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by stubybubs
1068 days ago
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> Double current prices and suddenly most of those jobs wouldn’t look attractive which instantly reduces demand for housing until you’re back to current prices. Sure, but we've already done this several times in our major cities, and it hasn't killed demand. > Interest rates do little to discourage home construction https://financialpost.com/real-estate/cmhc-housing-starts-dr... “With interest rates remaining high, it continues to be challenging for developers and homebuilders to get projects started,” he said in a press release. That article is from April and housing starts dropped further. In the 1970's Canada had a lot of purpose built rental stock subsidized by the government. You could find a place to live anywhere. I think there has to be some of that, plus some top-down work on zoning (which is happening in some provinces, overriding municipalities) and then we need to just build and build. |
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Not over an afternoon. Housing prices haven’t grown in a vacuum, massive increases in productivity and population over time feed back into peoples ability to pay for things. Beachfront vacation homes have also become vastly more expensive for related reasons, but that obviously gets less press than peoples primary residences.
Most things are priced based on what it costs to create them, other stuff is based on how much people can afford. Urban housing has entered the second category and it’s going to take a lot more than minor interest rate changes to reverse this trend.