How do you see Ontario’s Fair Housing Plan playing out?

If you have not heard lately, the Ontario government has issued a “Fair Housing Plan” for the southern Ontario golden horseshoe area.  With the pricing of homes seemingly out of reach for most people, I was in agreement that something needed to be done.  What I am not in agreement with, is the plan of  government intervention in a free market.  There are countless examples of government intervention with very bad outcomes.  The current plan, will NOT end well either.  The real estate market will slow, for now.  Once the dust settles, and once the average buyer still realizes they need a place to stay, the real estate market, will continue to grow in price and will become even harder to enter moving forward.  The government didn’t solve the problem, which is a supply side issue.  14 out of the 16 points of the “Fair Housing Plan” are trying to solve the problem by slowing demand.  Toronto and Southern Ontario need more supply, not decreased demand.  Without intervention on the supply side, the problem has not been fixed.  Hopefully, we don’t become Sweden, whose government intervened 6 years ago.  After a brief slowdown, they now have a 20 year waiting list for rental properties, and a housing market that has become so expensive, that only the richest of the rich can only afford.  We won’t be far off from Sweden if the Supply side issue it not resolved, which is to increase the number of homes and condos that people can live in.  In Toronto, we have historic lows of vacancy rates, and historic highs on pricing and sales.  Like most politicians, the “Fair Housing Plan” has a lot of great sound bites and will more than likely stir up votes as it sounds good on paper for existing voters.  But realistically, without increasing the number of homes, the government plan is the equivalent of giving a tylenol for the pain to someone suffering from a brain tumour.  Without removing the tumour, tylenol isn’t going to solve the problem.

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