Or they could, you know, raise wages to a rate that attracts staff and perhaps prioritize bringing in immigrants that fill more pressing needs we are super short in like carpentry, plumbing, trades in general.
We have a current extreme housing crisis in almost every province and halifax nova scotia is one of the worst hit since all new canadians end up here. Cost of housing doubled in 3 years, as did cost of rent. Turns out, Bringing in 12000 more new Canadians a year to this little city when you only build 3000 units of living space a year isn't ideal. The new target is like to build 7500 a year in new units, but its been deemed impossible as we don't have the capability. Rent for a 2 bedroom apartment went from $1250 to $2400 a month very quickly. Vacancy is now at nearly 0% and we have tent cities popping up everywhere. 3 bedroom, no basement Houses that sold for $170000 in 2018 now sell for $410000 on my street and started doing so n 2020. It's absolute insanity and endless growth is impossible and we now have a huge bubble on the horizon.
Folks who have to renew a 2018 $170000-200000 this year felt the sting. But only to the tune of $300-$400 a month. Which still stings.
Folks who bought at 2% interest rates on a 5 year fixed on inflated $400000-$600000 houses are now seeing the looming 2025 renewal for their mortgage coming up at 6%. They need to figure out a way to make $1000-$1400 more per month just to make payments by 2025. It's not going to be pretty.
I had this conversation in the lounge 2 years ago with
@irish_thug as I was talking myself into renewing in July 2021 at a 10 year at 3% rather than a 5 year at 2% because I was convinced I saw this coming. As it turns out, I'm on 3% till the early 2030's now and a bunch of folks told me I was crazy and that rates were not going to go up because Trudeau and Tiff Macklem said they wouldn't.
My gut on housing is usually right. Had I not followed it, I would be looking at $400 more a month starting in 2026. There is no way rates are going back to that record low anytime in the next 20 years
And I'm one of the lucky ones.