Canada is facing a housing crisis, particularly in Ontario, and news has now surfaced that indicate that it is the Ontario Liberals, who are the ones to blame for this. The Ryerson University Centre for Urban Research and Land Development has put all the blame on Ontario Liberals for the housing crisis in Toronto according to their latest report.
The report clearly shows the consistent flaw there is in government social engineering projects, and how they fail at managing the different interactions taking place in an economy. The end result was disastrous for the housing market, because the plan failed as a whole to provide affordable housing to people. That is the reason why home prices in the Greater Toronto Area have skyrocketed, and led to the creation of this housing bubble.
This further adds fuel to the argument on why the government shouldn’t be in charge of controlling land, because they inadvertently spoil things. The government has no role in deciding, which areas to develop, and should instead focus on managing public lands, and letting the housing market work on the supply and demand module.
People should be allowed to purchase the kind of house they want, or build it on the land they want without worrying about the government. The mismatch between supply and demand occurs when the politicians try to control the market and the economy. The report has also pointed out that introducing the foreign buyer tax will not help correct the market, because it will only provide temporary relief.
The most disappointing thing, according to the report was that the Ontario Liberals knew that they were doing the wrong thing, and it would lead to a housing bubble, but they ignored the signs. They had data showing them that house prices in the GTA region would increase, but chose not to do anything.