Economy 52,861 Posted August 10, 2019 Share Posted August 10, 2019 https://www.bnnbloomberg.ca/developers-can-t-get-enough-of-new-canada-loans-for-rentals-1.1299751 First there was an uptick in permits after rent price controls were relaxed But to further try to help the housing crisis and exorbant prices and surging rents, the Government has expanded low cost loans to developers as part of a $55 Billion National housing strategy with interest as low as 1.5% (free when adjusted for inflation) The applications for construction permits for specifically rental housing purpose tripled in the last year alone. 10% annual increases in price of rents surely contributed to developer interest 12,000 units are being funded this year by the loan tho that's still a modest part of the 210,000 housing stars for the year (including non-rental units which still make up the vast majority of market, this the rental shortage) The loans are for cheaper more affordable units only Link to post Share on other sites More sharing options...
Curunir 7,510 Posted August 10, 2019 Share Posted August 10, 2019 Is this gonna help the Toronto situation? Link to post Share on other sites More sharing options...
Economy 52,861 Posted August 10, 2019 Author Share Posted August 10, 2019 3 hours ago, Curunir said: Is this gonna help the Toronto situation? I hope so. Probably not right away tho cuz it will take time for supply to come online Home prices are flat in Canada now and in some cities falling because of the stress test that started in 2017 but in Toronto they are rising again Even Vancouver (the only city in Canada more expensive than Toronto) has prices falling But in Toronto rents are still surging and homes prices have also resumed growth. It's a nightmare for young people like me Link to post Share on other sites More sharing options...
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