{"id":20,"date":"2026-09-17T14:00:00","date_gmt":"2026-09-17T14:00:00","guid":{"rendered":"http:\/\/blogs.room-vu.com\/jonathanwu-ca\/2026\/09\/17\/canada-rate-cuts-can-worsen-affordability\/"},"modified":"2026-09-17T14:00:00","modified_gmt":"2026-09-17T14:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.jonathanwu.ca\/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\"\n                src=\"https:\/\/www.roomvu.com\/agent\/embed\/angie-tsai-prec\/bank-rate-cuts-remotion-videos-3cc9\"\n                frameborder=\"0\"\n                allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\"\n                allowfullscreen><br \/>\n        <\/iframe>\n    <\/div>\n<div class=\"video-description-zmyer\">\n<p>The relationship between interest rates and housing affordability in Canada is more complex than it might seem at first glance. Central bank research shows that when rates are lowered, we see a quick uptick in home resales\u2014often within just 18 to 24 months\u2014while new housing supply lags, typically taking about two years before we notice an increase in starts. This means that while lower borrowing costs make it easier for buyers to enter the market, the resulting surge in demand often outpaces the increase in new housing, which can actually worsen affordability in the short term.<\/p>\n<p>From my years of working in both residential and commercial real estate\u2014and with a background in supply chain management\u2014I\u2019ve seen firsthand how builders must navigate a longer planning and permitting process, especially for multi-unit developments. Even as stronger labour markets and easier financing encourage buyers to act quickly, it takes time for construction to catch up. Ultimately, while rate cuts may help add supply later on, they aren\u2019t a cure-all for affordability challenges. For clients making decisions in this dynamic market, understanding the timing between demand and supply is essential to making informed moves.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The relationship between interest rates and housing affordability in Canada is more complex than it might seem at first glance. Central bank research shows that when rates are lowered, we see a quick uptick in home resales\u2014often within just 18 to 24 months\u2014while new housing supply lags, typically taking about two years before we notice [&hellip;]<\/p>\n","protected":false},"author":195,"featured_media":50,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-posts"],"_links":{"self":[{"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/posts\/20","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/users\/195"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/comments?post=20"}],"version-history":[{"count":0,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/posts\/20\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/media\/50"}],"wp:attachment":[{"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/media?parent=20"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/categories?post=20"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jonathanwu.ca\/blog\/wp-json\/wp\/v2\/tags?post=20"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}