As I said, yes, there are a number of reasons for investment in housing. The main slowdown we're seeing right now in terms of housing investment is largely due to higher interest rates.
These are the big, macro factors that are driving housing investment.
One of the challenges they're facing around housing here where I live, in Vancouver and in British Columbia more broadly, is just simply the cost of building housing. It's a lot: When you have to buy land and you have to pay for construction, interest rates and other fees, just to break even on a rental property is about $2,000 a month. That's without any profit at all.
If we're trying to rely on the for-profit housing development sector to build affordable housing for us, it's just not really possible, simply because of the math of the cost of construction, so we've been emphasizing much more that we need a generational build of non-market housing, which can be built at lower break-even rents for rental properties, because you're taking developer profits out of the equation and you don't have to worry about this funny calculus about whether developers think that having to pay slightly more tax on various capital gains way down the road will affect the decision-making. You're directly building the housing that is needed by Canadians.
I think that's kind of a better way of looking at this. I mean, I've been looking at housing as an issue for eight years. I've published a lot. We have a big report coming out tomorrow with recommendations for local, provincial and federal governments around next steps for next-generation housing policies, and the capital gains inclusion rate has never come up.