It may be several years yet before home prices fall back into an affordable range for the average Canadian, according to Oxford Economics.
This is only a small part of the problem. The issue is that corporations are bidding on an extremely limited number of lots. Like a hundred firms on five lots kinda insane. By bidding on each other over and over, the prices inflate, and the end result ends up having to rake in more money just to recoup the costs.
It’s just plain illegal to build multiplexes on single lot residential. That’s why you can get several square km in the middle of downtown of only single family houses with front and back yards, with 50 story sky scrapers a few blocks down.
and the end result ends up having to rake in more money just to recoup the costs.
that’s not how prices work
This is exactly how prices work. The minimum price of something is the price at which something costs to procure and produce, with anything added on top being profits. And this being typical western capitalism, they do what they can to increase profits as much as possible, and with housing being a requirement not a luxury, people pay whatever is asked.
Those houses could cost 5% of what they cost now and rent would be the same, because people will pay it.
