in 2015. An average Canadian now has about 74% of his home’s value in equity, compared with 50% for an average American. And the number of mortgages in arrears is nearly eight times lower in Canada than in the U.S.

How did this happen?...