There is an issue with property, and the availability of vacancies. For almost a decade, the vacancy rate ticked up, particularly the years 2016-2019, indicating we had a sufficient amount.
Zoning and rates, availability (ex price) of credit and a tax advantaged status help bid up prices, but that’s a distinctly different concept to “are there enough”.
However, COVID changed how we want to form households, and that’s really most of what we are looking at here.
So, okay, that’s the signal, build more.
Unfortunately, we now have a similar problem to our American friends. Rates will discourage additional supply when we absolutely need it, and it’s not clear the normal configuration of finance is going to deliver a great outcome for all here.
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