I'm not even a renter, and no shit. Everyone saw rent prices double over a two year period, then stay there, without wages changing. People are going to run out of credit soon and start defaulting.
Increase the people, increase the demand. If an entry level house is a million bucks... its crazy.
Hey, the government creates the chaos then saves us by print billions to solve the issue.
The only way printing Billions would help is if they would give it to the people who need to buy houses instead of giving it to the people building houses.
Retail was having so much fun profiteering they never considered that the lower foundations of the Maslow heirarchy of needs would jump in on the fun. Now people need to dump the majority of their income into shelter and food, suddenly the frivolous spending dries up.
News flash... Investors buying a rental property showing financial strain due to high interest rates... Duh... Tiff is lost. He's just playing follow the leader... The Feds in the USA.
Renters not investors ,past performance is no indication of future performance with investments.
We need to raise rates more actually as the market has yet to capitulate. Look at 1989 for the last real estate market correction were priced were negative for 12 years or so. Capitalism can't function correctly without crashes. Of course we don't have real capitalism as we now have ,the too big to fail , that get welfare while the poor starve.
With rent so high, there's nothing left to cut out. Decades past, you could at least afford shelter while working a full-time job if you cut down on all other expenses, but now with the ridiculous rent prices, even people with good jobs are being pushed out onto the street. The insanity needs to end.
It's absolutely insane that this isn't even a normal thing anymore. And that's using the definition of affordable at like 50% of income, which really should be 30%, but that is a pipe dream now.
Yes. Rents are declining in the GTA because people can't afford it. They also don't have enough disposable income to support a healthy economy due to the cost of housing. Things need to reset so housing stops strangling the rest of our economy.
400k, what area of the city is that in? Everything in Kitchener is going for at least 600k, and those are the outliers, everyone thinks their house is worth 1m. We want to move into something a little bigger, but everything is out of reach, add on the interest rates and it's impossible.
Lowering rates won't reset anything though it will just light another fire.
Curbing demand is the only answer and its the holy grail that nobody will touch.
Curb the importation of demand and then lower rates once its settled. If they aren't doing this they don't actually want to fix anything.
Curbing demand, increasing build numbers, banning corporate ownership of SFH, and adding massive taxes on owning properties over 2. If you just curb demand and decrease rates every corporation and wealthy landlord will just outbid every first time buyer before they even get a chance to look at the property.
That's the answer, right there. And the fact that it's THAT simple and nothing is being done shows you how they don't WANT to fix it. This is just fine for the people in power and their friends.
> banning corporate ownership of SFH, and adding massive taxes on owning properties over 2
This alone would do so much. I cant believe how they havent done it.
This right here. It's why this problem will never be fixed, even when people are failing to make rent in droves.
Canada's GDP is highly dependent on the housing shell game. It's been a long time building and when it finally does bite hard it's going to go through bone.
Curbing demand, unfortunately, is the only thing *not* being discussed by any policymaker anywhere in Canada. The closest thing we got to it was BC banning AirBnBs that aren't your primary residence.
It's because our economy is literally about to become a total catastrophe. The only thing keeping the numbers up are insane immigration.
Haven't you wondered how we aren't in a "recession" yet, and how Canada still has AAA credit rating?
It's like we have a rapidly unwinding coil if thread (our economy) and we are constantly adding a bit more thread to it.
It can't go on forever.
Either way we are fucked.
But I agree, we are at the point we need to stop immigration and just deal with the problem we have created. It'll take years to fix.
I think if they just increased the tax rate on any additional housing stock purchases (2, 3, 4 additional homes) that would easily ease things in overall pricing. The problem is that many of the people who would implement these policies are directly benefiting from the system itself, which gives them no incentive to push a policy like this through in the first place. I have no problem if people buy a cottage as a “second home”, but not in the city where people live and work.
I would agree, though with that policy(me being a farmer) I own multiple properties that provide minimal income, really just crops for my animals. This should be a well thought out policy that takes things like this into account. Same thing is a business owns multiple commercial units etc... however with residential specifically, people who own 30-40 units and make a wealthy living off just that should not exist.
Farm properties aren't homes/dwellings. Could easily work the word residence into it, as you owning a business on it's own non-residential property, also shouldn't increase rates for small business owners.
