„Wir müssen mehr Angebot liefern“: Kanadas neuer Wohnungsminister glaubt nicht, dass die Preise sinken müssen
https://www.ctvnews.ca/politics/article/we-need-to-deliver-more-supply-canadas-new-housing-minister-doesnt-think-prices-need-to-come-down/
„Wir müssen mehr Angebot liefern“: Kanadas neuer Wohnungsminister glaubt nicht, dass die Preise sinken müssen
https://www.ctvnews.ca/politics/article/we-need-to-deliver-more-supply-canadas-new-housing-minister-doesnt-think-prices-need-to-come-down/
17 Kommentare
Pricing going down would be a disaster for people/ investors who bought houses in the last 4-5 years.
And considering that real estate speculation was on of our main economic growth sector…
We need *affordable* supply. I do kind of wonder what would happen if prices did drop significantly. If you bought a 800k condo in like 2022 and it drops significantly to like 500k, aren’t you just kind of stuck in that condo? You’d be underwater on the mortgage and have to pay off that amount you’re underwater on before you could even sell the condo which would be financially disastrous.
Isn’t what he said contradictory though? I mean an increase in supply of housing would then lead to lower housing prices…am I wrong?
In Canada, purchasing real estate comes with an implicit understanding that it is a government-backed, risk-free asset class that delivers substantial and consistent returns. Any political party that jeopardizes this implicit expectation would face disastrous consequences.
It’s incredibly reassuring to see that the Liberals will uphold this understanding. Canadians depend on it.
The quiet part not being said is that in theory, increasing supply decreases home prices in the long run.
However, since housing is a hot topic, especially among young Canadians aspiring to buy a home they are priced out of, hearing your leaders say prices shouldn’t come down, is not what they want to hear. To homeowners who want to maintain their real estate investments as high as possible? Of course they don’t want their home values to go down and don’t want to hear their politicians say such things.
But something I tire from politicians, and for a while the LPC, is trying to play both sides. They want to somehow keep homeowners happy and make new builds affordable for the have nots. You can’t have both, and trying to find a way to do both just delays progress.
The LPC did these kind of politics in the Trudeau era, and it just comes off as more of the same under Carney. Meanwhile, Poilievre made gains with young people by speaking on their concerns about housing affordability, which was considered far fetched previously.
It doesn’t help that the new minister has a higher lens of scrutiny due to his lacklustre record and being in charge of a crucial portfolio. I’m willing to give him a chance. But first impressions are not good and hurt the party.
I guess the politics optics still matter but I wish we could normalize the idea of not emphasizing capital-A “Affordable Housing” and instead appreciate that „affordable housing” is a byproduct of housing supply period.
Stop fighting the market, if buyers and developers are motivated, let them build what they want to build and generate a glut of affordable housing in their wake. As long as places don’t sit empty, and there’s no reason to think they would, that’s a win. Yes McMansions will get built, yes that’s offensive, yes it’s still a net win, yes a net win is the best we’ve done in decades.
There’s lots of research out of the US on how places like SF and Austin have leaned into market-rate housing as a solution to generate positive affordable housing outcomes.
Increasing supply should bring prices down. But it might take a while.
I don’t envy the government’s position. I doubt many property owners would rejoice if prices came down, and there’s no way to increase affordable housing without decreasing home prices across the board. It’s supply and demand. Lotsa demand with limited supply=high prices; lotsa supply with limited demand=lower prices.
Part of the issue is if you say house prices are going to come down who is going to spend $800K if they are being told it will be $700K in the near future? If people aren’t buying what is being built, less will be built.
Increasing supply does bring down prices but telling people that prices are about to drop could have some consequences ie smaller increase in supply and in turn less affordability than otherwise.
Too much of the Canadian economy is tied into real estate for it to come down.
We invested into a Ponzi scheme and we’re too proud to admit it.
They don’t. We need wages to go up. Housing prices rose with no corresponding rise in wages. Housing is not the only thing that went up (food, utilities, insurances, and so on). Wages have been essentially flat.
Let’s not get hung up on the exact phrase. If supply goes up and everything else stays the same, prices go down.
Any government policy that directly lowers prices (via subsidy, tax credit, etc.) will not work long term as it induces demand and prices increase to make up for it. (If everything else held constant.)
More supply = lower prices by definition. You can’t say we need massively more supply and not have that directly mean lower prices
I’m a bit split on this issue. Yes we need more housing supply, especially below-market housing or affordable housing, whatever term you choose to use. But I also understand homeowners‘ concern that their „investment“ need to be protected. I’m not talking about landlords or organizations that run rental properties, I’m talking about people like myself and my parents; most of our assets are tied to the places we live in right now. My parents are relying on their property keeping (or increasing) its value so when it comes time to downsize/retire/whatever, they will have money to support themselves. So from that lens I can see why it’s likely political suicide to tell the vast majority of your electorate that your investments will and should go down the crapper.
Gregor Robertson mentioned last night on Power and Politics the distinction between market and below-market housing, and they’re aiming to increase the supply of the latter. Conceptually, I understand what he’s talking about, I just don’t know if it translates to real-world scenarios.
Affordable and government-subsidized housing should be the top priority. Anyone who already owns a home can get fucked.
Prices were going up back when we had responsible immigration before 2015. It’s not like that anymore with the century initiative. We are going to have to build like crazy to accommodate all of the people, and the standards and resources will be stretched thinner from here on out. It’s basic supply and demand.
Fantastic pick for housing minister, no notes well done. Adam Vaughan said the same bullshit seven years ago before he fucked off. It’s never about building homes for people, it’s about how to make money off of housing.
I own my 1 house, no mortgage. I would love prices to go down! Then I could move to another house or build, and the difference wouldn’t be as huge from what I sell my current one at to what the new one is – thus dipping into less of my savings to make up the gap.
Lower prices are better even for someone who owns a house.
It’s the multi home owners who are ruining it….