JayTreeman

They prop up prices in a lot of ways, the first one that comes to mind is extending the length of a mortgage. That makes housing both more affordable, but also makes the banks a lot more money.

We have all of our eggs in that basket. Also, I went to an affordable housing conference in 2018. At that point, Canada was in crisis. Prices are much higher now

Thanks… There’s a lot of reasons why this analogy isn’t going to last now because supply and demand is grade school economics. Check out all of the ways government is subsidizing construction of units. And how does it work when a company is selling units, but they have to have an increase in revenue quarter over quarter? They can’t suddenly sell for less. Otherwise stock price will fall and executive’s will have to take parachutes. Government doesn’t want all these companies to fail, so they prop up the prices. This thing is far too complicated for supply and demand economics. Anyone selling that has invested in real estate

Supply and demand doesn’t begin to explain Canadian housing issues. If I have 10 apples that i sell $1/piece, I’m not going to start selling them at $.75/piecewhen I get 30 apples.