The CMHC and the BoC declared war with Toronto and Ontario, enough with Nonsense, Get the FEDERAL GOVERNMENT out of the Canadian housing market, Adam Zivo is misguided – November 1, 2021,
I live n Toronto, so this is a problem I’m well aware of, and the main problem with the Canadian housing market is NOT the municipal government, I’m not a fan of John Tory but nor am I a fan of Doug Ford, but both of them have a problem that they can’t control and it’s Bank of Canada(BoC) and The Canada Mortgage and Housing Corporation(CMHC). The CMHC started this problem once it began insuring mortgages, the first place to experience a housing boom was Vancouver and why shouldn’t it? It connects Canada with Asia, there is a lot of trade between Canada and China and the CMHC is basically a guarantee to the markets that there will be a floor to how far the Canadian economy will crash.
At one point interest rates in Canada fluctuated, they were normalized, this all changed when the U.S housing market crashed, the Canadian housing market DIDN’T because structurally our financial products were far more regulated. But these regulations were soon undermined once the market realized that interest rates were stuck at zero, housing markets all over the world are now SAFE bets because if central banks raise interest rates, politicians are forced into austerity measures and God forbid government is forced to cut people and corporations off from their welfare and entitlements?
This environment fuels Condo development, because why build rental housing and deal with silly municipal and Provincial laws like rental controls or tenant rights. Why not outsource that stupid problem to the condo owner, who then lobbies the government to allow them to kick renters out of their condo anytime they feel like it. Now, this might not seem like a big deal, but if you’re an owner of a condo, chances are you want to keep those condo prices propped up, so whether you like it or not, you inadvertently become a lobbyist for this craziness to continue.
Now, both the Municipal and Provincial governments are stuck between a rock and a hard place. So are the Federal politicians, I remember listening to Erin O’Toole who spoke openly about protecting the value of people’s homes? That’s the CONSERVATIVE option, to this disaster, imagine the liberal option to this debacle. For people ignorant that the Federal government is the problem, they go looking for problems in the wrong place.
Both Doug Ford and John Tory can’t fix this problem because for very government action, there’s a market reaction and as I’ve pointed out, with all of these condos in the Toronto market there are thousands of people in Ontario who want to see the values of their condos APPRECIATE. he article by Adam Zivo completely misses the point, and the funny thing about the Canadian housing market is that it’s often hard to understand if the writer is Liberal or Conservative, because they both appear clueless as to how these two FEDERAL CROWN CORPORATIONS the Bank of Canada The Canada Mortgage and Housing Corporation have destroyed the housing “MARKET” and are accelerating poverty all over Canada.
Nowhere in Canada is the housing market reflective of the working class, a lot of working-class Canadians which even include at times Doctors, don’t qualify for the house they want? This problem stems from the BoC and CMHC, and there’s nothing Doug Ford or John Tory can do about it.
Interesting times ahead