{"id":17,"date":"2026-09-16T11:00:00","date_gmt":"2026-09-16T11:00:00","guid":{"rendered":"http:\/\/blogs.room-vu.com\/kawaliteam-ca\/2026\/09\/16\/canada-rate-cuts-can-worsen-affordability\/"},"modified":"2026-09-16T11:00:00","modified_gmt":"2026-09-16T11:00:00","slug":"canada-rate-cuts-can-worsen-affordability","status":"publish","type":"post","link":"https:\/\/www.kawaliteam.ca\/blog\/2026\/09\/16\/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\/joe-kawalit\/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>When the Bank of Canada cuts interest rates, it\u2019s easy to assume that lower borrowing costs will make homeownership more accessible. But research from central bank economists tells a more complex story. In Canada, we typically see an uptick in home resales soon after a rate cut, with the strongest impact showing up 18 to 24 months later. However, the supply side\u2014meaning new housing starts\u2014lags behind, often beginning to increase only about two years after the rate cut. Strong job markets can intensify this demand, as buyers feel more confident and lending is easier, pushing activity even higher. Yet for builders, it takes time to respond: higher prices and improved financing make new projects more attractive, but planning and permitting, especially for multi-unit developments, add further delays. Ultimately, while rate cuts may eventually lead to more housing supply, demand always moves first. As a Realtor and Broker with nearly two decades of experience in the GTA, I\u2019ve seen how affordability challenges can\u2019t be solved by monetary policy alone\u2014timing and market dynamics matter just as much.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When the Bank of Canada cuts interest rates, it\u2019s easy to assume that lower borrowing costs will make homeownership more accessible. But research from central bank economists tells a more complex story. In Canada, we typically see an uptick in home resales soon after a rate cut, with the strongest impact showing up 18 to [&hellip;]<\/p>\n","protected":false},"author":466,"featured_media":18,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-posts"],"_links":{"self":[{"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/posts\/17","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/users\/466"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/comments?post=17"}],"version-history":[{"count":0,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/posts\/17\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/media\/18"}],"wp:attachment":[{"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/media?parent=17"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/categories?post=17"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kawaliteam.ca\/blog\/wp-json\/wp\/v2\/tags?post=17"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}