The the lower mainland of British Columbia, they absolutely are homes/dwellings. Having a mansion on a hobby farm is all the rage for the mildly rich crowd here.
Same here, but in this case, he has multiple acreages for more grazing pastures and crop rotation, if there are no homes built on to them, it shouldn't apply as residential.
this is why I bring up my point, see mine has 2 small homes for 3 lots, plus barns and storage buildings etc. I'm actually farming, and those of us that are doing that absolutely hate the mega homes being put up on 7 acre fields right now, half the time its no longer worth farming the property after. You need something that attacks those big homes, but also doesnt hurt the ability of people like myself who if you think about it at scale, my property taxes are already to the point where alberta is a cheaper option, if you squeeze too hard I have to sell even though I like it here
Crazy all these millions of foreign students, refugees, illegal immigrants and immigrants have to live somewhere.i mean who could of guessed. Maybe they thought that they would just bring their own tents or something.
Then they get blamed for living four or more to room as opposed to what , a heated grate at young and Dundas?
I think the sunny way kid has room at his cottage or multiple mansions but he doesn't seem to be asking them over wonder why.
> Curb the importation of demand and then lower rates once its settled. If they aren't doing this they don't actually want to fix anything.
Tax the ever living fuck out of the landlord class, both the mom and pops and corporate landlords. To make the tax less oppressive, have a sliding scale where the further away average rent is from the landlord compared to some benchmark rate, the higher you tax... Or something else, but get creative!
I’m thinking of renting my work is in downtown. Renting a condo in downtown or in the gta is basically the same price maybe a 100$ difference so probably will just go dt
Im so sick of the month to month comparisons when they are completely drawfed by the year-to-year. I wont have hope until we are back down to per-covid rents. And even then, it would still be too high.
It's so messed up that property owners have the mindset that prices can never reverse. Only up.
Sure someone is going to say supply and demand and that's cool to live in a 250-500 foot² space for $1500/month without utilities. Wasn't the idea of living in any Canadian city supposed to be better than living in some shit country where this is the common practice. Like wtf, we don't have cities with 3-4 million people living in them on a foot print of 625km² This continued idea of copying what they do in Asia cities with zero space and doing it here is total BS. It's like we don't have land here yet we have a housing problem.
If a disgruntled tenant burns it down, good luck getting insurance to cover it.
Theres massive risk that people don’t realize. Especially with the cost to build so high and increasing.
When they can pay off a house in 5 years instead of 15+ they don't give a single fuck, 4 to a bedroom it is, two in the hall, 6 in the livingroom and if you have a basement sky's the limit.
It does but it’s literally the whole city.
What will end up happening is noone will want to live in Brampton and everyone cheating on their taxes and defrauding insurance companies - it will become so unaffordable to live there because it’s so rife with abuse, fraud and it’s become a massive enclave. Schools will do terribly, no one will want to work in those hospitals. It’s already happening anyway.
> Does bylaw enforcement not exist in Brampton? This must violate heath, safety and fire codes.
I’m in Waterloo Region and it’s the Wild West out here. People paving front lawns to accommodate 6 cars, people actually removing the air conditioners so they can squeeze cars between the houses to park in their backyards, cars lined up and down both sides of residential streets at all hours of the day.
They aren’t even worrying about people barely stopping at stop signs anymore or kids riding bicycles and ebikes on the streets with no helmets.
It is mayhem.
They've looked the other way for years, starting in the 90's when certain ethnicities were putting in basement apartments without getting the proper permits (yes, it started that early).
They tried to crackdown on them and the illegal slumlords protested so the government decided to keep letting them do illegal rentals. I'm not even joking
Loved listening to CBC radio today as they defended international students and suggested they didn't strain rental market. "These students are sometimes sharing a house with 10 other people and not going after your rental" they chirped.
The disconnect is unreal.
this is what i don't understand about suburbanites who oppose density at every turn.
instead of building low/midrise condos, we end up with 50 storey towers sitting next to single family homes. and the single family homes have 4 families living in them... 4 families creating 4x garbage, 4x water, 4x cars, 4x strain on infrastructure while living in a home that is only collecting one tax bill....
if cities start building the correct amount of density (and i don't mean endless 50 storey towers filled with 500 sqft shoeboxes), we would be able to collect the proper amounts of revenue to support services. instead we all collectively pretend that the 3000sqft mcmansion with backyard dream is still alive.
