Half Of Canadians Willing To Take Higher Credit Cost To End Housing Madness

[gabeoz 7,915]

1 hour ago, HuffsAhoy said:

This is just one of the many reasons why my fiancé is immigrating to the States and why I'm not going up there. We can buy multiple  3 bed 2 bath houses here in NC for the price of one in some parts of Ontario

Yeah, but it's NC 

[NCgaga 4,345]

2 hours ago, Economy said:

Its ludicrus. I dont get how its possible for prices to get THIS high

 

I saw TYT post a video on a possible US housing bubble and how ppl struggle and i was so triggered cuz average US housing prices are not much more than 60% of Canadian home prices rn and thats adjusting for currency

 

Im like come to Canada and see what really expensive housing is... in the US California and NYC are the hot spots... in Canada its the whole dam Country 

Actually no- hot spots are pretty much the southeast, southwest and Texas. 

[NCgaga 4,345]

8 minutes ago, gabeoz said:

Yeah, but it's NC 

NC is one of the fastest growing and progressive southern states. CHarlotte and Raleigh are both major cities, and in the top ten fastest growing cities in the US.. You act like it’s mississipi or Alabama or something 

[HuffsAhoy 7,433]

18 minutes ago, gabeoz said:

Yeah, but it's NC 

We are the only state in South worth living in  Democratic governor, great education (even though our teacher pay sucks), one of the biggest tech industries on the east coast, great beaches, pretty mountains, and tons of craft beer

[gabeoz 7,915]

15 minutes ago, NCgaga said:

NC is one of the fastest growing and progressive southern states. CHarlotte and Raleigh are both major cities, and in the top ten fastest growing cities in the US.. You act like it’s mississipi or Alabama or something 

 

5 minutes ago, HuffsAhoy said:

We are the only state in South worth living in  Democratic governor, great education (even though our teacher pay sucks), one of the biggest tech industries on the east coast, great beaches, pretty mountains, and tons of craft beer

Please, I'm a Durham native  I love my homestate.

I grew up in Durham and lived a few years not far from Asheville in a rural sundown town  in the mountains (yes, in Madison Cawthorns district  ) before moving to Texas. I'm more than aware about how progressive and fast growing the metropolitan areas are becoming. But as someone who also experienced the rural, isolated parts of the state. Racism, homophobia and a ton of other issues still run rampant. 

Being on topic, housing prices are growing rapidly in the state's cities. My parents sold my childhood home about 5 years, and when I checked it again a few days ago out of curiosity/boredom I discovered that it has an estimated worth of over double of what they sold it for  ($500k, when they sold it for under 250k just 5 years ago)

[HuffsAhoy 7,433]

1 minute ago, gabeoz said:

But as someone who also experienced the rural, isolated parts of the state. Racism, homophobia and a ton of other issues still run rampant. 

I live in rural NC and know far too well  but I chose to move back to a rural area because of this

 

1 minute ago, gabeoz said:

 housing prices are growing rapidly in the state's cities.

[Economy 52,860]

25 minutes ago, NCgaga said:

Actually no- hot spots are pretty much the southeast, southwest and Texas. 

I thought LA, San Francisco (and California in general) and NYC were the 3 most expensive parts of US for housing

[Economy 52,860]

57 minutes ago, Fan Favorite said:

I’ve heard in other circles that the one of factors that go into skyrocketing cost of housing in California is foreign investment in the real estate here. Foreign rich elite use American real estate to play with their money, which pushes out domestic buyers. Is this also the case in Canada? 

Hard to say. There isnt detailed data on just how much real estate is owned by foreigners and experts disagree on just how strong a driver that is. Last year they finally expanded data collection to track that stuff so maybe soon we will know better

 

But either way we have a foreign buyers tax now and the hottest markets also have a vacancy tax to discourage homes from just being empty investments and encourage investors to at the very least rent it out

 

But 1 thing most experts do agree on tho... most Provinces in Canada have too much red tape for construction which makes supply lag. For example a new proposed condo building in Toronto often takes over 10 years by the time whole process is done which is not only a slow process but also raisea cost of construction. Canada ranked second worst in OECD (34 out of 35) for competitiveness in permiting and construction processes

 

Then theres very rapid population growth (were one of the fastest growing developed Nations and we accept 400,000 immigrants a year now which is over 1% of population added by immigration annually) which is a terrible combination to have with slow construction...

