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Old 02-28-2014, 07:22 AM   #62
mustache ride
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Quote:
Originally Posted by hulkrogan View Post
Except it would directly make houses more affordable.

Houses sell for what people can pay. The dollar amount per month people will pay hasn't changed dramatically. They amount they can borrow has gone way up with lower interest rates, which have fuelled much higher housing prices.

If you take away the buying power of a bunch of people, you reduce the price of a good.

I hope they do it, housing is stupid in Canada.
Does it really work like that though. People still need somewhere to live and if they don't own then they have to rent. So if you put pressure on one side of the market the other side will react.
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