Quote:
Originally Posted by bizaro86
The only way to fix it is to massively increase supply to drive speculation out of the markets. But that is mostly a municipal (zoning) and provincial (green zone/agricultural zone) policies. Higher interest rates will help somewhat but to fix the problem there needs to be a supply response.
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While I agree that supply increases would help the situation (in particular, high-density housing), I'm not convinced that it alone would solve the problem. China has tried to solve its problems by massively increasing housing supply via developers taking on huge debts... doing so has not driven speculators out of the market, but instead has created problems such as ghost cities and a massive housing bubble. I'm not saying the same thing would necessarily happen here, but I also don't think getting speculators out of the market is as simple as rapidly increasing supply.
Then of course, there's another big problem... shortages of building materials...