IS THERE REALLY A HOUSING SHORTAGE? ACCORDING TO BMO SURVEY THE ANSWER IS NO!
Monday Oct 17th, 2022
A recent BMO study found that there were enough houses for everyone, even when the housing crisis was at its height. The issue was that investors were purchasing extra properties with the hopes that the prices would rise.
And while it may be tempting to blame the issue on foreign investors, BMO’s research found that many Canadians purchased second and third properties, usually to rent them out or with the aim of flipping them for profit. The result of all this is a sustained rise in prices in a short period of time—or a housing crisis (or bubble).
While Canadian banks did facilitate the crisis, Bank of Canada polices such as low interest rates further precipitated the rush to purchase properties in 2020-2021.