Great comments it will be interesting to see if Carney makes the policy changes. He has a lot of his plate. With rents dropping and rental supply going up he maybe able to let this play out a little longer. But only time will tell.
With a major change in trade with the US starting to kick in over the next couple of years we are likely looking at a lot of job losses. In turn this means that there will be pressure to reduce immigration even further. Without massive immigrationwe dont have massive demand for new housing. Our economy is about to take a major hit for the next decade and the people in the housing sector seem to have a hard time understanding the implications.
All too true! The real fundamental problem is that our entire economy relies on real estate. That is how the country was born, federated, and continues. Our der Laurentians have been gorging on the spoils. There is a huge constituency that is beholden. But the reality of having lower incomes more taxes and spiring to the same standard of living as our neighbours to the south - just does not add up to our much more expensive real estate. Something has to give.
Indigestion is tough. Housing ballooned with large scale immigration. Immigration is (hopefully) being constrained to more sustainable levels. Housing as an industry will be right sized to those sustainable levels.
When, not if, more housing "incentives" are implemented, we will be guaranteeing more of the same. More rampant real estate speculation, more imbedded unaffordability, more upzoning, more inanity. "When will they ever learn" is an age old question to which we still do not have a very good answer. But one would hope that in the midst of the existential crisis this country is facing, we would look in the mirror and make some very serious adjustments. Subsidizing the building industry aint one of those.
"From taxes and city fees to raw materials and interest rates, the growing gap between what it costs developers to build and what buyers are willing to pay is simply too large."
Willing or able to pay? As I mentioned before, if you don't provide a context, like in the distribution of annual income per houshol/person as well as unemployment rates as well as the trend in houseprice inflation over the years compared with income trends you are not telling the entire story. It is like you are writing only for the wealthy people. And btw, you won't find current statistics on the wealth of individuals in Canada. The last survey was conducted by StatsCan in 2010. They do have this site on housing, with info from the assessment rolls from the provinces, where one gets an idea of home ownership and individuals owning multiple properties (a proxy for wealth), but that's about it.
Great comments it will be interesting to see if Carney makes the policy changes. He has a lot of his plate. With rents dropping and rental supply going up he maybe able to let this play out a little longer. But only time will tell.
With a major change in trade with the US starting to kick in over the next couple of years we are likely looking at a lot of job losses. In turn this means that there will be pressure to reduce immigration even further. Without massive immigrationwe dont have massive demand for new housing. Our economy is about to take a major hit for the next decade and the people in the housing sector seem to have a hard time understanding the implications.
All too true! The real fundamental problem is that our entire economy relies on real estate. That is how the country was born, federated, and continues. Our der Laurentians have been gorging on the spoils. There is a huge constituency that is beholden. But the reality of having lower incomes more taxes and spiring to the same standard of living as our neighbours to the south - just does not add up to our much more expensive real estate. Something has to give.
Indigestion is tough. Housing ballooned with large scale immigration. Immigration is (hopefully) being constrained to more sustainable levels. Housing as an industry will be right sized to those sustainable levels.
Scary.
very!
When, not if, more housing "incentives" are implemented, we will be guaranteeing more of the same. More rampant real estate speculation, more imbedded unaffordability, more upzoning, more inanity. "When will they ever learn" is an age old question to which we still do not have a very good answer. But one would hope that in the midst of the existential crisis this country is facing, we would look in the mirror and make some very serious adjustments. Subsidizing the building industry aint one of those.
"From taxes and city fees to raw materials and interest rates, the growing gap between what it costs developers to build and what buyers are willing to pay is simply too large."
Willing or able to pay? As I mentioned before, if you don't provide a context, like in the distribution of annual income per houshol/person as well as unemployment rates as well as the trend in houseprice inflation over the years compared with income trends you are not telling the entire story. It is like you are writing only for the wealthy people. And btw, you won't find current statistics on the wealth of individuals in Canada. The last survey was conducted by StatsCan in 2010. They do have this site on housing, with info from the assessment rolls from the provinces, where one gets an idea of home ownership and individuals owning multiple properties (a proxy for wealth), but that's about it.