It’s a question of how likely a proposed solution is to reduce housing costs.
Just some back of the envelope math, a fee years ago the value of Canadian residential real estate was some 7.5 trillion, just call it 7. Even a 10% drop in value means a roughly 700 billion loss. For the 40ish percent of Canadian households which own their home, the plan evaporates a large chunk of their retirement wealth.
You’ve hit the nail on the head: it’s hard to make housing more affordable without reducing the amount of money people charge for housing. If the goal is to build a few more houses, but keep the cost of housing the same, then the LPC plan will succeed - it’s provides money to builders without a guarantee of price reductions.
But low income and young Canadians will continue to be priced out of housing with that approach. Unless CMHC the new government body builds houses, and rent/sells them to the next generation of Canadians below market rates. That’s possible, but that Singaporean approach it isn’t described in the LPC plan. And it will probably require more money than it promises for affordable housing.
We’ve been in a housing crisis for something like five years now, and it’s helped fuel a push to the right. If the LPC plan is as you describe it, and the intent is to keep inflated housing prices for the next decade (perhaps until real wages catch up), then we’re going to see a continued right-ward push.
You’ve hit the nail on the head: it’s hard to make housing more affordable without reducing the amount of money people charge for housing.
Or, like any other commodity where there’s a market imbalance, you address supply issues and prices come down.
I’m sorry but “everyone gets a free house” isn’t particularly realistic or interesting. It’s like when people say the trick to ending war is “no more countries are allowed to go to war!” Cool that’s nice but…
Or, like any other commodity where there’s a market imbalance, you address supply issues and prices come down.
Our largest recent spike in home starts was during the pandemic, when housing prices skyrocketed, so there’s clearly more to the price than just supply. A comprehensive plan to improve housing affordability would take that into account, and address the demand and financing parts of the equation.
There’s nothing in the LPC plan to guarantee costs fall, so it seems we’ll be left to the whims of the market. Again.
It’s a question of how likely a proposed solution is to reduce housing costs.
You’ve hit the nail on the head: it’s hard to make housing more affordable without reducing the amount of money people charge for housing. If the goal is to build a few more houses, but keep the cost of housing the same, then the LPC plan will succeed - it’s provides money to builders without a guarantee of price reductions.
But low income and young Canadians will continue to be priced out of housing with that approach. Unless
CMHCthe new government body builds houses, and rent/sells them to the next generation of Canadians below market rates. That’s possible, but that Singaporean approach it isn’t described in the LPC plan. And it will probably require more money than it promises for affordable housing.We’ve been in a housing crisis for something like five years now, and it’s helped fuel a push to the right. If the LPC plan is as you describe it, and the intent is to keep inflated housing prices for the next decade (perhaps until real wages catch up), then we’re going to see a continued right-ward push.
Or, like any other commodity where there’s a market imbalance, you address supply issues and prices come down.
I’m sorry but “everyone gets a free house” isn’t particularly realistic or interesting. It’s like when people say the trick to ending war is “no more countries are allowed to go to war!” Cool that’s nice but…
Now you’re putting words in my mouth.
Our largest recent spike in home starts was during the pandemic, when housing prices skyrocketed, so there’s clearly more to the price than just supply. A comprehensive plan to improve housing affordability would take that into account, and address the demand and financing parts of the equation.
There’s nothing in the LPC plan to guarantee costs fall, so it seems we’ll be left to the whims of the market. Again.