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this post was submitted on 04 Feb 2024
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Assuming price is driven by supply and demand this definitively would reduce demand (unless foreigners are not buying), another thing that should also be done is to ban corporations from purchasing homes.
My bigger question is why haven’t construction companies been able to pick up the slack. Anyone working in that field should be making a killing right now
AFAIU contribution companies are already working to capacity. Canada has a significant shortage of skilled trades, so that's a limiting factor.
Another factor (that politicians have been much more vocal about) is the planning process that construction companies have to comply with when building new developments or infill.
EDIT: and the relatively high interest rate makes it hard to get financing.
It’s my understanding as little as a year ago raw materials were also still suffering a shortage, though I’m not sure that’s the case now.
They are. I have had multiple contractors tell me they don't want to even bid on building my back-house because I live on a different side of town. They are turning down $50k jobs because they are at capacity in their neighborhood without having to fight traffic getting to mine. And we're only talking 15 miles here.
And my general construction go-to guy has almost tripled how much he charges for small jobs.
Yep I’m sure that was the theory. Was just curious if anyone had been checking on how it’s going in practice.