Well written article with meaningful statistics. I do wonder what happens when some of the new built rentals can not carry their mortgage payments when faced when faced with increased taxes, insurance and skyrocketing maintance costs and declining rents. what is CHMC going to do with buildings it reposes?
Interesting times are upon us.
Again thanks Steve for the insightful and accurate articles.
In a functioning housing market, the median 24-35 year old couple (in Canada that means earning $50,000 per year per person) ought to be able to afford a home that is suitable for a family of 2 children.
Canada’s fertility rate is extraordinarily low. Last year Canada reached 1.25 children per woman.
Our country will slowly disappear, like Japan currently is with their 1.15 fertility rate, if housing prices remain prohibitively high for the young.
Median income in BC was $58.5k in 2024, take home is around $46k.
Average asking rents are still around $2,350 in big cities in BC. What's a one-bed in most major cities? Probably over $2k, certainly in Vancouver.
So the take-home salary is about $3,850. Less $2k in rent, leaves someone $1850 to pay for everything else.
How are folks who rent to save going to buy a home? Even a condo? Let's cheerlead rents going down but let's also not forget just how insanely high rents are. This used to be the way people saved to buy, now its a luxury to have a rental to yourself.
Housing changes are an indicator of our current woes, not a causative factor (except in the regard that our infatuation with housing CAUSED Canada and Canadians to abandon investing in real productivity and instead deified landlording).
This period of pain is coming regardless - don’t crap on people looking for a silver lining.. positivity and optimism will continue to dwindle in the face of what’s going to happen, so if the incentive of a housing market reset keeps people chugging along, so be it.
Once we bottom, will you be cheerleading for ye olde Canadian strategy of landlording again? Or will you use your platform to steer people towards investing in real productivity?
Well written article with meaningful statistics. I do wonder what happens when some of the new built rentals can not carry their mortgage payments when faced when faced with increased taxes, insurance and skyrocketing maintance costs and declining rents. what is CHMC going to do with buildings it reposes?
Interesting times are upon us.
Again thanks Steve for the insightful and accurate articles.
Housing ought to be abundant and affordable.
In a functioning housing market, the median 24-35 year old couple (in Canada that means earning $50,000 per year per person) ought to be able to afford a home that is suitable for a family of 2 children.
Canada’s fertility rate is extraordinarily low. Last year Canada reached 1.25 children per woman.
Our country will slowly disappear, like Japan currently is with their 1.15 fertility rate, if housing prices remain prohibitively high for the young.
Median income in BC was $58.5k in 2024, take home is around $46k.
Average asking rents are still around $2,350 in big cities in BC. What's a one-bed in most major cities? Probably over $2k, certainly in Vancouver.
So the take-home salary is about $3,850. Less $2k in rent, leaves someone $1850 to pay for everything else.
How are folks who rent to save going to buy a home? Even a condo? Let's cheerlead rents going down but let's also not forget just how insanely high rents are. This used to be the way people saved to buy, now its a luxury to have a rental to yourself.
Housing changes are an indicator of our current woes, not a causative factor (except in the regard that our infatuation with housing CAUSED Canada and Canadians to abandon investing in real productivity and instead deified landlording).
This period of pain is coming regardless - don’t crap on people looking for a silver lining.. positivity and optimism will continue to dwindle in the face of what’s going to happen, so if the incentive of a housing market reset keeps people chugging along, so be it.
Once we bottom, will you be cheerleading for ye olde Canadian strategy of landlording again? Or will you use your platform to steer people towards investing in real productivity?