Housing demand today is not aligning with our growing economy and low unemployment rates. The market trends we are seeing are largely policy induced. For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market.
What policymakers are failing to recognize is that demand-side measures do not eliminate demand, they sideline potential home buyers in the short term. That demand is ultimately satisfied down the line because shelter needs do not go away. Using public policy to delay local demand in the housing market just feeds disruptive cycles that have been so well-documented in our region.