Raising rates seems to do two things to housing:
- encourage targeting luxury housing - if you’re rich, prices aren’t as important
- encourage selling to larger landlords - more apartments, fewer condos/townhouses
Builders are still going to build, they just need to target people who can afford the higher prices.
4 points
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Looking at the construction industry in Quebec, builders aren’t building anything… There’s zero clients right now…
2 points
2 points
The problem is that people increasingly CAN’T afford the prices. Where are all they people that can afford near million dollar homes for 8% interest (or cash) come from?
At best, they’ll be people who are landlords who already have significant wealth and will rent at sky-high prices…
