Long and uncertain building permit approval timelines make it more difficult to build in cities like Toronto.
housing in canada
If taxing foreign buyers affects demand for homes in some cities, where might that demand migrate to?
In some major metropolitan areas in Canada, housing supply is not keeping up with demand.
Reforming the minutiae of the building permit process might not seem exciting, but it can encourage homebuilding and affect prices.
Fortunately, municipalities control many of the factors that determine housing supply growth.
Cutting local red tape will increase housing stock and reduce prices in Toronto, Vancouver and beyond
Housing tends to be less scarce, and less expensive, in markets where homebuilders are less constrained by geography or regulations.
Higher home prices are strongly associated with restrictive land-use regulations.
The prime minister's "foreign ownership" plan may make for good politics but the underlying economics is questionable, to say the least.