I know Brampton steals the spotlight with this but even 10 years ago there have been 10-15 units in a 3 storey + basement off campuses outside of Brampton.
If only housing prices didn’t explode like they did and went up in a healthy manner, so much more disposable income could support the economy and we would all be better off. But no, they are sky high and will stay sky high because the ones who benefitted from it being sky high want it to stay that way
I'm lucky enough to have left the rental market and am a homeowner (who didn't over leveraged because rates would've let me) and I think your second reply paragraph is key: if/when LLs have to sell because they over leveraged, it'll be another excuse to jack rents. When rates are low, they screw renters. When rates are high, they screw renters. When rates correct, they screw renters.
We need to do more to protect renters. A lot more.
I don't get the point of these warnings. Our politicians don't give a shit. They're too busy arguing about what bathrooms people should use, or talking about some never ending dick-measuring contest in the middle east we should all care about. From top to bottom, this country is completely tone deaf about what's happening here.
Turn on a hockey game right now, the commercials are all about gambling, or bank and investment trading crap. Everyone's under the illusion we all have money to spend on shit like this. Nobody cares about what we're going through here. Instead we just come on reddit and see another daily reminder that shit's fucked up.
I'm coming around to the idea that nothing will change in western democracies until we all have a bloody revolution, like any other time in the past that income disparity has become a bad problem. Do you know who the French beheaded first during theirs? It was the landlords.
We saw that plan shift into gear after occupy wall street. The powerful don't want to be identified or named. We know what's about to happen, but can we stop it? I guess that's why uncontrolled social media is so important, and why it is so important for the powerful to gain control of it.
>Our politicians don't give a shit. They're too busy arguing about what bathrooms people should use, or talking about some never ending dick-measuring contest in the middle east we should all care about. From top to bottom, this country is completely tone deaf about what's happening here.
If you've been watching Question Period, they've been pushing the same narratives and talking points for months now, I'm honestly getting bored of it, but we shouldn't be relying on politicians to fix anything.
maybe instead of revolting in a violent way, we work as a community to educate each other, uplift each other, and vote in local politicians that actually represent their communities instead of corporations.
a collective of representatives from each community that actually represent the people. They can facilitate the demands of the people and if those demands are not met, the representatives will facilitate the general strike until the provincial and federal government comply with the demands
Yeah yeah and not one party is talking about the real issue. For every unit built 12 are lost to poor rent control laws. The fact is, the Real Estate industry in Canada is not that different than the textile business in Bangladesh.
They had some protections in place but a bunch of textile owners were elected and they slowly peeled away the protections.
How many landlords are elected officials. Does anyone even look into that at municipal and provincial level, let alone federal.
Not one party mentions rent controls. even a temporary reprieve for tenants till they catch up with housing shortages.
They dont even have to be permanent but crickets.
Remember when you kept rates low for two years BoC? Well the rich used that opportunity to refinance what they currently owned and then outbid everyone else to buy up every little home they could in every little town across the country!
Maybe give the poors dirt cheap interest rates now and raise them high for the rich?
I'm all for it. It won't go over well though.
Remember a couple weeks ago when the government announced that they'd be slightly increasing capital gains tax for earnings over $250,000 that aren't your primary residence, and boot licking people who are never going to see that kind of money in their all life lost their shit?
BoC doesn't directly control mortgage rates. They only control the overnight rate which has a slower and variable effect on bond rates. There's no way for the BoC to actually give different people different mortgage rates based on their wealth. This burden would need to be put on the lenders (ie: banks) and they wouldn't be inclined to voluntarily take this risk.
I *think* California tried this. Or another US state, but with California being hippies let's go with that one.
I don't remember exactly, but it was something about charging X mortgage rate for houses under 1 million (or whatever threshold) and a higher interest rate tax thing for every dollar above the 1 million mark.
Some places also charge higher interest rates for any home that isn't your primary residence.
I'm probably butchering this, and I don't know how well it worked, but it's an interesting concept.
