this post was submitted on 11 Aug 2023
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Why it might be several years before homes are more affordable in Canada (www.bnnbloomberg.ca)
submitted 1 year ago by [email protected] to c/[email protected]
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It may be several years yet before home prices fall back into an affordable range for the average Canadian, according to Oxford Economics.

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[–] [email protected] -1 points 1 year ago (1 children)

and the end result ends up having to rake in more money just to recoup the costs.

that's not how prices work

[–] [email protected] 2 points 1 year ago (1 children)

This is exactly how prices work. The minimum price of something is the price at which something costs to procure and produce, with anything added on top being profits. And this being typical western capitalism, they do what they can to increase profits as much as possible, and with housing being a requirement not a luxury, people pay whatever is asked.

[–] [email protected] -1 points 1 year ago (1 children)

Those houses could cost 5% of what they cost now and rent would be the same, because people will pay it.

[–] [email protected] 2 points 1 year ago

I'm not talking about individual houses. I'm talking about condos that easily cost more than the land they're built on so they can maximize profits.