• sugar_in_your_tea@sh.itjust.works
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    1 year ago

    Raising rates seems to do two things to housing:

    • encourage targeting luxury housing - if you’re rich, prices aren’t as important
    • encourage selling to larger landlords - more apartments, fewer condos/townhouses

    Builders are still going to build, they just need to target people who can afford the higher prices.

    • Kecessa@sh.itjust.works
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      1 year ago

      Looking at the construction industry in Quebec, builders aren’t building anything… There’s zero clients right now…

    • phx@lemmy.ca
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      1 year ago

      The problem is that people increasingly CAN’T afford the prices. Where are all they people that can afford near million dollar homes for 8% interest (or cash) come from?

      At best, they’ll be people who are landlords who already have significant wealth and will rent at sky-high prices…