TORONTO— Royal Bank’s top executive says he’s “increasingly concerned” about the Toronto and Vancouver housing markets and would welcome government interventions.
RBC chief executive Dave McKay says the rapid increase in housing prices in the two cities is the product of an “unhealthy combination of factors.”
He listed an imbalance in supply and demand for residential properties, low interest rates and speculative activity.
McKay says a single solution to these problems is unlikely to be successful.
Instead, McKay says, there need to be multiple solutions to address such a complex problem and he would welcome interventions from federal, provincial and local governments.
McKay made his comments in Toronto during Royal Bank’s (TSX:RY) annual shareholder meeting.