Canada Has A Housing Shortage. So Why's It Punishing Homebuyers?

Something happened in Toronto real estate over the past year that really shouldn’t happen in a free market. As home prices shot through the roof, the number of homes being built in the city dropped dramatically.New housing starts fell by 46 per cent in the past year. And even though nearby Hamilton and Oshawa are seeing some of the country’s fastest house price growth, building permits issued there dropped by 29 per cent and 14 per cent, respectively. That’s even though the average resale price in the region soared 22.7 per cent at the same time.Vancouver seems to be experiencing a similar problem.”When you have a 40 per cent increase in prices in a year, the skyline should be absolutely saturated with cranes,” Thomas Davidoff of the University of British Columbia’s Centre for Urban Economics and Real Estate told Bloomberg. “That’s not what you see in Vancouver.”Condo buildings on Toronto’s waterfront. …