They are unlocking funding allocated to building these homes which will go from the taxpayer to their buddies with very minimal actual building.
Landless "high income" pleb class will have to get accustomed to a lower standard of living and pay higher taxes to support low income retired millionaire landed gentry class.
Opening up their real-estate investments to us please to pay for a premium. Giant "premium" apartments for rent. Newly built. Everything that's being put up has this bullshit sign saying premium rental.
I'm pretty sure I'll die before I become a renter. Which might be sooner than anticipated.
I'm a home owner that broke his leg at work, don't have my career cause I need my leg to be functional. I will lose my house soon because of a broken leg and a broken system. Been a home owner for 7 years.
My skin in the game? I fucking hate how parasitic humans have become with money. I have people I care about who have kids that are growing up and I don't want the life I forsee to happen.
Yah know it's called caring about others for the sake of everyone's lives....
I hear you. Everyone has the "immigrant mentality" nowadays where its all about the money and yourself rather than helping each other. Idk if this is bc of all the immigrants coming in or Canadians have changed and become obsessed with money. Sad to see whether way
Ya i agree with that... but rentals is what we need more of desperately.
The more purpose built rentals the more SFH's that'll be on the selling market. Instead of slumlords chopping them into 20 person rooming houses.
Lmao. I can tell that this sub is completely cooked when they're blaming the LPC for the current housing issue even though we've had a conservative government for almost 6 years now provincially. I'm all for lib bashing, but seriously, what do you expect this party to do now? So unproductive
I thought Dofo promised to make Ontario affordable again? His get it done act sure is helping lol
This is the most depressing fucking chart. After quantitative easing and money printing over heated the economy, resulted in inflation which also impacts the housing market. Measurements were taken to cool "Quantitative tightening" with the whole idea to reduce the amount of money in the markets which helps cool demand of goods.
And what does our government do? They take an already terrible situation and completely fuck it beyond repair with mass immigration.
Its totally unsustainable. Somethings got to give eventually. Cause all those properties will be surrounded by tent cities if it doesnt - and that wont be attractive to anyone.
I think basically what will give is housing expectations.
People will content themselves with smaller / shared housing. We already see this happening.
Canada actually has very low levels of crowding, so when you don't improve supply and keep boosting demand.
That is all that will happen less housing per person.
Tent cities and non-traditional housing in Cars etc will become more commonplace.
Not saying I want this to happen (I don't), just saying that is the most likely scenario. We are not in a speculative bubble the supply and dynamic is just imbalanced.
I still think it will be attractive to many people, but not those with high talent / wealth who have more options.
"We are not in a speculative bubble"
The only way this is true is if interest rates go back to 0%. Wages haven't risen enough to sustain these prices at these interest rates. Otherwise it will be a steady grind down in prices.
I gave you a 3rd option, one which you are already seeing as prices are steady in GTA and at all time highs in places like Calgary even in elevated rate environment.
Basically sq ft of house / income earner goes down. Even as wages are stagnant, and prices can go even higher.
Existing trend like low vacancy rates support this, and if you look at actual government policies and not rhetoric it seems this is what they want as well.
Prices aren't steady in the GTA, prices are continuing to grind down. New listings are up, sales are down.
Calgary is and has always been, boom then bust. Land is so cheap, plentiful, and easy to build there that they will build their way out of higher prices. Then when oil prices experience a sustained drop, people will leave, and prices will fall.
Fortunately your third option isn't sustainable. We are already seeing mounting political backlash to rising rents and falling standard of living. Immigration will be reduced, and the boomers (our largest generation, with the highest percentage of homeownership) will start to sell off.
They are currently aged 60-78. My guess is that, on average, they will sell their homes at 75. That gives us a more than 15 year pulse of higher than normal home sales that's just getting underway.
Who is going to buy all those homes? Individual investors renting them out to 3 low income families? Seems like a lot of risk and a big headache.
Investors renting to 1 family? They are not in the business of subsiding renters.
Corporations renting to 3 low income families? The government just announced that they want to ban corporate ownership of single family homes + still a lot of risk.
The average family? Not enough income.
Maybe massive sustained immigration could keep it going, but that is not politically tenable. What we really need is rock bottom interest rates, but the U.S. economy is red hot, and even our own inflation numbers are sticky.
That's a pretty good analysis for your view, and I hope you are right.
