{"id":131,"date":"2026-09-17T09:00:00","date_gmt":"2026-09-17T09:00:00","guid":{"rendered":"https:\/\/www.sammehrbod.com\/blog\/?p=131"},"modified":"2026-09-17T09:00:00","modified_gmt":"2026-09-17T09:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.sammehrbod.com\/blog\/2026\/09\/17\/canada-rate-cuts-can-worsen-affordability\/","title":{"rendered":"Canada: Rate Cuts Can Worsen Affordability"},"content":{"rendered":"<div class=\"video-zmyer\">\n<div class=\"video-frame-zmyer\">\n        <iframe loading=\"lazy\" width=\"640\" height=\"640\" src=\"https:\/\/www.roomvu.com\/agent\/embed\/sam-mehrbod-prec\/bank-rate-cuts-remotion-videos-3cc9\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><br \/>\n        <\/iframe>\n    <\/div>\n<div class=\"video-description-zmyer\">\n<p>A new study from central bank researchers sheds light on a point I see play out regularly in Vancouver\u2019s market: lowering interest rates can actually worsen housing affordability in the short term. Their data shows that when rates drop, resale activity surges almost immediately, with the full effect unfolding over 18 to 24 months. Yet, housing starts\u2014especially for multi-unit projects\u2014don\u2019t ramp up until about two years later.<\/p>\n<p>The research also highlights that strong labour markets and easier lending conditions fuel this demand spike, as buyers feel more confident and move quickly. But on the supply side, builders need time: improved project viability thanks to higher prices and lower financing costs is just the first step. Permitting, planning, and construction all take much longer.<\/p>\n<p>In my experience working with investors and developers across Greater Vancouver, this lag between demand and supply is significant. Rate cuts may eventually help bring more homes to market, but supply always trails demand\u2014so relying on monetary policy alone can\u2019t fix affordability. Understanding these cycles is key to making smart, long-term real estate decisions.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A new study from central bank researchers sheds light on a point I see play out regularly in Vancouver\u2019s market: lowering interest rates can actually worsen housing affordability in the short term. Their data shows that when rates drop, resale activity surges almost immediately, with the full effect unfolding over 18 to 24 months. Yet, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/posts\/131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/comments?post=131"}],"version-history":[{"count":1,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/posts\/131\/revisions"}],"predecessor-version":[{"id":132,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/posts\/131\/revisions\/132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/media\/135"}],"wp:attachment":[{"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/media?parent=131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/categories?post=131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sammehrbod.com\/blog\/wp-json\/wp\/v2\/tags?post=131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}