Happy Monday Morning! The Canadian population ballooned by nearly 1.3 million in 2023, Stats Canada reported this past week. The expansion was fuelled largely by the arrival of temporary residents, which include international students, asylum seekers and people in Canada on work permits. Last year, their ranks grew by slightly more than 800,000, according to the new
> Make no mistake, a swift reduction in population growth is the single most effective policy measure that can provide immediate relief to the housing market.
What does "immediate relief" mean?
Even if they will keep campaign promises of immigration reduction (lets be honest - do we really think they will?), we're still outpacing supply, so the chasm between supply and demand continues to grow and investors will continue to scoop up properties. (I think of it as the same way people will call a CEO "cold and heartless" just for aligning their work with their fiduciary duty to shareholders. Canadians can't help but invest in unproductive RE because otherwise they wouldn't be exploiting a massive supply/demand imbalance of a human NEED; it'd be crazy to not take advantage of that lucrative situation... right? And if Canada fails because of it, then oh well, at least we didn't infringe on the asset class' ability to maximize profits. Yay Canada.)
How does our current housing environment NOT progress towards a feudal system unless legislation is created to prevent it?
Too much bloat is right. All of these declarations are ridiculous. Great report Steve.
> Make no mistake, a swift reduction in population growth is the single most effective policy measure that can provide immediate relief to the housing market.
What does "immediate relief" mean?
Even if they will keep campaign promises of immigration reduction (lets be honest - do we really think they will?), we're still outpacing supply, so the chasm between supply and demand continues to grow and investors will continue to scoop up properties. (I think of it as the same way people will call a CEO "cold and heartless" just for aligning their work with their fiduciary duty to shareholders. Canadians can't help but invest in unproductive RE because otherwise they wouldn't be exploiting a massive supply/demand imbalance of a human NEED; it'd be crazy to not take advantage of that lucrative situation... right? And if Canada fails because of it, then oh well, at least we didn't infringe on the asset class' ability to maximize profits. Yay Canada.)
How does our current housing environment NOT progress towards a feudal system unless legislation is created to prevent it?
Excellent as always steve