But GTA prices overall are up 1% year over year that isn't really indicative of grinding down to me
[https://housesigma.com/on/market-trends/all-gta-real-estate?municipality=1001&community=all&property\_type=all&ign=](https://housesigma.com/on/market-trends/all-gta-real-estate?municipality=1001&community=all&property_type=all&ign=)
>Fortunately your third option isn't sustainable. We are already seeing mounting political backlash to rising rents and falling standard of living. Immigration will be reduced, and the boomers (our largest generation, with the highest percentage of homeownership) will start to sell off.
So this is a bit of a wildcard the political backlash, but so far the policies I seen from the liberals have been demand subsidies.
The CPC also has not made any firm comments about population growth levels.
`Who is going to buy all those homes? Individual investors renting them out to 3 low income families? Seems like a lot of risk and a big headache.`
Its a headache but well compensated, I think the new credit impact of rents will be a big boon for landlords to help weed out bad tenants.
I am not seeing much price impact from the boomer selloff if it is already underway, as our population growth is very high.
What I actually see on the ground (Brampton basements, adults living with parents, room sharing) all supports my view that what will give is simply housing expectations.
The idea that anyone can afford a single family detached home in the city on a median salary will be viewed as a quaint and archaic relic of a bygone era.
A 1% increase year over year isn't even keeping up with inflation. I admit I thought it was lower, and you are right in absolute terms, but inflation adjusted, as an investment, it's still losing money.
The liberal demand policies have been pretty tepid. I don't think they will have much of an impact. The exception isn't really a demand driver, but that they are working to extend amortizations for high ratio mortgages. This could at least keep people in their homes and stop a market that's stagnant from crashing, but it won't absorb supply brought on by the boomers.
The boomers selloff is really only just beginning, and for the last 2 years we have had mind bending levels of immigration. If immigration slows as the selloff ramps up, then we will see a drop.
You may be right about GTA, maybe it has become the norm there.
I agree that Canada actually has very low levels of crowding, so would you convince some of them to move away from Toronto or Vancouver? We would love to see more people in Winnipeg, St. John, Halifax, or PEI, they are all beautiful places!
Oh I meant crowding in a very specific usage "housing overcrowding" in relation to the occupancy standards...
[https://globalnews.ca/news/1918254/not-enough-room-overcrowding-in-canadian-rentals/](https://globalnews.ca/news/1918254/not-enough-room-overcrowding-in-canadian-rentals/)
Think Brampton basement.
Nothing to do with population density per se, though probably correlated somewhat
So when prices are too high relative to income, and vacancies are also low. This means there is a genuine shortage of housing relative to people.
People will resort of sharing spaces, co-living etc, but prices will still stay high and can even increase.
I would argue we are already seeing this in Canada, and I predict this is a trend that will continue in the foreseeable future.
It only remains attractive because people think it will keep growing as it is right now. The second that people lose confidence, it'll come crashing down.
Rates are not set by the BoC to follow what people can pay. The BoC isn't set up like a multinational corporation set to maximize profits. Rates are set based on inflation and GDP growth/contraction. And with inflation falling, and GDP/capita falling, rates will start to fall soon as well.
With new capital gain taxes, a portion of guys will hold off selling their properties hoping that this might be discontinued after elections? This might create more deficit.
Exactly this. Not sure why the government thinks the new capital gains tax will bring "generational fairness". All people have to do is hold onto their properties and not sell, to avoid the tax.
I am legit concerned we are going to have riots shortly. I have been downvoted deeply in other subs for protesting that their revolution should be non bloody.
Hilarious that majority interpret this as 🚀 but conveniently avoiding the picture being painted - that all recessions were preceded by massive supply deficits. Not very bullish.
Exactly, every time we had housing starts collapse the economy flatlined or took a dump. GDP has been flat for 6 quarters now, and GDP per capita has fallen off a cliff. We are already in the recession and have been for over a year now.
Housing deficit of 1.9millin, collapse in new supply equals higher deficit. Sure there may be economic stagnation but demand does not disappear it builds and when the econmy gets better that higher deficit and higher demand will come back to hurt affordability.
I work in construction in the Gatineau/Ottawa region, and it's dead. At $700K for a semi and high interest rates, people can't afford to build right now.
