Dear Editor:
Supply and demand form the most basic concepts of economics. With housing for example, when the demand for houses exceeds the supply, prices go up. Restrict the supply, then you get higher prices as demand exceeds supply. When there is more supply than what the demands are, then prices fall.
Up to recently, housing prices increased but were within the range of affordability for many. There was always a healthy flow of land approved for development. Prices were going up and up but a house was attainable for example, by getting a higher paying job or perhaps having a few jobs. It may have been a stretch, but it was not impossible. Although owning is a different part of it all, the costs of ownership – mortgage payments, taxes, utilities, insurances, also have to be factored in.
The key point here is Canada has an abundance of land. Unfortunate and more so, disturbing – this housing crisis was entirely preventable. Ensure an adequate and continuous supply of land to support Canada’s growth demands.
So until we get back to managing the economy like we used to, restrictive development policies along with municipal approval paralysis will continue to strangle Canadians’ hopes and rights for a reasonable opportunity to own a home.
Larry Vettor,
Guelph