I've been looking at the Toronto real estate prices a bit, and I'm convinced the real issue is primarily interest rates, not immigration, or construction. Don't

I've been looking at the Toronto real estate prices a bit, and I'm convinced the real issue is primarily interest rates, not immigration, or construction. Don't take my word for it, ofc: Immigration: - Rent has not increased like real estate: https://www.zumper.com/rent-research/toronto-on https://www.zumper.com/rent-research/toronto-on - In 2020, immigration dropped by half to 184,500. Real Estate prices went up. https://www.canada.ca/en/immigration-refugees-citizenship/news/2021/12/canada-welcomes-the-most-immigrants-in-a-single-year-in-its-history.html https://www.canada.ca/en/immigration-refugees-citizenship/ne... Construction constraints: - This is probably hyper-local, but in Toronto for example, they are building over 1 new housing start per year for every 100 residents (https://ycharts.com/indicators/toronto_on_housing_starts https://ycharts.com/indicators/toronto_on_housing_starts). That's not bad, it's not the CA Bay Area's situation. - Anyone in Toronto can tell you there is a lot of home building going on with construction everywhere. Canadian mortgages don't have the typical 30-year fixed rate that a lot of US mortgages do. Instead, typical mortgages reset every 5 years, and in fact many are month-to-month variable rates. In fact, the percentage of new mortgages originating as these variable rates in Canada has been rising and recently broke 50%. The majority of homes are now financed using a month-to-month variable rate which is set to some profit above Bank of Canada prime rate. Until March, it was possible to get a mortgage with a 1% or even lower interest rate in Canada. Take a look at the average: https://www.ratehub.ca/5-year-variable-mortgage-rate-history https://www.ratehub.ca/5-year-variable-mortgage-rate-history In Mar 2020, Canada dropped the short term bond rate from 1.75% to 0.25% overnight. In 2008, they did something similar from 4% down to nearly zero, and had only just started raising them back towards 1.75% right before Covid. Only in March 2022 did we see the first rate hike and it was very mild. Canada Real estate is basically a bubble driven by aggressively low interest rates. The problem now is that inflation is causing the interest rates to rise, and that could pop this bubble, so we might be seeing some of these laws designed to shift the blame. More sources: - https://en.m.wikipedia.org/wiki/Canadian_property_bubble https://en.m.wikipedia.org/wiki/Canadian_property_bubble - https://www.bloomberg.com/news/articles/2021-06-15/world-s-most-bubbly-housing-markets-flash-2008-style-warnings https://www.bloomberg.com/news/articles/2021-06-15/world-s-m... - https://betterdwelling.com/the-toronto-real-estate-bubble-now-has-1-in-59-workers-selling-homes/ https://betterdwelling.com/the-toronto-real-estate-bubble-no... - https://seekingalpha.com/article/4477223-canadian-housing-market-party-is-over https://seekingalpha.com/article/4477223-canadian-housing-ma... - https://financialpost.com/executive/executive-summary/posthaste-canadas-housing-boom-has-been-unprecedented-the-fallout-will-be-too-say-these-economists https://financialpost.com/executive/executive-summary/postha...