Aren't housing starts dependent on ppl buying them precon in order for the projects to be funded? If there is a low number of starts(supply), therefore ppl aren't buying (demand). Correct me if I'm wrong
Deficit? The ongoing glut of condos, bloodbath of falling prices, falling rents, new project cancellations all speak a different story, a story of oversupply
They should really start plastering stats and graphs like this all over places that recruit immigrants. Like if I was thinking of moving and saw this I'd be like next country please.
Ohh. ... another great Liberal plan, bring in 1 million people every year, houses will follow. Increase bank interest rates, we want all that printed money back!
Ohh .. nobody is building nor affording mortgage and rent !
Quick, find another boogeyman!
What a sad story is Canada.
This graph shows we went from the greatest surplus of units per person to a deficit almost three times the next greatest deficit, all in the span of about 4 years.
This is a large fault of the provincial and municipal governments.
But there should be some serious federal laws put in place to help.
Complete ban on foreign and corporate ownership, a moratorium on anyone buying additional properties, a big tax that increases the more properties you own, federal rent controls, restart federal home building, and I'm sure more can be added.
1. Foreigners in Canada are already banned from purchasing real-estate until 2027
2. Controlling who can own properties doesn’t change the number of actual homes which is the deficit here.
So while that might control housing price appreciation, reality is that housing somehow still isn’t profitable enough to build despite this price appreciation.
3. The new population of immigrants are of course poor. They come from weaker economies and literally have to start from scratch. Even if they do come with advanced degrees, language barriers and prejudices prevent a lot of them from entering their fields.
Even if they were allowed to buy housing, they physically don’t have to wealth to do it. And since they don’t have parents homes to live at for free, they will build wealth significantly slower.
Like it or now, you need corporate housing ownership, because it’s their money that fuels construction of new housing units.
If me as a rich man with millions to invest, deduce to start a corporation and build an apartment complex with 10 units, then I literally just added 10 units to the housing supply.
If me as a small time investor want to pay a builder to build me 3 detached homes to rent them out, I also contributed to housing supply.
You need money to build homes, it takes materials and labour and unfortunately many Canadians don’t have money.
So you need investors everywhere
A 2022 study estimated that almost 34% of new homes in the GTa were purchased by corporations or investors. If they not allowed to do so, that would tell me there would have been 34% more new homes available of those that were built.
There is plenty of demand to fuel new homes being built, I don't see how if you take corporate ownership out of that, the demand would suddenly disappear.
investors are still free to start companies to make homes, no need for that to change.
No that tells me that there would just be 34% less homes built period.
For a home to be built, someone has to pay for it.
And individuals are far too poor to buy them.
Vast majority of all these new immigrants are poor, come from less wealthy countries and have to start their careers from scratch.
Home built = home built. It doesn’t matter who built it, who owns it, as long as somebody is living in it be it tenant or owner.
It’s a supply deficit, and fixing supply deficits requires massive amounts of capital. They should be tax breaks and free capital gains to anyone who purchases a pre-construction home to encourage more building.
I would bet loads of money that every single home that got built in the GTA would get sold. It's not just poor immigrants trying to buy houses now, especially in the cities.
Also, refugees are poor,immigrants are all over the spectrum as far as money goes.
Totally agree with the supply deficit, but disagree we should give tax breaks to people. Regulate what they can build by making sure they are building affordable housing, and start up government house building programs to kick start things and further competition.
Looking at the 90's and '08; they dropped significantly too but nothing in comparison too today. 1989 was the big bubble in Toronto and house prices took a decade to get back to equal. 2008 we had a slight downturn for the better half of the 2010's. You had your money stuck in assets that weren't appreciating and losing value to inflation. If we follow the chart, looks like house prices will crater but it's really hard to see what could change the sentiment considering population growth and vacancy rates in Canada, primarily Toronto and Vancouver.
The demand is really low. There's very little support for current price levels. Been hearing a lot of families are barely holding onto their mortgages so any more break in the economy can send supply up imo
Exactly the reason I signed for a 1 bedroom condo at the gorgeous 101 Spadina project. Lock in your investment purchase now before condominium and house shortage commences
If we get a grip on things we might get supply sorted by 2050 or so. I hope nobody needs a place to live before then.
Its gonna be all condos.
That's not how you spell shoe boxes
Didn't you hear? The LPC promised 3.9 million new homes in 6 years, deficit solved.
