Quote:
Originally Posted by Cappy
That's not how home sales work, you know that. Bigger buyer pool equals more bids.
Ok, so a corp buys it under the old system. Now what? let's profit here. It's a tear down, maybe we put two houses on it (doubling supply, maybe lowering prices? supply demand type stuff?)
Ok, i want to put two houses on here. That will be another $50,000 - $100,000 in permitting and development board fights. #### guys, its too expensive to build at this point, lets not.
Some random rich dude buys it. Great location, teardown house. 600k is a steal for the location. Let me put my 7000 sqft house on here for a few million. Great.
Someone is always going to profit from housing, man. The goal here isn't to make corporations earn less money - unless that is what you are arguing, then lets have a chat about more government housing. The goal is to increase housing supply. One of these things does it.
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I think there is some confusion here. The goal is not to increase housing supply, the goal is to drive down housing costs. Increasing the housing supply is the vehicle to get to the destination of reasonable housing costs.
So yes, government built housing needs to become part of the solution, especially if blanket rezoning stays. As we have learned from insurance and electrical companies, if you deregulate a private industry you do not get cheaper results, you get more expensive results. This happens because the corporations goals do not align with your goals.
- Our goal is to bring down the cost of homes for current and future generations to be able to have a home.
- Their goal is to drive up the cost of homes to make more profits.
These two things do not align and if you allow the corporations to have the steering wheel then your solution is going to fail to accomplish your goal.
To drive down housing costs, increasing the housing supply through building more houses is a good step. Other steps I think should be taken:
- Eliminate foreign ownership of Canadian land - There is no need for a billionaire in China to park their money in Canada and take houses away from Canadians.
- Eliminate corporate ownership of Canadian housing - Aside from a few exceptions, corporate housing is pretty bad. BC had to eliminate short term rentals because too much of their housing was being purchased by corporations and converted into short term rentals. However, allowing highly regulated non-profits to run affordable rental housing is a good idea.