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Originally Posted by blankall
It's fairly easy to manipulate graphs to make trends look one way or another. There's no denying that there was a dramatic uptick in housing prices around 2020 though:
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It's the combination of these increases with stagnating wages and vastly increasing interest payments that are creating the crunch, in what was already a difficult market to begin with.
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I don't think inflation adjusted prices over the last 50 years is manipulation. And ultimately, the chart you posted shows the same thing. Nominal prices have risen about 25-30% since 2017, but the CPI has increased 25% in that same time period and wages have increased even more.
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The Liberals themselves are acknowledging that it's an issue, making building 3.9 million more homes by 2031 a key part of their campaign:
The Liberals are also proposing increasing capital gains taxes on amounts over $250k earned in a year.
All of this is great. However, it also highlights that the existing government didn't do enough about these issues prior to now.
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Sure, because people are blaming them for high housing costs. And housing is way too expensive so they should be doing something about it. But it has been way too expensive for at least the last decade. The only difference now is interest rates are higher, but they will likely come down a bit and housing prices will likely stagnate, both of which will improve affordability.