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By A Smith (anonymous) | Posted September 06, 2008 at 19:47:51
Anytime government restricts land use they increase the cost of homes, a simple case of supply and demand. Builders on the other hand do not restrict land use, in fact they would like to open up every single acre of land in Ontario to be able to build homes.
The fact that customers demand larger lots for their homes is not the fault of the builders, it is simply the buyers preference. Builders have a every motive in the world to reduce costs, and that includes keeping lot sizes small. Therefore, it is entirely the buyers who are driving the suburban lifestyle, and not big bad business.
A huge part of the cost in buying a home today is excessive government regulations, including zoning. Once again government interference distorts the natural interaction between buyer and seller, all the while claiming to be a friend of the poor.
A more cynical look at the greenbelt makes one wonder if it is not existing homeowners who benefit the most from this policy. Just as occupations lobby government to restrict the number of workers in their chosen field (thus keeping wages artificially high, i.e. plumbers, doctors, auto mechanics), existing homeowners benefit when their biggest asset (their house) is kept in short supply.
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