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Canadian housing prices are not irrational. Assuming that no new housing gets built in canada, but canada keeps welcoming immigrants, no new supply but increasi
by amadeuspagel 3y ago
Canadian housing prices are not irrational. Assuming that no new housing gets built in canada, but canada keeps welcoming immigrants, no new supply but increasing demand, the prices will rise even further.
- stevenhuang 3y agoThe supply may be so limited that it may even be the case the demand from the limited amount of people able to afford it at these levels already exceeds it. Despite how hard that is to believe, market equilibrium may not have been reached and prices may still rise. In a properly functioning market we should see rising supply to meet demand. Unfortunately regulation (zoning) prevents that. So until regulation improves to allow for more supply, everything else is a bandage. That, or make it so somehow people stop wanting to live in large metros by eg creating economic opportunities in other cities.
- personomas 3y agoThis is the real problem. We stopped building cities. Yet population continues to grow.