Canada – Canada Housing Housing Crisis

If the house prices start at $700,000, it does not matter how many are built, they will not be affordable.   There is no incentive for anyone to build “affordable” houses because everyone, except buyers, benefit from high prices.  Builders, municipalities and banks benefit.  They all make money, and everything is about money.  Remember that.

If house prices drop, then what happens to all of the people who own houses right now?  Those owners now have mortgages that are underwater.  The value of the house is now less than what is owed to the bank.  That would create a financial crisis.

Nope, high house prices are not going away. They are here to stay. Too many people have interests in keeping those prices high.

Of course, “affordable” housing is a nice sounding thing.  Its what people want to hear from their politicians,  Its just that its a fairy tale.  Another election promise that can’t be delivered.

Remember when rent or mortgage payments were supposed to not exceed 30% of your income?   What happened to that?   Now its up 60% or more.

Oh, and then there is the Carbon Tax. House construction has a large carbon footprint.  That tax adds a significant cost to construction of everything.  Funny that Trudeau does not mention that.  He is trying to prove that he can suck and blow at the dame time.  Tax carbon and build affordable housing.