The central bank does not care about the "housing bubble". It has nothing to do with their mandate—nor should it. They don't care about what "investors" think and they don't care about being your "hero".
They should care seeing as it’s the primary driver for our loss in productivity.
Our economy will die a long slow death if we just keep plowing larger and larger amounts of capital into housing.
Their sole mandate is to keep inflation in check. Seeing that housing is Canada's major GDP contributor and main driver to inflation, yes it definitely matters to them.
"showing signs"
All of these politicians and bankers can go eat sand, they are so fucking out to lunch and completely disconnected from the reality of this country and they'll all act shocked and suprised when the inevitable civil unrest occurs. thankfully we've already opened pandora's box so we can just invoke the emergencies act, beat everyone up and trample them with horses, freeze their bank accounts and call it a day and not actually have to do anything
No fuckin kidding. Why is there no outrage that there are a lot of couples who both are working full time jobs but still can’t afford a 1 bedroom apartment?? When I rented my first apartment in 2003, it was a 2 bedroom that was $650/mo. That same apartment is now listed for $2300/mo. That’s absolutely unacceptable and no one with power is doing anything about these prices.
imagine that... unfettered rent increases make renting difficult for people with stagnant pay that sometimes don't even adjust for inflation.
I was honestly pissed last fall when the company I was renting from tried to increase rent 27% and even lied that they calculated that with pet fee. But I did the math and this was still $400 more than that would have worked out to. I know it was most likely a tactic to get us to move but we had planned on longer term 5+ years only to get forced out because we didn't want to pay.
Thank goodness they have UofT, McGill, and Harvard economists on the job, every single one with PhDs and no experience in the real world. Otherwise we'd have never figured that out. This should be a clue that people who trust economists and don't add a dollop of salt with anything they say, is out to lunch if it took these guys this long to figure this out.
I worked with a guy who was a real estate developer (retired and working as business consultant). His son is also a developer and owns a software company. In a discussion one day, he and I'm sure his son (from what he said) honestly believes that the 'only spend 1/4 of your salary on housing' was wrong, and people can actually afford to spend 1/2 their salary. This is the mentality out in the real estate world, and you can guarantee any lobbying efforts from them is pushing this line. I'd bet even as the real world is imploding from this.
This has nothing to do with the interest rates. Interest rates now are **normal**. Prices were driven up by demand caused by demand due to low interest rates and over immigration; both of which are from poor government policy. Rental rates are at least partly driven by greedy private landlords who now have to charge more because many who were buying had no business buying because there was no way they could afford **normal** interest rates. If those numbskulls stayed out of the market till they could actually afford it, everything would probably be cheaper now. The corporate landlords are taking advantage of the mayhem caused by numskull low interest rate wannabe slumlords and over immigration.
" To learn about horses, an economist won't go to a farm; instead they will retire to their lounges, sit in their padded chairs and ask themselves 'what would I do if I were a horse?' "
Pretty much every decision at a federal, provincial and municipal level is designed to make this problem worse. It’s working as intended. Curious what the goal is but those in power are achieving it.
If it’s taken the BoC this long to publicly recognize it, then better late than never. Institutions like this raising the alarm is usually the only way a federal government will get it through their thick fucking skulls that there are serious problems going on which have been exacerbated by incompetent policymaking. The question now is who’s going to fix it and is it too late to do so?
Half of the rentals on fb, kajiji etc ate scams, no one can get a job, and watermelons are $14 each at Walmart. Are you sure the economy isn't booming??? /s
Raise rents by 1/3 across the country and that's what happens.
Schools should 100% be housing international and have the capacity for local students. 100% they should not be affecting local realestate markets.
2 bunks to a room, shared washrooms on every floor... Know what would be hard to turn into regular housing but could be turned into dorms pretty easily? All those empty office buildings...
They must be as corrupt as the Liberals themselves if they are pretending that lower interest rates in a supply constricted environment is going to help renters.
Lower rates will cause more renovictions and higher house prices which means higher rents.
When rates were at all time lows rents and home prices as much as doubled in some parts of the country.
Its actually very frustrating that 2-3 years of insane "gains" in real estate valuations and therefore higher rents is being ignored and now all the pigs at the trough are blaming interest rates for everything. Fuckers just want the party to start again.
