Too much, or too little: Has the housing crisis led to overbuilding?

The financialization of housing is just monetary policy. The Bank of Canada gutting rates and doing QE is meant to entice people to sell their homes, and prices rise until people do it, in which case a mortgage is created as new cash in the economy and the house is securitized as a loan.

This then feeds into aggregate demand, to attempt to derive a 2% inflation target using an index that contains subjective hedonic adjustments to lower the value of goods, substitutions so as consumers buy cheaper food the CPI changes. The CPI also excludes housing appreciation but includes mortgage interest, so the Bank of Canada can print money to buy half of all mortgage bonds to raise home values, while effectively lowering inflation and depressing interest rates to further inflate home values.

https://www.bankofcanada.ca/2024/01/operational-details-government-purchases-canada-mortgage-bonds/

So really our government is simply antagonistic to renters and non-home owners, using financial repression to milk them for fake GDP growth.