Sure, but to some extent you could say the same about any necessity. Groceries, clothing, healthcare, etc… Then we could extend that to the things that are required for those necessities, transportion, natural resources, sections of the labour market, etc… Maybe housing does actually have a larger gap between input costs and market rate, and it’s probably the single largest expense for most and particularly those at the lower end of the income scale so it’s good place to start making changes.

If we trusted most people to manage their budgets we wouldn’t need things like EI and CPP, people would just be setting aside enough to cover that. People also need time to build those emergency or planned upgrade funds so telling someone who’s only been on their own to make sure they have enough se aside to cover a major repair isn’t very practical.

I would argue that landlords provide a service in providing a relatively predictable monthly cost of housing. On any given month a homeowner(and/or landlord) could have anywhere from $0 to thousands of dollars of unexpected expenses, things like a major appliance failing or plumbing/electrical issue. Plus there’s intermittent expanses that can be planned for, things like replacing shingles or proactively replacing an appliance approaching its end of life.

It also seems like a market with relatively free competition, given that the cost of purchasing a rental property can be relatively low compared to opening another kind of business. It’s relatively low risk since most of the expense is an appreciable asset, but also relatively low return (historically and over an extended period) than other market investments. Many would actually come out ahead by renting their home and putting the equivalent of what would go to toward their home’s equity into something like a mutual fund.

I think the biggest issue is just lack of good options at the lower end of the housing market. So much new construction is above the average home pricing because that’s where the builders are able to make a reasonable return. The more affordable properties are usually older units, often with significant issues. The Canadian government seems to be on the right track to getting more affordable units built. We don’t need more 1500+ ft^2 units, we need more units in the 500-700 ft^2 range. Something that a single person or young couple with minimal possessions can use as a starter home to build equity. Even if it gets bought by someone to use as an investment property, it can still have a relatively affordable rent while still providing a landlord a reasonable return on their investment.

More affordable units also reduces demand for the currently available units, bringing down prices for the mid-range market as well.

That’s an issue, but it’s not the whole issue. You’re not going to get a reasonable home down to the price of a budget vehicle. It’s not just home prices alone that have gone up over 60 years, it’s most essential goods combined with stagnating wages that means people need to spend a greater portion of their of their income on basic essentials and don’t have as much left to save for future big purchases.

Don’t get me wrong, homes need to be more affordable, but arbitrary reductionist ideas like let’s ban landlords don’t really work.

Some other ideas might be to increase minimum wages, yes this increases inflation but the people at the lower end of the wage scale still come out ahead. Have a crown corp for housing, even if it needs to be subsidized. Give people affordable and reasonable quality options and make private industry have to compete against that. Some better benefits for tradespeople, like lower the exemption on the trade tools tax credit to make construction more affordable. Though there’s a weird thing that happens where companies bring in big crews of apprentices for cheap labour and then lay-off the journeypeople so they don’t have to pay Journeyperson wages. I guess this keeps costs lower, but it’d be nice to see something combat this so there’s better job prospects for people that complete their apprenticeships.

Housing is one of the most expensive purchases most people will ever make. Are you saying everybody must be able to commit to that to have a place to live?