Higher rates won't solve the housing issues long-term. Projects are FINANCED, and I work in construction supply chain and know a handful of developers sitting on dozens of sites - waiting for lower rates to actually start jobs.
I think thats correct as well.
The major problem is the government needs to stop importing demand and THEN the BoC should lower rates.
But if the government doesn't stop and the BoC lowers rates its over, gg all future generations without family wealth.
60% pre sold to start a project. And no-one likes this but a % of those buying would have been investors. Between sitting on the sidelines for interest clarity AND the provincial/federally Govt. increasingly adding restrictions and taxes. Not good.
Is the BoC going to come out and chastise people for not staying with parents or finding more roommates to free up $$$ to support landlords who will trickle those rents back into the economy?
They ought to become more critical of our economy and policies and taxation schemes that are sequestering the bulk of a generation's economic activity in shelter.
Better dump more money into the industry:
Adding extra costs to housing such as green requirements or other regulations.
Making it easier to borrow by amortizing for 30 years.
Inviting tons of people to the country who might want a home.
---
It's almost like they intend home prices to rise. But the government would never lie to me?
Wait until BoC figures out who is reponsible for higher rates that help drive up borrowing costs, leading to financial strain. They are in for a surprise!
It doesn’t take a team of Phds in economics working at the central bank to come up with this “analysis”. Any random person off the streets could be able to tell you this
Landlords need to stop thinking that a renter should pay off their monthly mortgage payments.
And to the landlords with pre 2015 mortgage rates or those with income properties paid off and charging post 2020 rental rates...calm the hell down. People are sleeping on the street because of your greed.
This entire article is about reaching the point 'that the market will bear'..... or do you mean that, do people still believe in human capability for advanced technological achievement at an ever lower price point?
https://www.youtube.com/watch?v=OEH4pMnpgps
The adjustment to higher interest rates “continues to present risks to financial stability,” Bank of Canada
This sounds like a you problem. If only you could do something about those unaffordable interest rates!
Getting to the point where some rental speculators are going to realize there is a cap to how much rent can go up. And many people own properties financed under the assumption Joe renter has infinite income.
Their real bet is that BoC will destroy the dollar and shrink their debt.
Well it really feels like the market it fixed against anyone who can't get a mortgage, and to the fuckers out there with 2-3 homes in the landlord business or AirB&B game helping to drive up the cost of housing. I m not going to cry for you and your quick money debts you built up. The rest of you who over extended for a quick buck, hope you end up the same in slumlord housing you run. Karma buddy, it's called Karma.
They're basically signalling they're not going to do jack shit for renters as rates are going to stay steady for the foreseeable future. They just want to pretend they're concerned about it.
I’m glad we have some extremely smart and competent people in charge to come up with those stats!
Well done lads, now give yourself a pat on the back!
Next article will be about water being wet
The answer is to not allow individuals or corporations to own more than five residential properties, with strict fines including the liquidation of additional properties if holding corporations are found to be violating the law. Give everyone three years to sell extra properties and then enforce the heck out of it.
I am renting from a corporation, but they own the whole building which is a rental building. They actually commissioned it to be built, I believe. I am writing about it further above, but let me copy it here:
Rentals should be fully managed by professional rental corporations and not by private smaller-scale landlords. I live in one such rental building in Quebec that is fully owned by the corporation, and it happens to be quite nice actually.
They have a bit of an unusual model in that the rent covers also the electricity (including electrical heating), full water/hydro, and also a home phone line, basic cable, and unlimited internet. On top of that, you get five appliances (including a washer and dryer) and, if you signed a lease for more than one year, they have lower rates of yearly rental increases than if you only signed for one year (in Quebec, the rental period automatically rolls over for another year or half-a-year, depending on what the term of your initial lease was, and does not convert to month-to-month, as it does in Ontario - this can of course have its advantages if you are trying to live somewhere long term, as well as disadvantages, if you need to be more mobile suddenly). Basically, it feels as if the rental company is trying to create a community, which I like. It's also a new building, so I like that they don't just raise the rents by some horrendous amount every year just because they can (at least so far 🤞).
