National Bank economists say Ottawa should target supply

Federal policymakers should focus on lack of housing supply rather than trying to curb demand according to economists at National Bank Financial.

A report by Warren Lovely and Marc Pinsonneault highlights the $120 billion that the real estate industry generates in revenue for Canada’s governments: “This is one cash cow you don’t want to tip over,” they warn.
While house prices are unaffordable in some markets, the economists suggest that boosting supply of housing would generate additional income for all three levels of government.

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