Canada Homebuilders Cancelling Construction Projects Amid Inflation

[Economy 52,844]

https://www.bnnbloomberg.ca/toronto-rental-market-tightens-as-uneconomical-projects-get-scrapped-cibc-1.1795711

 

The rental market in much of Canada is set to become even tighter as increasing building costs, labor shortage/rising wages and material cost inflation are making many construction projects uneconomical and construction is getting cancelled across many housing projects 

 

Rents continue to surge at a rapid pace even as home prices started falling consistently in February 

[dollardays 4,195]

Toronto I'm devastated 

[Chromatography 10,186]

i think it’s good construction is coming to a halt, we do not need any more housing developments 

[Guest]

Canada: 8% percent a year, all hell breaks loose

My country: 6% a month, normal life

I mean, I know I shouldn't laugh but... 

[Eido 3,681]

1 hour ago, Chromatography said:

i think it’s good construction is coming to a halt, we do not need any more housing developments 

Well i mean... People needs a home

[Chromatography 10,186]

29 minutes ago, Eido said:

Well i mean... People needs a home

there’s already an excess of homes relative to number of people.

[Butters Stotch 5,379]

1 hour ago, Lukas96 said:

Canada: 8% percent a year, all hell breaks loose

My country: 6% a month, normal life

I mean, I know I shouldn't laugh but... 

THIS 

I know other can still complain even if we are having it worse, but it's just so funny 

[dit 46,738]

11 minutes ago, Chromatography said:

there’s already an excess of homes relative to number of people.

is this true? I was always made to believe there is a shortage of homes in canada (especially because Canada takes in the 2nd most amount of immigrats each year only after Australia as Canada wants to potentially increase its population to 60 million quickly).

[Economy 52,844]

1 hour ago, dit said:

is this true? I was always made to believe there is a shortage of homes in canada (especially because Canada takes in the 2nd most amount of immigrats each year only after Australia as Canada wants to potentially increase its population to 60 million quickly).

 

1 hour ago, Chromatography said:

there’s already an excess of homes relative to number of people.

Canada has like the lowest number of units per capita in the G7... Vacancy rates are low and many homes now a days have more than 1 family living in them cuz ppl can only afford mortgages if they rent out part of the home

 

In what world is a high occupancy rate and many homes having more than 1 family in them an excess of inventory???

 

Edit: @dit he maybe is referring to that argument that some who don't agree there's a shortage have been making lately to challange the shortage narrative. They are saying  that Canada doesn't need as many units as other G7 Nations because our households are larger

 

But tbh I don't think that proves anything and I think it's kind of a dumb argument they are making. A housing shortage will be default result in larger households in the first place because the prices and lack of availability force people to co-exist in larger groups as ppl have to find more room mates, stay living with parents longer, rent out part of a home to afford mortgage etc

 

Those ppl looking at size of households may be taking a side effect of a housing shortage as proof there isn't a shortage which is kind of taking effect and assuming there isn't a cause...

[Economy 52,844]

1 hour ago, Lukas96 said:

Canada: 8% percent a year, all hell breaks loose

My country: 6% a month, normal life

I mean, I know I shouldn't laugh but... 

This is more about its impact on housing (which has been a long time issue as it is) specifically not general inflation.

 

But in the topic of general inflation a developed Nations an inflation rate like that is very unusual. It's also very damaging because after decades of stable 2% to 3% inflation it's very much a standard for many companies to only adjust salaries by that much annually...

 

Many companies have not changed that standard yet even tho inflation has quadrupled

[Guest]

2 hours ago, Butters Stotch said:

THIS 

I know other can still complain even if we are having it worse, but it's just so funny 

Aren't you just waiting to know how much less our currency is going to be worth tomorrow ? I'm ecstatic 

[Butters Stotch 5,379]

1 hour ago, Lukas96 said:

Aren't you just waiting to know how much less our currency is going to be worth tomorrow ? I'm ecstatic 

I'm actually quite scared tbh  I don't want to be latino anymore, it's so tiring. The world is going to hell and all I want is Gaga to come to Buenos Aires. Imagine how tired I am!!

[YourEvilTwin 1,384]

4 hours ago, Economy said:

 

 

Edit: @dit he maybe is referring to that argument that some who don't agree there's a shortage have been making lately to challange the shortage narrative. They are saying  that Canada doesn't need as many units as other G7 Nations because our households are larger

 

 

You're far too charitable. I don't think they're saying any of those things. They're either extremely, extremely privileged and sheltered, or trolling very, very unsubtly.

[KORG 4,756]

10 hours ago, Economy said:

https://www.bnnbloomberg.ca/toronto-rental-market-tightens-as-uneconomical-projects-get-scrapped-cibc-1.1795711

 

The rental market in much of Canada is set to become even tighter as increasing building costs, labor shortage/rising wages and material cost inflation are making many construction projects uneconomical and construction is getting cancelled across many housing projects 

 

Rents continue to surge at a rapid pace even as home prices started falling consistently in February 

Its nothing to do with rising wages and never has been. If that were the case everyone's wages would've risen exponentially and nobody would be feeling the strain.

Profits soaring while wages are kept down is what's happening. Huge companies making record profits and everyone else held down to feel the manufactured pain of a global financial issue.

[Economy 52,844]

7 hours ago, KORG said:

Its nothing to do with rising wages and never has been. If that were the case everyone's wages would've risen exponentially and nobody would be feeling the strain.

Profits soaring while wages are kept down is what's happening. Huge companies making record profits and everyone else held down to feel the manufactured pain of a global financial issue.

Overall across the board in the economy yes that is whats happening. But ur generalizing the general economy and market to a specific sector which u can't always do. 

 

The construction sector has dealt with wage pressures and labor shortages in Canada for years now even before the pandemic and the now ageing retiring baby boomers has hit the trades even harder than most sectors because it's been disproportionately made up of older workers and new generations didn't go into it as heavily as past generations

 

In addition like I said building costs have surged as well from inflation in comodities and building materials like wood and steel prices

 

What ur saying simply isn't true (at least not for construction sector). They are not getting record profits at all. Many are struggling to just break even in half their projects. Hence the rising cancelled projects. As for the wage side of things wages have risen a lot in this sector in the last 10 years. So again, what ur saying about poor wage gains is false in this case too.

 

Not sure why ur taking the general Corporate World and applying it to this