To solve Dutch housing crisis, proposal aimed to ban the rich from buying some homes. Could it work here? | CBC News
To solve Dutch housing crisis, proposal aimed to ban the rich from buying some homes. Could it work here? | CBC News
In an attempt to deal with an affordable housing crisis, the Dutch housing minister recently proposed a law that would have allowed municipalities to force some property owners to sell their homes only to low and middle-income earners. The problem the policy is trying to fix is one that's particularly acute in Canada.
Biggest concern with this type of policy is that it has the potential to restrict housing supply. If you give less incentive for people to sell, then they might just hold on to their homes.
On the other hand, if buyers cannot afford the house anyway, does it make a difference?
At the very least, I want to see municipalities crack down on companies that scoop up real estate for the purpose of controlling the rental markets. Those companies have deep pockets and can outbid the average home buyer. For example, in Ottawa, the Vacant Unit Tax was a good first step, but I would like to see more.