 

Slow construction + rapid population growth = chronic housing shortage that never ends

 

This is one reason (among others) why Canadas 21 year housing boom isnt ending up in a huge bust like what happened in the US... were not getting an oversupply from the boom and vacancies being chronically low means bidding wars never end... higher interest rates may result in prices finally cooling but an outright sharp drop or crash is extremely unlikely given the circumstances

[Economy 52,860]

1 hour ago, GagaSine said:

I have heard it very much is a factor but idk how true it is, haven't seen any data just anecdotes. I do know a shelter for youth in my hometown that had been operating for 25+ years was forced to close bc the building got sold to a chinese businessman. Very very sad. Now the downtown is overrun with people sleeping on the streets & the line ups at soup kitchens are longer than ever.

Thats because Canada never collected detailed data on it. So experts disagree how much is actually driven by that

 

We do have a forein buyers tax now tho and a vacancy tax in most major markers tho. Thats as much as we can do there tbh

 

But the bigger factor i think is that high population growth and slow construction from red tape is a bad combination that is causing a chronic housing shortage

 

I know u live in Toronto and it may seem like construction is out of control but actually its barely keeping up with demand. Toronto metro alone been growing like 125,000 people a year the fastest in North America. We are not getting a glut in supply like the US did right before their housing crash... vacancies very much remain low and supply very tight.

 

Thats the single biggest difference between Canadas housing boom and the one the US had and why our market seems more stubborn to not crash. Fundamentally supply and demand dynamics are totally different in addition to safer loan practices not to mention lower for longer interest rates... income to price ratios are now even worse than they were in the US before their crash but every other factor keeps forcing the market to stay hot 

[Economy 52,860]

1 hour ago, gabeoz said:

 

Please, I'm a Durham native  I love my homestate.

I grew up in Durham and lived a few years not far from Asheville in a rural sundown town  in the mountains (yes, in Madison Cawthorns district  ) before moving to Texas. I'm more than aware about how progressive and fast growing the metropolitan areas are becoming. But as someone who also experienced the rural, isolated parts of the state. Racism, homophobia and a ton of other issues still run rampant. 

Being on topic, housing prices are growing rapidly in the state's cities. My parents sold my childhood home about 5 years, and when I checked it again a few days ago out of curiosity/boredom I discovered that it has an estimated worth of over double of what they sold it for  ($500k, when they sold it for under 250k just 5 years ago)

Thats just under $600K in Canadian Dollars... a total dream...

 

In my city (i live in a suburb) that only gets u a really sh*tty and small townhouse

[NCgaga 4,345]

4 hours ago, Economy said:

I thought LA, San Francisco (and California in general) and NYC were the 3 most expensive parts of US for housing

By hotspots- I thought it was meant to mean “popular”. If by hotspots you mean expensive- then yes, totally right. 

[Delulu Rogers 7,664]

It’s not even worth staying in Toronto even if you had the money. I say all millennials and gen z should start going up North or to other provinces. It’s completely ridiculous that you have to be a millionaire to afford a house here. I wonder who is actually buying these houses though cause if it’s not the younger generations and the older generations are dying off or moving in with family or old age homes, who is buying? 

[PartySick 172,545]

5 hours ago, HuffsAhoy said:

We are the only state in South worth living in  Democratic governor, great education (even though our teacher pay sucks), one of the biggest tech industries on the east coast, great beaches, pretty mountains, and tons of craft beer

As someone who also lives in the American South and has been to every state on the East Coast as far up as Massachusetts as well as a few states that border those ones like Kentucky, Ohio, West Virgina, Tennessee, etc...can confirm North Carolina probably sucks the least

North West Georgia's nice though

[PartySick 172,545]

8 hours ago, Economy said:

My family can relate...

 

My boomer grandparents selling house in Toronto for over $2 million:

Me the millenial looking to start my life:

As a Floridian, I can't relate  and we're still only the 30th cheapest state to live in

Average home cost here is about $230,000 in USD  rent is anywhere from $800 to $1500 in most places. Really, Miami is the most expensive place to live here and it's still "only" $450,000 for the average home. Though idk if that's totally accurate due to all the celebrity mansions there  averaging in multi-million dollar mansions with normal homes probably drives that price waaaay up.

Just stay away from Lake City  it's the cheapest place to live for a reason

[Economy 52,860]

9 hours ago, PartySick said:

As a Floridian, I can't relate  and we're still only the 30th cheapest state to live in

Average home cost here is about $230,000 in USD  rent is anywhere from $800 to $1500 in most places. Really, Miami is the most expensive place to live here and it's still "only" $450,000 for the average home. Though idk if that's totally accurate due to all the celebrity mansions there  averaging in multi-million dollar mansions with normal homes probably drives that price waaaay up.

Just stay away from Lake City  it's the cheapest place to live for a reason

Lucky bastards