If you read that there’s a shortage of housing in Canada, you’re mistaken; there’s not a shortage of housing in Canada; there’s a shortage of landlords. The reason there is a shortage of landlords is that most parts of cities and towns in Canada voted for LEFT WING leadership. Left-wing leaders like to make life hard for ALL business people; left-wingers also believe in high taxes.
Landlords are indeed business people, and because most municipal/local rules and regulations, favor tenants, most people in Canada refuse to be landlords without pricing in the true cost of being landlords.
You have to remember being a landlord is not simply collecting rent; you have to fix toilets, landscape, maintenance, pay taxes, etc. A lot of landlords uit being landlords because the made no money from their tenants.
To make matters worse, Canadians also vote for Left Wing Federal politicians. Federal politicians have direct access to BORROW money from Canada’s Central Bank, and the more money the Federal government borrows, the higher the interest rate goes, also the higher the deficit goes, and the more money the federal government puts into circulation; this leads to the value of houses going up, which for real estate means more equity for homeowners. So, if you own property in Canada, it is more profitable to buy and hold rather than buy and rent.
Lastly, Canada’s worst Crown Corporation(State Owned Enterprise) is CMHC, which has helped to create a huge market for Condominiums that was never in demand prior.
The concept behind CMHC’s entry into the modern mortgage-backed securities and mortgage insurance business was to help more Canadians become homeowners. That mission clearly failed, and Canada has a whole lot of vacational and empty condos all over the country that are being bought and sold like Stocks.
These condo owners aren’t interested in being landlords, and some condos have BANNED their condo owners from being landlords, so one has to ask what purpose CMHC serves in the modern era, as it only serves as a PRICE CONTROL mechanism, to prevent the housing market in Canada from deflating.
This concludes why Canada has a Landlord shortage.
