Quote:
Originally Posted by afc wimbledon
the problem for the last 10 years has mostly been low interest rates, if you take away that then most of the worlds worst real estate markets, Vancouver To, Melbourne, London etc are a third to half cheaper.
All of these cities will always be the most expensive places to live in their respective countries but its the free money that basically only existing home owners and the wealthy can access that has been the problem. A few years of 6 to 8% will cure most of it
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If Canada continues to bring in 450k+ new people per year without any plans on how to build more housing, I don't see things letting up here. The millennials are also the largest generation of people ever.
Canada also has a skilled labor shortage, so it's not exactly cheap to build a new housing unit either, assuming Canada eventually does rezone more land for housing.
We could limit immigration to just people with the skills we need to build houses. However, that's difficult to do, as Canada is now quickly developing skilled labor shortages in just about every other sector of the economy too. This is baffling as about 75% of Canadians under 35 have a post secondary qualification... Just not in any field the economy actually needs. As cities get more expensive to live in, various sectors of skilled labor are also likely going to be less willing to live there.
What we're dealing with now if the fallout of about forty years of no direction. Canada has put almost no effort into various key infrastructure issues. We have a heavily subsidized education system, that lets people study in any field without any consideration of what the economy actually needs. We also have lots of land, but somehow one of the greatest housing shortages in the world. It's almost impressive that things are this bad.