Yesterday, BC Finance Minister Mike de Jong added his voice to the chorus of BC Liberals who are afraid that stopping the influx of foreign capital or taxing speculators could have the undesirable effect of making homes more affordable.
“You have to be careful about having the state intervene to try to regulate pricing, or depress pricing. Those who are expressing a concern, if you really assess what they are seeking, it is a reduction in the value of homes in Vancouver and that will have consequences for a lot of families”
It’s interesting that the Liberals don’t seem too concerned about the “consequences for a lot of families” caused by the incredible decrease in affordability over the last 10-15 years.
Is he really worried about families? Or is there something else the Provincial Finance Minister — who’s had a hard time balancing the books lately — might be more concerned about?
Property Transfer Tax revenue has tripled over the last decade. Affordable housing could create a big hole in the budget that Mr de Jong would have a hard time filling. But I’m sure he’s really concerned about families…
Again, housing would become less affordable. When the BC economy was smaller in the 70’s and 80’s the largest employers were fishing forestry mining tourism.
With a replacement employer this move would put tens of thousand or more out of work. Incomes drop. House prices drop but affordability stays the same.
The example of the US correction (where housing is very affordable now) strongly suggests you are mistaken.