Why do governments (not just Montreal) seem intent on creating affordable housing in very expensive areas? Surely the effective price of having that housing there could buy a lot more housing somewhere where housing is less expensive. So maybe this outcome is the best one? Perhaps (and I'm making these numbers up) a developer would rather pay a tax of $500,000 than add one unit of affordable housing, and then that $500,000 can be used to buy two units of affordable housing somewhere else where property is cheaper.
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