this post was submitted on 01 Apr 2024
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I feel like I'm missing something. Don't we have a housing shortage, not merely an "owner-occupied" home shortage or a "rental" home shortage? Somebody please tell me what I'm missing.
If too many homes were owned by investors and rented out, why aren't rented homes more affordable? If you say, "greedy landlords," are you suggesting that the roughly 1.4 million landlords in Canada (source) are all effectively colluding? I find that highly implausible.
If we had sufficient housing supply for the demand in general, wouldn't that result in lower prices to both rent and own, depending on what's right for each individual?
It's both.
If you just look at supply and demand graphs.
Where S is supply, D is demand, N is number of people, I is number of investors, and P is price you'd have: