{"id":23,"date":"2026-09-23T12:00:00","date_gmt":"2026-09-23T12:00:00","guid":{"rendered":"http:\/\/blogs.room-vu.com\/alanyurealestate-ca\/2026\/09\/23\/canada-rate-cuts-can-worsen-affordability\/"},"modified":"2026-09-23T12:00:00","modified_gmt":"2026-09-23T12:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.alanyurealestate.ca\/blog\/2026\/09\/23\/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\/alan-yu\/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>As someone who guides clients through Vancouver\u2019s ever-evolving real estate landscape, I keep a close eye on the dynamics that shape housing affordability. Recent research from central bank economists reveals that when interest rates are cut, there\u2019s a quick surge in homebuying activity\u2014resales start climbing almost immediately, and the full impact shows up within 18 to 24 months. Yet, new housing supply is much slower to respond, often taking about two years before starts pick up. This lag is even more pronounced for multi-unit projects, thanks to the longer timelines for planning and permits. The study also notes that a strong job market and easier lending can supercharge demand, but builders only ramp up when higher prices and lower financing costs make new projects more viable. What\u2019s clear is that while lower rates can eventually encourage more supply, the immediate effect is to push demand higher\u2014and that doesn\u2019t solve affordability pressures on its own. Monetary policy, it seems, isn\u2019t a silver bullet for housing affordability in Canada.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As someone who guides clients through Vancouver\u2019s ever-evolving real estate landscape, I keep a close eye on the dynamics that shape housing affordability. Recent research from central bank economists reveals that when interest rates are cut, there\u2019s a quick surge in homebuying activity\u2014resales start climbing almost immediately, and the full impact shows up within 18 [&hellip;]<\/p>\n","protected":false},"author":478,"featured_media":24,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-posts"],"_links":{"self":[{"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/posts\/23","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/users\/478"}],"replies":[{"embeddable":true,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/comments?post=23"}],"version-history":[{"count":0,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/posts\/23\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/media\/24"}],"wp:attachment":[{"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/media?parent=23"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/categories?post=23"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.alanyurealestate.ca\/blog\/wp-json\/wp\/v2\/tags?post=23"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}