{"id":27,"date":"2026-09-21T17:00:00","date_gmt":"2026-09-21T17:00:00","guid":{"rendered":"http:\/\/blogs.room-vu.com\/shabbirburhani-com\/2026\/09\/21\/canada-rate-cuts-can-worsen-affordability\/"},"modified":"2026-09-21T17:00:00","modified_gmt":"2026-09-21T17:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.shabbirburhani.com\/blog\/2026\/09\/21\/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\/shabbir-burhani\/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>Recent research from the central bank highlights a reality I often see firsthand across the GTA: while lower interest rates can spark an uptick in homebuying demand almost immediately, the supply of available properties takes much longer to catch up. In Canada, we typically see resale activity increase soon after a rate cut, but the full effect isn\u2019t felt until 18 to 24 months later. Meanwhile, new housing starts might not pick up for about two years. This delay is even more pronounced with multi-unit projects, given the lengthy planning and permit processes involved.<\/p>\n<p>Strong labour markets can further amplify this demand, as people feel more secure financially and are quicker to make a move\u2014something that\u2019s especially relevant in our fast-paced Ontario market. However, as the research points out, relying on rate cuts alone won\u2019t solve our affordability challenges. The increase in demand comes well before new supply can respond, and that imbalance keeps pressure on prices.<\/p>\n<p>Having worked with clients navigating everything from pre-construction developments to established neighbourhoods, I know how important it is to look beyond borrowing costs and understand the full picture. True affordability depends on a coordinated approach\u2014one that addresses both demand and the real-world timelines for building new homes.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Recent research from the central bank highlights a reality I often see firsthand across the GTA: while lower interest rates can spark an uptick in homebuying demand almost immediately, the supply of available properties takes much longer to catch up. In Canada, we typically see resale activity increase soon after a rate cut, but the [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":60,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/posts\/27","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/comments?post=27"}],"version-history":[{"count":0,"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/posts\/27\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/media\/60"}],"wp:attachment":[{"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/media?parent=27"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/categories?post=27"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shabbirburhani.com\/blog\/wp-json\/wp\/v2\/tags?post=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}