So when’s the housing bubble bursting?




 












 










louwii
9h ago • Edited 5h ago





Key things from the article:

- estimates suggest the bulk of the empty inventory is in the $800,000 to $1.2 million range in the neighbourhood of 790 to 870 square feet
- Developers have been focused on building units for investors because they made up about half of all buyers in the years 2021 to 2023. Last year, this fell to 26 per cent and in the first quarter of 2025, investors made up just seven per cent of buyers, according to Rennie Intelligence
- People looking for a place to actually live, meanwhile, are turning to older condos in the resale market with bigger floor plans or new projects that are low-rises.


The hilarious part: the industry suggests a few things to make it "easier" to buy condos... for investors.
- expanding GST rebates to all new homebuyers, rather than just first-time buyers
- allowing residential rental properties to be held in RRSPs and adjusting federal foreign buyer rules, as well as the provincial foreign buyer tax, to permit investment in newly built homes

Since a few people in the comments are mentioning lowering prices, here's what the developers have to say:

Another way to move stuck inventory is, of course, to reduce prices. McMullin said developers are already offering widespread price cuts and incentives.
All in all, it looks like the developers put themselves in this situation. They chose to target investors instead of first time home buyers. The market changed, and now they're unhappy because their target is gone. Oh well. It's not like they made a crap ton of money in the last 10 years...

EDIT: This brings an interesting question on the table though. We still need a lot of new housing. If developers don't want to build anymore due to a lack of investors and and smaller potential gains, they will stop building. How do we solve that?
 
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