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economy

88% Of Income For Housing Now Required In Canada's Housing Crisis

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Economy

https://www.google.ca/amp/s/www.cbc.ca/amp/1.4966211

 

Canada's most expensive city Vancouver now soaks up 88% of households income for housing costs (mortgage, property taxes and utilities) while Toronto takes up 79%

 

Experts say the situation will get worse from here because even tho strict regulations have finally stopped prices from rising quickly (0.5% increase expected for 2019, below inflation) rising interest rates make mortgages even more unaffordable with prices refusing to come down as rates rise and lending standards get ever tougher

 

At the epicenter, a chronic issue with housing shortages and insufficient construction to keep up with record population growth which has led to vacancies at record lows

 

Rents in Toronto for example are expected to surge 7.7% this year after rising over 10% in 2018 as people locked out of the market are forced to rent longer, but rental vacancies are at record lows themselves

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Lady Rah Rah

And there was me thinking of living there someday...such a sad state of affairs I feel for anyone living there struggling :kara:

Stanning since '09

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Delusional Aura

So why doesn't the government spend a sh!t ton of money to i don't know expand Toronto. Can't they do what Dubai is doing, by building massive buildings, minus the slave workers? Wouldn't this stimulate growth and will eventually pay for itself? Plus a lot of investors would gladly invest in Canada especially in Toronto where demand is high. Is Toronto small is land size or sumn? 

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Economy
Just now, Lady Rah Rah said:

And there was me thinking of living there someday...such a sad state of affairs I feel for anyone living there struggling :kara:

Some economists think restrictive zoning laws and complicated process for construction permits are the cause of this...

 

They say the high prices should of encouraged more construction than we are getting and that higher costs and construction permit wait times from the system are the problem

 

Vancouver Canada's 3rd largest (and most expensive) there's limited room for construction so I get it

 

But in Toronto (2nd most expensive city) our suburbs are surrounded by very large patches of land that have been zoned green protective land and we can't expand much further so that's another strain it forces just more condos within the land the city already exists in

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Blond
5 minutes ago, Lady Rah Rah said:

And there was me thinking of living there someday...such a sad state of affairs I feel for anyone living there struggling :kara:

i guess you got lucky you didn't move yet

giphy.gif

My pu$$y tastes like pepsi cola

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Economy
4 minutes ago, Delusional Aura said:

So why doesn't the government spend a sh!t ton of money to i don't know expand Toronto. Can't they do what Dubai is doing, by building massive buildings, minus the slave workers? Wouldn't this stimulate growth and will eventually pay for itself? Plus a lot of investors would gladly invest in Canada especially in Toronto where demand is high. Is Toronto small is land size or sumn? 

Some of The suburbs of Toronto are next to protected green land where construction isn't allowed so that doesn't help

 

But as I said to the user above many complain that zoning laws and construction permit laws as complicated here and approval is expensive and takes too long

 

With prices being as high as they are construction should be even higher than it is

 

They've been trying for years to cool the market with shorter amortization periods, foreign buyers taxes, a 2% premium interest stress test for new mortgages and nothing has worked

 

I think the real answer may be to relax red tape with construction especially with immigration now at record highs

 

Issue is the federal government controls very little in that front, Provinces control zoning laws and the most populated provinces have strict laws

Edited by Economy

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Economy

@Luc I could swear one of the northern European/Scandinavian countries had a similar issue with restrictive zoning laws playing a role in lack of construction and over-the-counter real-estate....

 

I think it was either Sweden or Denmark. Is it your Nation?

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Delusional Aura
1 hour ago, Economy said:

Some of The suburbs of Toronto are next to protected green land where construction isn't allowed so that doesn't help

 

But as I said to the user above many complain that zoning laws and construction permit laws as complicated here and approval is expensive and takes too long

 

With prices being as high as they are construction should be even higher than it is

 

They've been trying for years to cool the market with shorter amortization periods, foreign buyers taxes, a 2% premium interest stress test for new mortgages and nothing has worked

 

I think the real answer may be to relax red tape with construction especially with immigration now at record highs

 

Issue is the federal government controls very little in that front, Provinces control zoning laws and the most populated provinces have strict laws

Laws were meant to be broken :huntyga:. It's sad how laws are there to 'protect' us but at times they end being the one causing more harm than good. 

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Economy
20 minutes ago, Delusional Aura said:

Laws were meant to be broken :huntyga:. It's sad how laws are there to 'protect' us but at times they end being the one causing more harm than good. 

Legislation that backfires with unintended consequences is unfortunately Extremely common

 

In the case of zoning laws, they want to plan stuff properly, they want the layouts to be efficient etc so we have better cities...

 

But in the process extreme protection and planning is also slowing down construction too much and causing a housing shortage that's making housing unaffordable to this generation

 

Our housing boom started when the USA had their housing boom and for years there was debate when we'd have our housing bust like the US and why it wasn't happening here but that sooner or later it would etc

 

New data being collected to vacancy rates and foreign buyers however now is showing it was never a speculative hype or a bubble with the same nature as the US housing bubble...

 

In our case there just isn't enough homes. So stricter lending laws, higher rates etc won't truly solve the issue. We need more housing supply plain and simple

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hausofbrice
2 hours ago, Economy said:

Canada's most expensive city Vancouver

i need to move :selena:

xoxo, brice ♡

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Diamonster

There goes my dream of wanting to live in Canada :messga: the world wants me to die in my shitty ass country I swear :messga: literally a nightmare

Edited by Diamonster

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Economy
3 minutes ago, Diamonster said:

There goes my dream of wanting to live in Vancouver :messga: the world wants me to die in my shitty ass country I swear :messga:

I think wages are higher in BC than in Ontario but still, those prices are insane

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