Housing Bubble 2: Return of the Ugly

I don’t know about the US but Canada’s population has been skyrocketing at about 12-15% increase per decade. Yet we’re building houses at an unbelievably glacial rate. This is totally unsustainable.

Here’s the real problem: the household wealth of most Canadians is tied up in the real estate values of their homes. Governments are afraid to unleash a building spree because that bubble will burst and destroy the wealth of the middle class. Instead, the current government is deeply committed to growing the population and the economy through immigration. But this will only put more and more upward pressure on the housing market. The middle class gets richer, housing gets less and less affordable, and immigration resentment grows.