The housing crisis will never end without levying forceful taxes against real estate speculators and investors. A recent report outlines the necessary actions to impose taxes that can actually narrow the wealth gap and alleviate the housing emergency.
That is part of the solution, the othee part is not letting a foreign owner buy a place and leave it vacant.
Why do people always specify “foreign” owners? I don’t see how being born in Canada should enable one to hoard housing.
Because the people who are the actual problem love that Canadians are looking abroad for the source of the problem instead of a wee tad closer to home.
House Hoarding is also an issue, but at least a Canadian is going to rent it to make cash and provide housing. Foreign owners often sit on empty prooerties to move money from China (or elsewhere) and so you have a full house vacant. This creates a lot of housing supply issues thus driiving prices artificially. If we had enough units available for anybody looking, even canadian house horders woyld see rental price drop, and make it not so lucrative to rent
That’s literally what price is for. The higher the price, the fewer people actually looking. Eventually equilibrium is found where what is for sale matches those serious about buying.
If you think there are more people looking than there are units, expect prices to climb a whole lot more.
It is actually the more demand drives higher price. high price doesn’t stop people needing housing, it just means everyone pays more and affordable housing for low income gets bought up by middle income because the higher prices in their old home range. i’m in BC it has not stopped climbing, even though they are building everwhere. The 5 year old house across the street from me is empty with weeds growing up through the porch, because it got sold and the new owner did not occupy it.
An increase in demand at a given price will see the price climb, but in doing so demand will decline in kind. That is why the price rises – to allow those who demand something more to “win”, pushing other parties who were interested at the lower price out of the market. “I would like to have something” isn’t what defines demand.
Housing is more inelastic than a lot of things, but there is always a bowing out point. The average person might be able to eke out a million dollar home, but they’d never be able to buy a billion dollar home. They’d go find a tent to pitch in the forest, or something.
The data clearly shows that early 2022 was the top of the market. Maybe it will climb again, but for now that is not true.
People don’t move to a tent when they have a family, they still buy a home or rent at high rates and do less living as a result. i have been iin BC 13 years it has increased every year, and new developments are constant. it is going to keep going up until there are more units in the supply than the demand. it is simple economics 101 with a fair market system.
They do when they can’t afford a house. Like, actually can’t afford a house, not just saying they can’t afford a house on an internet forum while occupying one just fine behind the anonymous internet username.
Indeed, although BC prices peaked in 2022, so we’re already there. The higher cost of housing on the backs of higher interest rates has no doubt quashed some demand. A higher cost sees a decline in demand. Imagine that.
Its a slow in sales, not that housing demand got less. people are just forced into higher rent situations instead.