Why does housing cost what it does?
It seems like more supply should be able to eliminate any housing affordability problem. But a long with excess supply another thing that needs to be realized is that near city centres SFHs should eventually not exist.
How many new homes would it take to tank the housing market?
The other thing is with housing in Calgary is the median family income supports the purchase of the median SFH so that seems pretty balanced. If you wanted to reduce the market further you would have to increase qualifying standards for loans and down payments to make the affordability of housing drop. This might be offset by increased investment into rentals though.
Part of the problem is that so much money has been printed and instead of causing inflation it’s being hidden in stocks and houses and other assets. The only solution is to decrease money supply and there is a lot of resistance to that.
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