Issue
5 – New community developments control
This is not a question of whether I
am “developer friendly” or not. It’s straightly
an example of government intervention in free market!
Last December, Council announced to
stop issuing Building Permits up to 10 years to development projects with Area
Structure Plan approved. Can anyone tell
me what’s problem on that decision?
What problems may arise from this
decision?
1.
Houses price will go up due to less
supply
2.
Higher house price means higher
property tax
3.
Less new houses can be built means
less choice for consumers
4.
Higher house price and make Calgary even
more unaffordable for the youth
5.
Loss of jobs
Just imagine if no new houses can be
built in the next 10 years, how many of those 37,000 people employed by
developers, builders, construction companies and trades still have their job?
How about another 5,200 licensed
real estate brokers plus their assistants?
If not much new houses for existing home owners to choose from for
moving up, I can just foresee a drop in the listings and who will suffer and
who will benefit from such situation?
There will be so many unintended consequences
when government start intervene free market, no matter what intention! Real estate development is a highly risky
business and I would support development plans that could maintain or improve the
quality of life around its neighbor communities. I believe there are enough regulations to
make sure these new developments are viable.
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