British Columbia

Supply and demand are connected, sure, that I wouldn't contest. But we've had over-supply for an extended time now, resulting from cratering demand. Even the BC law change you reference, is something that cuts demand for 'income'/'investment' properties, which's why they got dumped onto the market in some areas. The change removed that 'demand' category from the market, stunting prices. But suppliers/developers kept on building at the high-cost of ownership rates.

On the market, there's been like 5000+ homes just sorta sittin there, with about 400 sold per month in Vancouver, with that imbalance growing for years. There's a ton of supply, but there's no demand at the prices they're being listed at. So on the supply/demand mix, especially seeing as its been a 'buyers' market for years now, it's demand that's missing / absent. Even if it's missing/absent, as a result of there being few locals who can afford the prices things are listed at -- that things are 'available', there's plenty of supply.

I mean, in some ways the core issue facing govts is that they need to have homes at a far lower price point, so that there's more local demand for it.... while also maintaining existing housing prices, so that current home owners don't all go bankrupt. They essentially need to freeze the housing prices, to allow local wages to catch up for a decade or so.