The truth about Canada’s inflated rental market – March 3, 2019,

For me it’s pretty obvious when a lobbyist group is purposely writing misinformation, I don’t mind avoiding the truth because I can’t prove that a person is or isn’t ignorant on a topic, but misinformation about Canada’s rental markets annoy me because of the future implications. There’s a Huffington Post article titled:

Canadian Rental Rates Rise At Fastest Pace In 30 Years – Huffington Post

Instead of the article stating the truth which is that current housing all over Canada isn’t being built on consumer demand and is instead be built on speculative demand, the article attempts to put the blame on newly minted regulations which have only been in effect for about a year, whereas the problem, CMHC using taxpayer dollars to ensure mortgage-backed has led to an increase in speculation in the Canadian housing market. Trudeau’s mass immigration project hasn’t kicked in yet and the main reason Canada has the RENTAL INFLATION problem it has is that newly built housing most of which are highrise condos are left empty.

Prior to CMHC insuring mortgages, Toronto had an abundance of housing, the problem then wasn’t so much rent, but having credit or renting in your desired neighborhood. Since the CMHC insured mortgages, the rental situation has worsed, when it should have gotten better? CMHC was made to help more Canadians become homeowners right? Well, clearly the experiment isn’t working anymore, so wouldn’t it be a good idea to phase out CMHC? Of course not, the real estate Lobby would much rather keep the Ponzi scheme going, which is why the article I’m referring to above states the following:

Many experts say the jump in rents over the past two years has to do with the slowdown in the owner-occupied housing market

Many would-be homebuyers have been priced out of the housing market due to the new mortgage stress test or rising interest rates, forcing people to stay in rental housing longer.

No, would be homebuyers have been priced out of the market because of flippers who aren’t buying houses and condos to live in, they’re instead buying houses to flip or to rent out at prices that don’t reflect the actual market. Canada, right now, minus the CMHC should actually be in one of it’s most prosperous times in history, however, lobbyist groups are fighting to keep the BoC interest rates low, to deflate the loonie and keep this debt trap economy afloat.

This housing problem would never have happened in a free market, real estate investors are being insured with low-interest rates, our real estate market is subsidized, government interference and these price controls are having a real effect on the real economy and lastly the problem really isn’t just residential, the real problem that’s starting to emerge is commercial space, be warned Canada our economy is going to have some serious economic challenges ahead if the free market isn’t allowed to correct this debt problem.

Interesting times ahead.