Good morning Steve. Twenty years of interest rates being below the intrinsic rate has meant a significant misallocation of resources into the housing sector.
The government’s plan to build modular housing is nonsense. It will not address the misallocation problem.
Mr. Carney’s management of the money supply both here and in England was a disaster. And now he is initiating an investment into manufactured housing?!
The increase in average house prices from about 420 K to 720K over several years was in lockstep with B of C Quantitative Easing. Essentially zero interest rate policies created by the B of C has resulted in the housing crisis of today. Large correction...likely.
As a woman and small family developer in Ontario, I can confirm: the government building anything is a disaster. Their “affordable” modular housing runs $500–$600/sf, while mine is half that—yet I’m buried under ridiculous development charges, double-digit interest, and endless fees. And then municipal officials ask if I plan to keep rentals affordable? That’s not policy, that’s comedy.
Good morning Steve. Twenty years of interest rates being below the intrinsic rate has meant a significant misallocation of resources into the housing sector.
The government’s plan to build modular housing is nonsense. It will not address the misallocation problem.
Mr. Carney’s management of the money supply both here and in England was a disaster. And now he is initiating an investment into manufactured housing?!
The increase in average house prices from about 420 K to 720K over several years was in lockstep with B of C Quantitative Easing. Essentially zero interest rate policies created by the B of C has resulted in the housing crisis of today. Large correction...likely.
The average citizen has no understanding of economics. Nor do the politicians. But for sure our standard of living is dropping accordingly.
As a woman and small family developer in Ontario, I can confirm: the government building anything is a disaster. Their “affordable” modular housing runs $500–$600/sf, while mine is half that—yet I’m buried under ridiculous development charges, double-digit interest, and endless fees. And then municipal officials ask if I plan to keep rentals affordable? That’s not policy, that’s comedy.
Hats off to you, Mara. The motivation behind government workers is never in the right direction. ✔️
Very scary numbers on sales vs units coming to market. Won't take much to topple these houses of cards.