Experts say the Canadian housing crisis poses a great risk to the incumbent government in the next election if it doesn't take drastic action soon.
“This has become probably the most important both economic and political problem facing the country right now,” said Tyler Meredith, a former head of economic strategy and planning for Finance Minister Chrystia Freeland.
“And especially given the significant emphasis the government has put on immigration and the relationship between immigration and the housing market, there is a need to do more.”
Supply and demand are key factors in pricing. If no one wanted to buy houses, prices would go down
I agree that both increasing supply and decreasing demand would move prices down. At the same time, while the different measures that we can take to increase supply would require months if not years to have an effect, there are several things we can do to reduce demand overnight. Here are some examples:
Increase taxes on empty homes and homes owned by non-resident landlords. For example, by increasing property taxes while at the same time providing a refundable tax credit for your primary home when you file your income taxes
Reduce yearly immigration targets and reduce the number of other visas, such as student visas
Do not automatically grant citizenship to babies born in Canada unless their mother is legally residing here
So…reduce the demand for homes purchased for income purposes and increase the supply of houses available on the general market.
But yes, those are all excellent ideas and I hope someone implements them soon. But since about a third of MPs have at least 2 homes, it could be a tough sell.
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I agree that both increasing supply and decreasing demand would move prices down. At the same time, while the different measures that we can take to increase supply would require months if not years to have an effect, there are several things we can do to reduce demand overnight. Here are some examples:
So…reduce the demand for homes purchased for income purposes and increase the supply of houses available on the general market.
But yes, those are all excellent ideas and I hope someone implements them soon. But since about a third of MPs have at least 2 homes, it could be a tough sell.