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The rising house prices in Canada have deterred many people. Market data show that Canadian housing is always in short supply, and experts always use this as an excuse to explain the rise in house prices.
According to CBC, Paul Kershaw, a professor at the University of British Columbia and founder of the advocacy group Generation Squeeze, said Canada would not be able to solve the housing crisis without answering a basic but thorny question. “in this country, we have not yet decided whether the rise in house prices is good or bad.” He said.
He says Canada’s property market is stuck in a cycle that pushes house prices to unsustainably high levels. This usually makes homeowners happy and frightens those who are trying to enter the housing market.
The Liberal Party has not yet announced its election platform, but the Liberal Government has policies to deal with the housing problem in its 2021 budget.
The budget includes an investment of 2.5 billion yuan for the construction of 35000 comfortable housing units, of which 1.5 billion yuan is for the government’s “Rapid Housing Program”, which aims to build new comfortable housing units faster than usual.
The Liberal Party also proposes to impose a new tax on “underutilized” housing.
The most compelling view comes from Mr Trudeau’s strongest opponent in the general election, Conservative leader Erin O’Toole (pictured below).
In his election platform, O’Tour directly proposed that since the average house price in Canada is already higher than that in many western countries, in order to solve the comfortable housing problem, if he can win the election, he will prohibit all foreign investors from buying houses in Canada for at least two years.
In the last federal budget, the Canadian government proposed a 1% tax on vacant houses owned by foreigners to reduce the rise in house prices caused by large purchases of Canadian houses by foreigners.
If you add in the purchase ban, it is undoubtedly a matter of great concern whether the Canadian property market, especially in the Chinese-populated areas of Vancouver and Toronto, will cause a collapse in house prices.
It has been pointed out that a large number of homeowners hoarding houses will suffer a devastating blow.
The Conservative Party said in its election platform that it planned to build 1 million houses within three years, convert at least 15 per cent of federal property into housing, and develop an aboriginal housing strategy.
The Tories also want to encourage the provision of 7-10-year mortgages and adjust stress tests and insurance requirements to make it easier for people to qualify for loans.