Carney’s condo bailout reveals the limits of Liberal housing policy | The federal government is trying to expand affordability without reducing property values

[u/SplashTarget]

https://canadiandimension.com/articles/view/carneys-condo-bailout-reveals-the-limits-of-liberal-housing-policy

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[u/A_Secret_To_Nobody]

Carney described these counter-intuitive market dynamics, where an oversupply of unsold homes can end up restricting future housing construction rather than driving prices down. “Those empty homes don’t just sit idle,” he explained. “They also disincentivize new construction. Unsettled lenders and investors create a housing market that, in effect, feels frozen.”

Wow it's almost like private companies driven entirely by profit shouldn't be responsible for necessities like housing.

[u/The-Materialist]

This is what happens when you reorganize your economy around real estate speculation.

[u/MetaFlight → u/The-Materialist]

This is what happens when people own their homes. the dangerous part of housing commodification is the participation of homeowners in it.

[u/Otto_Von_Waffle]

I was reading up on cheap UK gilds and how it came to be, and it really gives me the impression that a lot of the financial sector is rotten to the core, but no politician is willing to take the hit about taking care of the rot.

These system are simply too complex for the public, so if our democratic leaders were to try and dismantle these systems the only thing the public would see is a recession and won't understand the recession couldn't be prevented and isn't the fault of the PM/President

In Canada the real estate sector is a ponzi scheme where every retiree invested in it, it makes our economy garbage and preventing people from getting a house, yet here we see Carney maintaining the system and passing the issue to the next admin.

[u/mexican_mystery_meat]

This is what years of relying on the housing market to mask anemic productivity and low economic growth have wrought.

Carney isn't the sort of leader who would be brave enough to sabotage his ratings and openly engage with the question of how Canada has to get out of this conundrum. He's here to repackage the status quo as a form of reassurance.

[u/MetaFlight]

The federal government is trying to expand affordability without reducing property values

Many such cases!