1) rates were kept low to keep the Canadian dollar exchange rate low 2) Chinese and foreign investors loaded up on real estate and locals also jumped on the band wagon 3) condos are 2x per sq ft as expensive to build as regular housing 4) building regs in Van and Toronto push everything to condos 5)low rates and mortgage insurance helped fuel the boom 6) tax policy also fueled it 7) as does immigration policy and bad transit systems 8) productivity gains in construction for the past 20 years are basically flat. Driving up relative cost of construction to other goods

Summary: govt created a housing bubble let's see what happens.