The numbers don’t lie: The housing crisis is not caused by a supply shortage | CCPA
www.policyalternatives.ca
Financialization, not demographics or supply, caused the cost of housing to explode in Canada.

the housing crisis has been created by banking practices that have directed excessive amounts of credit into the property market, and especially residential mortgages. As a result, buyers can bid prices up to ever-higher levels, resulting in a market where people must pay more for the same type of housing. Hence financialization can be defined as an inflationary tendency in the housing market that is induced jointly by banks’ desire to expand mortgage lending and buyers’ confidence that the value of their properties will rise.

…

However, the image of a bubble bursting and prices returning to a more rational “equilibrium” level does not seem to apply to the housing market. Because housing is a necessity, people are willing to pay high prices for it. Bidding wars can therefore persist even when relative supply grows, so long as credit markets enable them.

  • grue@lemmy.world
    1·
    1 day ago

    Nobody gives a shit about housing in bumfuck nowhere exurbs. It simply does not count because pretending people can be warehoused there when they can’t does not solve the problem.

    Quit citing irrelevant bullshit and talk only about housing within commuting distance of downtown Vancouver or Toronto (or in general, urban centers where people actually want to be), because that’s what actually matters.

    • BlameThePeacock@lemmy.caEnglish
      1·
      1 day ago

      You can look up the data even for cities specifically, it’s not significantly different. You aren’t doing that because you don’t want to be proven wrong.

      Continue tilting at windmills my friend. I’m going to go after the actual monsters.