patrick.net

Harvey Enchin: Are the benefits of home ownership over-stated?

New supply can't come on to the market fast enough to keep prices down, partly because builders might wait to see if price increases can be sustained before committing to construction, and cities may be slow (or hesitant) to free up land for development.

Weakened credit standards and money from investors outside the city anticipating continued price appreciation can keep prices rising faster than increases in rents and incomes for a long time, Avent said.

He suggested two measures governments can take to prevent this vicious cycle: to “maintain a liberal planning regime” and to tighten credit as prices rise, measures he acknowledges would be unpopular among rich and influential people with a financial interest in maintaining high housing prices.

http://www.vancouversun.com/opinion/columnists/Harvey+Enchin+benefits+home+ownership+over+stated/9847432/story.html

Sounds like those two measures are the current state we're in...

#housing