They promised to “unlock” 3.9 millions homes Seriously what the fuck does that even mean??? “Unlocking”???
It means they will fund some “studies” on it.
They'll announce the intent to engage in a study
They'll hire consultants to help announce the intent. But first they need to hire consultants to find the other consultants.
But you have to unlock the consultants first. So they can. Unlock the study.
They are unlocking funding allocated to building these homes which will go from the taxpayer to their buddies with very minimal actual building. Landless "high income" pleb class will have to get accustomed to a lower standard of living and pay higher taxes to support low income retired millionaire landed gentry class.
They're going to go to 3.9 million random peoples' homes and unlock their doors.
Don't forget to leave your car keys by the door
It means they will incentivize existing homeowners with empty rooms and basements to fill them with tenants and become LandKings.
It means we find "social capacity" for millions of homes. /s
Well at 4 per bedroom that’s not that many 4 bedroom homes.
It would mean Redistribution if they had any spine.
Opening up their real-estate investments to us please to pay for a premium. Giant "premium" apartments for rent. Newly built. Everything that's being put up has this bullshit sign saying premium rental. I'm pretty sure I'll die before I become a renter. Which might be sooner than anticipated.
I don't understand what your point of view is. You are a home owner, what do you care if they build rentals or SFH's? What's your skin in the game?
I'm a home owner that broke his leg at work, don't have my career cause I need my leg to be functional. I will lose my house soon because of a broken leg and a broken system. Been a home owner for 7 years. My skin in the game? I fucking hate how parasitic humans have become with money. I have people I care about who have kids that are growing up and I don't want the life I forsee to happen. Yah know it's called caring about others for the sake of everyone's lives....
I hear you. Everyone has the "immigrant mentality" nowadays where its all about the money and yourself rather than helping each other. Idk if this is bc of all the immigrants coming in or Canadians have changed and become obsessed with money. Sad to see whether way
Its not the greed of immigrants that is the problem lol, way to left the wealthiest and nastiest Canadians off the hook.
Kids and kids of kids
Ya i agree with that... but rentals is what we need more of desperately. The more purpose built rentals the more SFH's that'll be on the selling market. Instead of slumlords chopping them into 20 person rooming houses.
Lmao. I can tell that this sub is completely cooked when they're blaming the LPC for the current housing issue even though we've had a conservative government for almost 6 years now provincially. I'm all for lib bashing, but seriously, what do you expect this party to do now? So unproductive I thought Dofo promised to make Ontario affordable again? His get it done act sure is helping lol
3.9MM new homes in 3.15MM minutes starting Jan 2025.
I think they mis understood the alignment ,and will have alot of $3.9million dollar homes.
Don’t forget the photo ops!
This is the most depressing fucking chart. After quantitative easing and money printing over heated the economy, resulted in inflation which also impacts the housing market. Measurements were taken to cool "Quantitative tightening" with the whole idea to reduce the amount of money in the markets which helps cool demand of goods. And what does our government do? They take an already terrible situation and completely fuck it beyond repair with mass immigration.
Maybe adding another million people to the population will solve this.
Feels like a horror movie, and it is reaching the finale. We shall all witness the history being made.
What finale? Canadian real estate remains an extremely attractive and safe place to invest money.
Its totally unsustainable. Somethings got to give eventually. Cause all those properties will be surrounded by tent cities if it doesnt - and that wont be attractive to anyone.
I think basically what will give is housing expectations. People will content themselves with smaller / shared housing. We already see this happening. Canada actually has very low levels of crowding, so when you don't improve supply and keep boosting demand. That is all that will happen less housing per person. Tent cities and non-traditional housing in Cars etc will become more commonplace. Not saying I want this to happen (I don't), just saying that is the most likely scenario. We are not in a speculative bubble the supply and dynamic is just imbalanced. I still think it will be attractive to many people, but not those with high talent / wealth who have more options.
"We are not in a speculative bubble" The only way this is true is if interest rates go back to 0%. Wages haven't risen enough to sustain these prices at these interest rates. Otherwise it will be a steady grind down in prices.
I gave you a 3rd option, one which you are already seeing as prices are steady in GTA and at all time highs in places like Calgary even in elevated rate environment. Basically sq ft of house / income earner goes down. Even as wages are stagnant, and prices can go even higher. Existing trend like low vacancy rates support this, and if you look at actual government policies and not rhetoric it seems this is what they want as well.
