The low interest rate trap

Metro News quoted cited work by UBC professors Paul Kershaw and Thomas Davidoff for a story on the challenges associated with low interest rates in real estate.

Kershaw, a professor at the School of Population and Public Health, argued older Canadians benefit from current taxation and policy while younger people struggle.

“I can’t understand why we couldn’t think about having a general approach to lending, but then have a more specified approach to the way we’re lending in regards real estate,” he said.

UBC economist Davidoff said measures such as the 15 % foreign buyer’s tax and increasing the supply of homes would be better solutions for housing affordability than adjusting interest rates.