(Bloomberg) -- The Bank of Canada stepped up the pace of interest-rate cuts and signaled that the post-pandemic era of high inflation is over.Most Read from BloombergClimate Change Is Killing Buildings in Slow MotionOman Sees an Urban Future Distinct From Dubai and Abu DhabiHow Kyiv Became a Leader in Digital Services Amid Wartime StrainTransportation Policy Gets Left Behind in Presidential RaceDhaka's Revolutionary Makeover Pits Visions of Peace Against VengeancePolicymakers led by Governor Tif
This is what was meant by the inflation is transitory line, the timelines are just much longer and the effect is more painful than people expect.
I’m hoping this injects some serious stimulus into the housing construction industry to boost housing supply, but I would have liked to see the government offering direct low interest loans or even construction bonds with tight default rules or co-ownership stipulations.
Stimulus in way of rising housing prices where affordability becomes harder and harder to reach for the masses, yes it will. But we’ve seen this for the last 15 years. It ain’t the interest rates that’ll boost supply to solve our housing problem. It’s the supply constraints - ie labour, red tape including building restrictions, nimby, air b&b etc that are holding things back.
I think the building restrictions parent poster was referring to are density restrictions.
As an example, there are narrow strips of Toronto along major roads that allow skyscrapers, a lot of it a block away from single-family-home zoning. So all the demand for multi-unit housing bursts up in narrow corridors.
If, instead, quad-plexes became universally allowed, and lot height limits were increased to 3 (or 4? idk) stories, then single-family homes could be torn down or renovated to make room for up to 4 families to live comfortably on the same land.
Rosedale shouldn’t exist. Single-family homes a short walk from downtown Toronto is a big part of why people are commuting from Barrie.
West Van is just as bad. Even small towns in desirable areas are seeing density restrictions causing a missing middle in housing.
I’m surprised but not really.
This is what was meant by the inflation is transitory line, the timelines are just much longer and the effect is more painful than people expect.
I’m hoping this injects some serious stimulus into the housing construction industry to boost housing supply, but I would have liked to see the government offering direct low interest loans or even construction bonds with tight default rules or co-ownership stipulations.
Stimulus in way of rising housing prices where affordability becomes harder and harder to reach for the masses, yes it will. But we’ve seen this for the last 15 years. It ain’t the interest rates that’ll boost supply to solve our housing problem. It’s the supply constraints - ie labour, red tape including building restrictions, nimby, air b&b etc that are holding things back.
Yeah, they’re not going to be affordable, but more supply is more supply in a shortage.
I’m on board with easing constraints so long as homes are built soundly and owners aren’t left holding an expensive crumbling house.
I think the building restrictions parent poster was referring to are density restrictions.
As an example, there are narrow strips of Toronto along major roads that allow skyscrapers, a lot of it a block away from single-family-home zoning. So all the demand for multi-unit housing bursts up in narrow corridors.
If, instead, quad-plexes became universally allowed, and lot height limits were increased to 3 (or 4? idk) stories, then single-family homes could be torn down or renovated to make room for up to 4 families to live comfortably on the same land.
Rosedale shouldn’t exist. Single-family homes a short walk from downtown Toronto is a big part of why people are commuting from Barrie.
West Van is just as bad. Even small towns in desirable areas are seeing density restrictions causing a missing middle in housing.