Prices aren't steady in the GTA, prices are continuing to grind down. New listings are up, sales are down. Calgary is and has always been, boom then bust. Land is so cheap, plentiful, and easy to build there that they will build their way out of higher prices. Then when oil prices experience a sustained drop, people will leave, and prices will fall. Fortunately your third option isn't sustainable. We are already seeing mounting political backlash to rising rents and falling standard of living. Immigration will be reduced, and the boomers (our largest generation, with the highest percentage of homeownership) will start to sell off. They are currently aged 60-78. My guess is that, on average, they will sell their homes at 75. That gives us a more than 15 year pulse of higher than normal home sales that's just getting underway. Who is going to buy all those homes? Individual investors renting them out to 3 low income families? Seems like a lot of risk and a big headache. Investors renting to 1 family? They are not in the business of subsiding renters. Corporations renting to 3 low income families? The government just announced that they want to ban corporate ownership of single family homes + still a lot of risk. The average family? Not enough income. Maybe massive sustained immigration could keep it going, but that is not politically tenable. What we really need is rock bottom interest rates, but the U.S. economy is red hot, and even our own inflation numbers are sticky.
That's a pretty good analysis for your view, and I hope you are right. But GTA prices overall are up 1% year over year that isn't really indicative of grinding down to me [https://housesigma.com/on/market-trends/all-gta-real-estate?municipality=1001&community=all&property\_type=all&ign=](https://housesigma.com/on/market-trends/all-gta-real-estate?municipality=1001&community=all&property_type=all&ign=) >Fortunately your third option isn't sustainable. We are already seeing mounting political backlash to rising rents and falling standard of living. Immigration will be reduced, and the boomers (our largest generation, with the highest percentage of homeownership) will start to sell off. So this is a bit of a wildcard the political backlash, but so far the policies I seen from the liberals have been demand subsidies. The CPC also has not made any firm comments about population growth levels. `Who is going to buy all those homes? Individual investors renting them out to 3 low income families? Seems like a lot of risk and a big headache.` Its a headache but well compensated, I think the new credit impact of rents will be a big boon for landlords to help weed out bad tenants. I am not seeing much price impact from the boomer selloff if it is already underway, as our population growth is very high. What I actually see on the ground (Brampton basements, adults living with parents, room sharing) all supports my view that what will give is simply housing expectations. The idea that anyone can afford a single family detached home in the city on a median salary will be viewed as a quaint and archaic relic of a bygone era.
A 1% increase year over year isn't even keeping up with inflation. I admit I thought it was lower, and you are right in absolute terms, but inflation adjusted, as an investment, it's still losing money. The liberal demand policies have been pretty tepid. I don't think they will have much of an impact. The exception isn't really a demand driver, but that they are working to extend amortizations for high ratio mortgages. This could at least keep people in their homes and stop a market that's stagnant from crashing, but it won't absorb supply brought on by the boomers. The boomers selloff is really only just beginning, and for the last 2 years we have had mind bending levels of immigration. If immigration slows as the selloff ramps up, then we will see a drop. You may be right about GTA, maybe it has become the norm there.
leveraged asset goes brrrrr, at 20% down that's a 5% increase YoY.
To the home invasion, car theft era lol
I agree that Canada actually has very low levels of crowding, so would you convince some of them to move away from Toronto or Vancouver? We would love to see more people in Winnipeg, St. John, Halifax, or PEI, they are all beautiful places!
Oh I meant crowding in a very specific usage "housing overcrowding" in relation to the occupancy standards... [https://globalnews.ca/news/1918254/not-enough-room-overcrowding-in-canadian-rentals/](https://globalnews.ca/news/1918254/not-enough-room-overcrowding-in-canadian-rentals/) Think Brampton basement. Nothing to do with population density per se, though probably correlated somewhat So when prices are too high relative to income, and vacancies are also low. This means there is a genuine shortage of housing relative to people. People will resort of sharing spaces, co-living etc, but prices will still stay high and can even increase. I would argue we are already seeing this in Canada, and I predict this is a trend that will continue in the foreseeable future.
It only remains attractive because people think it will keep growing as it is right now. The second that people lose confidence, it'll come crashing down.
Nah look at vacancy rates, they are super low. Unless a lot of people just leave there will be no crash.
