because governments make lots more money in land transfer and other taxes if the prices are higher... they dont care about the people who can't afford very expensive houses. The politicians are also buddies with real estate developers and the industry. Do you know that Tim Hudak, the former head of Ontario Conservatives is now CEO of Ontario Real Estate Association fighting any foreign tax or other measures to fight the bubble. Goes to show where the heads of the politicians are...they are in the pockets of the developers... they are not for the people....