2023-09-18 21:17:31
Censoring rent prices would not encourage developers to come and invest in real estate and could be one of the multiple causes of the housing crisis, believes Gabriel Fortin, alias Josfinance.
According to the specialist, it is important to allow the price “to float freely” rather than trying to freeze them.
“Prices are a communication system. This is how investors and entrepreneurs understand that there is demand, that this demand is high and that it is attractive to invest in real estate to build rental units,” he said. -he explained Monday on QUB radio.
“But when we put price control measures in place, we stifle this signal and then the economic agents do not know that it is attractive, the profitability is not there and that creates the problem that “We currently have,” said Gabriel Fortin.
Thus, letting prices float would direct necessary resources where demand is high. “Currently, we do not have this signal, which means that construction is in deficit,” he stressed.
Units too old
According to Josfinance, increasing real estate construction would free up old housing which is sometimes older, and therefore less expensive.
“The real estate stock in Quebec is extremely old, with 70% of the units were built before 1979. These units will be less expensive than the new ones, but there must be a significant volume that comes in, otherwise the transfer will not happen. don’t,” he said.
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