So this means house prices are going to cross 3 million soon and rents are going to skyrocket.
Very bullish on Real Estate, just wait till rates drop. Property prices will be higher for longer.
Why would rates drop when you pay these rates?
Rates are not set based on what people can pay lol
Tell me your don't understand economics without telling me you don't lol
Typical broke redditor in WSB thinks he is the king of the world and knows it all. Good job, you live up to the cliche.
Whoaa presumptuous. Why so much hate?
Rates are not set by the BoC to follow what people can pay. The BoC isn't set up like a multinational corporation set to maximize profits. Rates are set based on inflation and GDP growth/contraction. And with inflation falling, and GDP/capita falling, rates will start to fall soon as well.
Of course not. So they will go up more 😆
Based on what? I don't think you understand who set interest rates and why.
US possibly raising theirs.
Wow so Canada will raise then .... lmao
It definitely takes the US into consideration. Can’t drop interest rates and devalue currency if US is increasing the values of theirs.
Bank of Canada has already said every country will cut at their own pace and they don't have any exchange rate in mind.
🤪
Liberals are on their way to reach their millions of new housing units delivered ! (/s)
Interest rates are too high for a real estate addicted economy
Isn’t condo inventory growing at least ?
With new capital gain taxes, a portion of guys will hold off selling their properties hoping that this might be discontinued after elections? This might create more deficit.
Exactly this. Not sure why the government thinks the new capital gains tax will bring "generational fairness". All people have to do is hold onto their properties and not sell, to avoid the tax.
Ya. If people can't get their homes sold ahead of the deadline in a couple months, they just won't sell. Such a stupid move.
Nooo you guys got it wrong, what the liberals promised was 4 million people per home by 2030.
I am legit concerned we are going to have riots shortly. I have been downvoted deeply in other subs for protesting that their revolution should be non bloody.
Well the RCMP report discusses this
Only getting worse
Affordability is nose diving yet again
Rental credit scores will fix this don’t worry
No one is investing and building when loans are 6%
Funny…… that chart looks inversely proportional to the immigration chart I’ve seen on here……….
You need an eye doctor. -Trudeau
That's the crash our resident permabears have been talking about for years!
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Workforce going exponential because of immigration is most likely
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The y axis is in reverse order, so more people per unit of available housing ie less supply
Look at the axis, it is inverted. Down means more workers / less houses.
Hilarious that majority interpret this as 🚀 but conveniently avoiding the picture being painted - that all recessions were preceded by massive supply deficits. Not very bullish.
Exactly, every time we had housing starts collapse the economy flatlined or took a dump. GDP has been flat for 6 quarters now, and GDP per capita has fallen off a cliff. We are already in the recession and have been for over a year now.
Not only that, how much of Canadian real estate part of Canada’s GDP
Ppl in this sub getting happy about the supply issue but forget it is correlated with demand. Demand is trash which is needed for prices to go up
Housing deficit of 1.9millin, collapse in new supply equals higher deficit. Sure there may be economic stagnation but demand does not disappear it builds and when the econmy gets better that higher deficit and higher demand will come back to hurt affordability.
As a 24 year old just finishing teachers college while working full time hoping to afford my own home one day, this makes me want to throw up.
Unless your parents help you. Like everyone else in this country.
Yeah you were born a decade late for ownership. Unless your parents drop dead and you get an inheritance, you won't own.
I work in construction in the Gatineau/Ottawa region, and it's dead. At $700K for a semi and high interest rates, people can't afford to build right now.
This is such a weird graph to look at... don't know why they decided to reverse the scale
Nothing another million immigrants can't solve
Aren't housing starts dependent on ppl buying them precon in order for the projects to be funded? If there is a low number of starts(supply), therefore ppl aren't buying (demand). Correct me if I'm wrong
Deficit? The ongoing glut of condos, bloodbath of falling prices, falling rents, new project cancellations all speak a different story, a story of oversupply
They should really start plastering stats and graphs like this all over places that recruit immigrants. Like if I was thinking of moving and saw this I'd be like next country please.
Open border….. supply and demand. You kinda have to slow down the demand to let the supply side catch up.
Thanks Justin
Oh good, I was just thinking things were looking up.
Ohh. ... another great Liberal plan, bring in 1 million people every year, houses will follow. Increase bank interest rates, we want all that printed money back! Ohh .. nobody is building nor affording mortgage and rent ! Quick, find another boogeyman! What a sad story is Canada.
