Quote:
Originally Posted by Firebot
^You are correct...if talking specifically of housing price.
Housing prices was clearly a huge problem way before the recent immigration spike. Immigration wasn't on radar yet in 2022, it was runaway inflation as a result of historically low borrowing rates that caused a buying frenzy. As you showed the average has dropped overall in the past 2 years due to housing prices in Toronto and Vancouver now that interest rates have normalized. Now of course, if we include interest rates, the cost of borrowing in 2024 is significantly higher than the peak in Feb 2022.
The same cannot be said for rent. Extreme immigration levels and a spike in interest rates is largely why Canada has seen an insane jump YOY
https://www.moneysense.ca/spend/real...g-rent-prices/
Canada also has the lowest vacancy rate seen since 1988, which can only be attributed to supply / demand as a result of immigration.
https://www.cmhc-schl.gc.ca/media-ne...utpaces-supply
I would equate the housing crisis as encompassing rentals as well (as shown here), as such Azure's statement is at least partially accurate. |
And I did point out that I was not considering rentals which I have no doubt is affected by immigration, but Azure's post was pretty pointed at cost of purchasing and how people have been buying and selling houses for years and the "real problem" was immigration.
I think Harry Lime just made a good point about simplifying. The cost of home purchases is caused more by interest rates and excess cash than immigration. Rental pricing probably has a large correlation to immigration (as I stated I didn't go into that), but also has the component of increased housing purchasing costs being passed along to renters. Its all part of a very complex interconnected system.
So yeah the points "we wouldn't be having all these housing problems if the Liberals wouldn't have blown the system apart with their immigration policies" and "the real problem, immigration" are not true and oversimplifies the housing market to one untrue soundbite.