{"id":12,"date":"2026-09-14T11:00:00","date_gmt":"2026-09-14T11:00:00","guid":{"rendered":"http:\/\/blogs.room-vu.com\/mverma-ca\/2026\/09\/14\/canada-rate-cuts-can-worsen-affordability\/"},"modified":"2026-09-14T11:00:00","modified_gmt":"2026-09-14T11:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.mverma.ca\/blog\/2026\/09\/14\/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\/mayank-verma\/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>I&#039;ve been following the ongoing conversation about housing affordability in Canada, and some recent research from our central bank caught my eye. The findings highlight something many of us see firsthand: when interest rates are cut, home resales pick up quickly\u2014often within months\u2014and the full impact shows up about 18 to 24 months later. Meanwhile, new housing starts tend to follow, but there\u2019s usually a two-year lag before we feel that boost in supply.<\/p>\n<p>The researchers also point out that strong labour markets can speed things up, making buyers feel more confident and nudging them into action as lending conditions get easier. On the builder side, it takes longer\u2014planning, permits, and especially multi-unit projects simply move at a different pace. Even though lower rates help make projects more viable, the response isn\u2019t instant.<\/p>\n<p>The main takeaway? While rate cuts can eventually bring more homes to market, they often drive demand first, and that means affordability pressures can actually get worse before supply catches up. Monetary policy alone isn\u2019t a quick fix for affordability\u2014a point that really resonates with what I see in our communities across Surrey, Vancouver, and beyond.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I&#039;ve been following the ongoing conversation about housing affordability in Canada, and some recent research from our central bank caught my eye. The findings highlight something many of us see firsthand: when interest rates are cut, home resales pick up quickly\u2014often within months\u2014and the full impact shows up about 18 to 24 months later. Meanwhile, [&hellip;]<\/p>\n","protected":false},"author":280,"featured_media":36,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-posts"],"_links":{"self":[{"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/posts\/12","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/comments?post=12"}],"version-history":[{"count":0,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/posts\/12\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/media\/36"}],"wp:attachment":[{"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/media?parent=12"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/categories?post=12"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mverma.ca\/blog\/wp-json\/wp\/v2\/tags?post=12"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}