Quote:
Originally Posted by Fire
Sounds like interest rates need to be bumped up some more. Plus when Canada adds over a million immigrants last year they have to live somewhere. I don't think new housing is keeping us with demand. I am not against immigration but it is putting a floor on how low house prices can go.
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Its a bizarre problem.
More immigration = more housing demand.
More housing demand = more skilled trades positions being open.
Skilled trade positions not being filled = more immigration demand.
At the same time corporate Canada loves more immigration because it allows them to keep wages low.
At the same time the government & rich developers love the lack of housing supply because it keeps demand high, supply low = prices are always high.
At the same time there is a massive shortage of skilled trades regardless of what happens with immigration, and with the switch towards EVs and the likely fact that Canada will be in a strong position to provide manufacturing capacity, the shortage will be bigger than ever.
At the same time AI & other technological advancements are likely going to lead to terrible job losses, but we are slow to wrap our head around this and realize that we need to be pushing kids into developing sectors that pay well, not into ####ty college degrees where they end up working retail or fast food because nobody is hiring.
But, with high immigration that just helps keep wages low, there is slow uptake into these positions by 2nd+ generation Canadians. And also we are raising a generation of kids who simply don't want to get into STEM / trades / manufacturing, regardless of how well it pays.
All of this is going to equal a pretty wild real estate market for the foreseeable future.
Not sure interest rates are going to change any of that, other than make the banks richer.