IMO one of the really critical takeaways of this historical survey given the current climate is this: The claim that immigration has caused the crises is completely B.S. With the dynamics in place to drive the crises, increasing population can exacerbate the problem on the margins, but population growth didn’t cause the problem and deportations won’t fix it.
We need systemic fixes, like public development of purpose built affordable housing and regulation to prevent finalization of the human right to housing.
I know how to solve it! Let’s build a $100 billion tunnel and a luxurt megaspa on public land! /s
Don’t forget removing bike lanes!
Bike lanes are driving up the cost of housing by making the city a nice place to live!! Rip em out!
It took a long time to get here. It’ll take time to get out.
It doesn’t have to. But the CPC and LPC are setting low targets for production, so we shouldn’t expect many units to be built. On top of that, neither are suggesting tax changes to discourage the financialization of housing.
So it’ll take a long time to get out, because there’s little political will to change the current system.
neither are suggesting tax changes to discourage the financialization of housing.
This is the big one. You can build as many houses as you want and it won’t help regular people if investors keep buying them all up.
Yes it will, assuming they get rented out then of course it will.
The problem is zoning and developer fees. Our government at the municipal level is regressive with zoning and development taxes. While the Federal government uses mass immigration to artificially boost GDP to hide a technical recession, which adds a huge amount of new demand.
Yes it will, assuming they get rented out then of course it will.
In enough volume, yes. But that volume is massive. 3.5 million units by 2030. We built something like 240k houses last year. We’re nowhere near the supply/demand balance that you’re describing.
If an insufficient number of homes are added, prices will remain the same or continue to inflate.
The problem is zoning and developer fees.
That’s tens of thousands of dollars on units that cost over 700k. So 5-10% of the sticker price on new builds. Removing those charges does little to lower the price of existing housing.
There are a host of other factors: expensive materials, not enough labourers/trades, money laundering, etc. But a huge issue is the amount of money in housing.
The feds and provinces could address that through tax changes, but politicians don’t have the guts. 🤷♂️
Ah yes, true prices would rise as Canadians compete with investors. We should disallow mortgages for those with second homes and ban foreign investment in perpetuity.
“At the upper end, government charges can represent more than 20% of the cost of building a home in major Canadian cities.”
https://publications.gc.ca/collections/collection_2022/schl-cmhc/nh18-35/NH18-35-1-2022-eng.pdf
The final cost to the buyer is more relevant than the cost to the builder. It looks like that’s closer to 5-7%.
There are lots of small things that might take a few percent off the cost of housing, if developers and landlords are feeling generous. But we’ll need systemic reform if we’re going to get prices back to affordable.
