Is there something off with Vancouver's new prime minister's response to Vancouver's housing affordability crisis? Looks like there is, South China Morning Post reports.
Vancouverites have gone used to their leaders' lack of interest in addressing what causes the present skyrocketing house prices, and Justin Trudeau's similar attitude towards the issue comes as no surprise. However, his justification brings a new kind of logic contortion.
Because Trudeau expressed tackling unaffordability - just as soon as he was sold that it won't do anything for the rising house prices.
Before the election, his Liberal Party promised to "review escalating home prices in high-priced markets, like Toronto and Vancouver, and consider all policy tools that could keep home ownership within reach". However, Trudeau pointed to the lack of "concrete data" on foreign investment as reason that halts the imposition of curbs on these flows.
The lacking data on processes that drive Vancouver's real estate isn't a unique concern, considering that Canada has not made steps to keep track of foreign investments that flow into the market.
However, this is when things get weird, says the report.
"You know you have to be cautious about decisions like that that are based on a single factor because at the same time that would potentially devalue the equity that a lot of people have in their homes right now," Trudeau said, adding: "We have to be very, very cautious about restricting foreign investment in our country at a time where we know we need foreign investment in businesses, in resource development."
It is common refrain to cite lack of data as reason to not switch off the foreign money tap if it would not make that big of an impact to Vancouver's market. However, using lack of data as the same reason for not switching off the tap as foreign money might turn out to play too big of a role, as well as that it might "potentially devalue equity"?
It's all sounding like lack of data is not really the primary reason, but the lack of willingness in doing something to turn off the tap, regardless of what can be seen from the data.
