Thursday, November 18, 2021

Real Estate Bubble making Canada's Wealth Gap Worse

Canada's real estate bubble is going to burst. It is just a matter of when.

With the pandemic and other factors fueling housing prices, plus rampant speculation, it is really just a matter of time before housing prices become unaffordable and the market collapses under economic pressures.

And if you look around at all the economic pressures, you know it is going to happen.

The bubble has to burst. Toronto and Vancouver rank up there with San Francisco and Los Angeles for the most expensive real estate markets, and while Canada's market has been stable... Our median incomes haven't been going up enough to justify the rapid increases in home prices.

Eventually the wealth gap between rich and middle class will make it impossible for even middle class people to afford a house unless they take out huge mortgages they cannot afford. And when the next big recession hits...

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