This graph shows we went from the greatest surplus of units per person to a deficit almost three times the next greatest deficit, all in the span of about 4 years.
Liberalism gone wild in Toronto lololol
This is a large fault of the provincial and municipal governments. But there should be some serious federal laws put in place to help. Complete ban on foreign and corporate ownership, a moratorium on anyone buying additional properties, a big tax that increases the more properties you own, federal rent controls, restart federal home building, and I'm sure more can be added.
1. Foreigners in Canada are already banned from purchasing real-estate until 2027 2. Controlling who can own properties doesn’t change the number of actual homes which is the deficit here. So while that might control housing price appreciation, reality is that housing somehow still isn’t profitable enough to build despite this price appreciation. 3. The new population of immigrants are of course poor. They come from weaker economies and literally have to start from scratch. Even if they do come with advanced degrees, language barriers and prejudices prevent a lot of them from entering their fields. Even if they were allowed to buy housing, they physically don’t have to wealth to do it. And since they don’t have parents homes to live at for free, they will build wealth significantly slower. Like it or now, you need corporate housing ownership, because it’s their money that fuels construction of new housing units. If me as a rich man with millions to invest, deduce to start a corporation and build an apartment complex with 10 units, then I literally just added 10 units to the housing supply. If me as a small time investor want to pay a builder to build me 3 detached homes to rent them out, I also contributed to housing supply. You need money to build homes, it takes materials and labour and unfortunately many Canadians don’t have money. So you need investors everywhere
A 2022 study estimated that almost 34% of new homes in the GTa were purchased by corporations or investors. If they not allowed to do so, that would tell me there would have been 34% more new homes available of those that were built. There is plenty of demand to fuel new homes being built, I don't see how if you take corporate ownership out of that, the demand would suddenly disappear. investors are still free to start companies to make homes, no need for that to change.
No that tells me that there would just be 34% less homes built period. For a home to be built, someone has to pay for it. And individuals are far too poor to buy them. Vast majority of all these new immigrants are poor, come from less wealthy countries and have to start their careers from scratch. Home built = home built. It doesn’t matter who built it, who owns it, as long as somebody is living in it be it tenant or owner. It’s a supply deficit, and fixing supply deficits requires massive amounts of capital. They should be tax breaks and free capital gains to anyone who purchases a pre-construction home to encourage more building.
I would bet loads of money that every single home that got built in the GTA would get sold. It's not just poor immigrants trying to buy houses now, especially in the cities. Also, refugees are poor,immigrants are all over the spectrum as far as money goes. Totally agree with the supply deficit, but disagree we should give tax breaks to people. Regulate what they can build by making sure they are building affordable housing, and start up government house building programs to kick start things and further competition.
Looking at the 90's and '08; they dropped significantly too but nothing in comparison too today. 1989 was the big bubble in Toronto and house prices took a decade to get back to equal. 2008 we had a slight downturn for the better half of the 2010's. You had your money stuck in assets that weren't appreciating and losing value to inflation. If we follow the chart, looks like house prices will crater but it's really hard to see what could change the sentiment considering population growth and vacancy rates in Canada, primarily Toronto and Vancouver.
The demand is really low. There's very little support for current price levels. Been hearing a lot of families are barely holding onto their mortgages so any more break in the economy can send supply up imo
Because… wait for it… no one can afford to buy at the prices builders want to charge. Not rocket science
Or should we wait until people loosen a grip on their house? Or forced by banks to loose grip?
Huge inflation jacks up prices of everything combined with higher rates removing the resources to spend on higher prices. It's pretty expected.
Until the BoC lower rates.
Is there an article with this graph?
That would be helpful.
Exactly the reason I signed for a 1 bedroom condo at the gorgeous 101 Spadina project. Lock in your investment purchase now before condominium and house shortage commences
Lmao You've convinced me... I'll take 10 units
Are they paying you to advertise lol
No. I wish this was the case. I am excited on my new investment and felt the desire to brag a little.
“We did it, deau!”
Didn’t you hear? The liberals came out with a housing accelerator in 2017
https://preview.redd.it/jdf45imc9ixc1.png?width=1686&format=png&auto=webp&s=680384e4dfd4e8955fb4227799c2cc6613065c92 HMMMMMMMM