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this post was submitted on 31 Mar 2025
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Do you know if the CMHC analysis considers decreasing the housing costs by increasing supply till the market is forced to decrease prices, or whether it's considering public intervention like building low cost housing and selling it at cost?
The article says it'd oversee "affordable housing construction" so we'll have to wait and see how they intend to make it affordable.
I'm under the impression that it's simply increasing supply to flood the market and meet demand. I don't believe that CMHC analysis included price controls. It's been a while since I read it though.
Assuming that they've only looked at that, then by introducing useful, at-cost units on the market (rental or real estate), it might be possible to depress prices through fewer units. E.g. units like the 2-3 bedroom ones in cheap, brown multistorey buildings the CMHC used to build before condos became popular. A smaller flood of such units would bid prices down directly.
Definitely, but I don't think the CMHC study distinguishes between unit types, nor do housing start stats. I believe we had 225k starts for the last couple years. We need to increase those numbers dramatically to improve affordability.