Rising Prices and Foreign Investment
Real estate prices have skyrocketed in the past decade. Cities such as Toronto are averaging double digit a year growth in housing prices (Carrick, 2013). Detached houses in Toronto are now well over half a million dollars on average (Carrick, 2013). There are several reasons for this large and hefty increase in prices. There is a shortage of detached homes and that is pushing up prices. Additionally, there has been a large increase in buying of Canadian properties by foreign investors, and that has been pus...
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...ums. An increase in the quantity of affordable rental housing would help lower rental rates and benefit the poor class. I suggest that the above incentives and grants be financed by an increase in property tax for owners of detached homes. Investors (both Canadian and foreign) who own several Canadian properties should be subject to higher still property taxes. To prevent the landlords from simply passing the higher cost of property taxes onto the tenants, rent controls will need to be implemented, which cap rental rates. Landlords should be given financial incentives to provide more rental housing, even though the rental rates will be capped with a rate ceiling depending on the size of the space. This has been successfully in cities such as New York. I feel that these implementations will go a long way towards making the Canadian housing situation fairer for all.
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