07.06.2011 - Canada: Housing bubble linked to restrictive development rules
There’s an ominous warning for Vancouver and Toronto in a U.S. report examining the property crash in that country – development restrictions played a large role in fuelling a housing bubble in large metro centres, the National Centre for Policy Alternatives suggests. Both Toronto and Vancouver are hemmed in by development restraints – Vancouver has geographic restrictions and Toronto has greenbelt preservation regulations. The report says that as mortgage credit became easier to obtain, people were forced to bid up house prices because there wasn’t enough new inventory to meet demand.............................................Full Article: Source
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