After Scotiabank CEO Brian Porter issued a warning saying the bank is concerned about high housing prices in both Toronto and Vancouver and has eased off mortgage lending, Vancouver mayor Gregor Robertson is once again making an appeal to the provincial and federal government to take action.
Robertson says while adding more housing supply is crucial, it isn’t an affordability issue on its own.
He says unregulated, speculative global capital is flowing into the market and as a result housing prices are becoming disconnected from local incomes.
He goes on to say housing needs to be for homes, not just treated as a commodity.
Robertson is repeating his earlier calls for a luxury sales tax – which Premier Christy Clark has already said no to – and adds he supports a CIBC deputy chief economist’s call for a “flipping tax” as a measure to reduce speculation.