Quote:
Originally Posted by CliffFletcher
So any theories why home prices have increased much more dramatically in Canada than in any other G7 country? Do we really build far fewer houses relative to the U.S., UK, Germany, etc?
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Easy lending
Foreign flight of capital / money laundering
Two of our largest, most attractive cities / immigrant hubs are geographically restricted
Restrictive zoning
"Snowball effect"?
Don't we have far higher home ownership rates than Germany? That plays into the snowball effect - more homeowners, accuring more equity have more money to "reinvest" in second / third / fourth properties, or help with down payments for their children, etc etc... Combine all that with a deeply entrenched "wealth" that all but insures no one will rock the boat too much.
It isn't any one of these factors (and many more), but on the aggregate, they all contribute...
Looking at it another way, there's been very little reason or effort put into
not dramatically increasing housing prices in Canada.