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Old 11-30-2023, 01:35 PM   #10353
opendoor
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Quote:
Originally Posted by Monahammer View Post
That's a rational way of looking at housing economics, but there are other levers the government could pull to actually combat it. CHMC at one point did actually build housing, for example. They could do that again.
Maybe, but how much latent capacity is there really in the construction industry right now? Canada is already building at about the fastest rate in the industrialized world, with nearly 7 housing starts per 1,000 people. The US by comparison is only at about 4 units per 1,000 people.

And it's not like high construction levels prevented prices increases in the past. The first bubble on that chart I posted came after a decade where the housing stock increased by 35% (vs. a population increase of only 14%). Conversely, what many people now view as a golden age of affordability (90s and early '00s) coincided with a huge drop in housing construction.
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