Reddit reviews House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again
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If any of you are interested in finding out the real cause and credible solutions to the 'affordability crisis', read Mian and Sufi's "House of Debt". http://houseofdebt.org/ http://www.amazon.ca/House-Debt-Recession-Prevent-Happening/dp/022608194X
While it is true that land use, housing stock, immigration (or more topically, capital flight) have made and impact on affordability, the main cause of Canada's housing bubble is the availability of cheap credit and the ease of obtaining credit.
For everyone who says that "housing prices only go up", you only need to look as far back as 2008 when housing prices plunged but immediately recovered because of the reduction of the Bank of Canada's overnight lending rate, reduced downpayment requirements for borrowing, and the availability of 40 year amortizations. All of which brought down monthly debt service costs to an 'affordable' rate for new entrants to the housing market.
And for again, for those of you who think house prices never go down, take a look at what's happening to Calgary, Ottawa, Montreal and Winnipeg's housing markets right now.
Read this: https://www.amazon.ca/House-Debt-Recession-Prevent-Happening/dp/022608194X
House of Debt, Mian & Sufi