One of the greatest problem faced is that the Canadian Economy just can't grow.
I believe the greatest damage is caused by the fact the buying a home is primarily a speculative investment sucking money out the hands of young people forcing them into small homes causing them to have small delayed families. The wisest man in history King Solomon understood that hard working people create growth. And people naturally work hardest to take care of their young families.
This mandatory speculative investment is a DEPT SINK HOLE sucking money out of the economy away from productive investments that create jobs through providing products and services.
It is this LACK of productive investments which create jobs, which make it so hard for people to earn a living wage.
All of these problems prevent economic growth making no growth high debt economy the new norm.
http://www.macleans.ca/economy/economicanalysis/why-canadas-economy-cant-pick-up-speed/
I believe among the most effective ways to stimulate growth is address the problem of mandatory speculation
A first step is:
1) 30% to 40% of all new development should be Co-Op so that home buyers are not forced to be property speculators. This will free up home owner's money to be spent in the economy stimulating growth through more productive investments.
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Canada did not suffer a property crash in 2009.
Since than the Bank of Canada has injected billions into the economy through its low interest rates to spur growth through low cost investments.
"However, in Canada, only households took the Bank of Canada up on that offer, pushing debt levels to extremes"
"The debt-fuelled frenzy for real estate has lead to the biggest property bubble this country has ever experienced."
In growing Canadian cities it is practically impossible for young people to buy a home large enough to have a family. So they don't.
This has SERIOUS long term effects on economic growth we can not ignore.
Non-subsidized Co-Ops are shared ownership which remove the speculation value of home ownership.
The unfortunate alternative to NOT addressing speculation is massive family social support programs to help families who spent beyond their income on housing. And massive Government investments, to compensate for the lack of private investments. This is what the Canadian Government is considering.
1) 30% to 40% of all new development should be Co-Op so that home buyers are not forced to be property speculators. This will free up home owner's money to be spent in the economy stimulating growth through more productive investments.
2) At the provincial level subdivided home lots are too small for redevelopment into mid / high rise buildings and provide no opportunity for community parks to replace peoples back yards. And cul de sac need to be removed to allow for high density communities.
Winning approval for high density redevelopment is speculators lottery. It should be the home owners of the city block who all benefit, not A rich speculator driving the prices through the roof.
Now everyone big and small wants to play the speculator game and this is the PROBLEM!!!!
Home owners are share holders of their (common property) city block or suburban block enclosing their cul de sac. However laws don't reflect this reality.
3) At the City level remove individually approved redevelopments creating cronyism and replace it city wide redevelopment regulations.
Another problem with the current individually approved redevelopment, is it hides the land redevelopment value and creates a gambler's game. The gambler's game makes it possible that the land property will be worth a lot more than imaginable today. Of course we don't know which properties will win the payout, But because all the gamblers know that properties will probably eventually pay out, all the gamblers bid up the prices to unimaginable values. Gambler pricing should be taught in ECON101
City wide density redevelopment regulations remove the future gamble, because we all know the clearly defined conditions for density increasing redevelopment.
Please see my response to
Andrea Reimer
There is a few reasons why this adhock individual redevelopment does not work. First there is NO code for building separation, green space or community services. A few years back I took my professional exams. One of the questions I will never forget was providing water services for a community. The correct answer was measure the community demographics, residential, services, industrial and this is how much water needs to be provided. It didn't mater that community was a northern community accustom to less water services. It was full coverage, reduced coverage or restricted coverage.
You see redevelopment has the same challenges, when it comes to building separation, transportation and social services.
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