Sky-high condo prices aren’t a supply problem

From the Globe and Mail (Gary Mason), quoting in part:

‘No, there is lots of “supply” in Vancouver and Toronto. That isn’t the issue. It’s who’s getting access to that supply that is a big part of the problem. And it’s also the type of “supply” being built.

Many of the condos being constructed are designed to be purchased by wealthy investors, the Lamborghini crowd. They aren’t being built for a couple of young professionals starting a family. Not unless you consider $1-million for 1,000-square-feet on the 10th floor of a tower in suburban Burnaby, B.C., reasonable. No, somehow, some way, governments need to encourage developers, through incentives or whatever it takes, to start building housing that the middle class can afford.

Right now, developers are getting everything their way. They are putting pressure on local politicians to speed up the approval process so they can erect more towers, more quickly, but they are doing nothing – nothing – about the costs of the units they are constructing. In fact, you could argue they are engaging in activity that is helping ensure the costs keep going up.

It’s ridiculous.’

https://www.theglobeandmail.com/opinion/sky-high-condo-prices-arent-a-supply-problem/article35091277/

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