Quote:
Originally Posted by whatnext
You say it like it’s a bad thing.
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I mean it could turn into one. The current drop in prices and rents doesn't change the fact that the market is still super inflated, and we're still in a housing shortage. Just because we're in an economic slowdown and seeing less immigration doesn't change the fact that we still need more housing.
Developers slowing down only serves to keep prices high, so to me all housing is good housing because it increases supply. We might not have a market for luxury housing right now, but if down the line a few years ago we do and there's no upcoming units available, those buyers will end up pushing up the prices of the rest of the market.
I'm aware that it's not economical for them to build right now, but that's part of the problem. This is probably a comment for another thread, but this is why I think the government needs to be more involved in housing. Developers have no incentive to overbuild and drop prices. The government doesn't need to make money on housing, if we set it up properly, they could develop housing to sell or rent at cost, and actually provide the supply to drive prices down.