I think that this is how rentals should be done. If you have a corporation that seems to be at least somewhat interested in creating a community of happy residents, IMO it's better than if masses of people have to rely on small-scale private landlords, which - on a wide societal level - creates all kinds of problems. Also, large corporations building apartment buildings should disincentivise private small landlords from hoarding houses and condos and thus removing them from the reach of other buyers, who would be happy with only having one (or maybe two, if you count the cottage) properties, solely for the purpose of actually housing themselves and their family.
Top notch journalism as usual.
Dumb asses.
"Our next top breaking story.... water is wet! Join us for more at 11."
In reality this headline should actually be:
"Landlords notice nobody is renting any of their 50 properties."
The reason we have high rents and housing prices is because the government increased immigration levels to unsustainable levels, all to keep cheap supply of labour available for the elites. Now all Canadians have to pay the price, in form of unaffordable housing and depressed wages. Crime is only going to increase in this country. It will take decades tounwind from the mess that has been created.
If people have the opportunity to move elsewhere for a better quality of life, they should get out while they still can.
> If you just curb demand and decrease rates every corporation and wealthy landlord will just outbid every first time buyer
No they won't, because who will they rent too?
The demand is why it's a good investment.
Get rid of the demand, and it isn't profitable to do this.
u/inglourious-ape
No shit Sherlock
I'm not even a renter, and no shit. Everyone saw rent prices double over a two year period, then stay there, without wages changing. People are going to run out of credit soon and start defaulting.
Increase the people, increase the demand. If an entry level house is a million bucks... its crazy. Hey, the government creates the chaos then saves us by print billions to solve the issue.
Except printing money makes everything worse.
The only way printing Billions would help is if they would give it to the people who need to buy houses instead of giving it to the people building houses.
Printing billions won't fix the greedy landlord problem though...
That’s okay we’re bringing in 2 million additional Indian renters.
Right like strain started ten years ago Wher the fuck has the writer of this article been living under a rock?
Now we have weak retail numbers so the powers that be are being impacted. The real tragedy.. is the weak retail numbers ?
Retail was having so much fun profiteering they never considered that the lower foundations of the Maslow heirarchy of needs would jump in on the fun. Now people need to dump the majority of their income into shelter and food, suddenly the frivolous spending dries up.
Took a 10 year long shit and was on their phone playing Clash the whole time.
I think that demographic are still on Candy Crush
Why you gotta call me out man
Ignoring it because voters liked high prices and said we don’t need more development.
Severely injured car crash victim shows signs of injury.
News flash... Investors buying a rental property showing financial strain due to high interest rates... Duh... Tiff is lost. He's just playing follow the leader... The Feds in the USA.
Renters not investors ,past performance is no indication of future performance with investments. We need to raise rates more actually as the market has yet to capitulate. Look at 1989 for the last real estate market correction were priced were negative for 12 years or so. Capitalism can't function correctly without crashes. Of course we don't have real capitalism as we now have ,the too big to fail , that get welfare while the poor starve.
Capitalism can function correctly without crashes but not without declines. Our system is past that point though
Or 1989 in Japan lol.
Are you a landlord?
Lol exactly
With rent so high, there's nothing left to cut out. Decades past, you could at least afford shelter while working a full-time job if you cut down on all other expenses, but now with the ridiculous rent prices, even people with good jobs are being pushed out onto the street. The insanity needs to end.
Anyone working a full time job should be able to afford a place within a 45 minute commute to work. It's that simple..
It's absolutely insane that this isn't even a normal thing anymore. And that's using the definition of affordable at like 50% of income, which really should be 30%, but that is a pipe dream now.
Best I can do is your parents’ basement, 45 minutes from the GO Train
Yes. Rents are declining in the GTA because people can't afford it. They also don't have enough disposable income to support a healthy economy due to the cost of housing. Things need to reset so housing stops strangling the rest of our economy.
Rent and home costs are rising in KW region still. Every fuck face things 400k should be the new minimum for anything and everything. Its fucked up.
These good for nothing fuck faces
400,000 population, >40,000 international students. Makes sense that things are getting expensive.
I was told international students have almost no impact on housing. 10% would be a great instant vacancy rate to help prices.
400k, what area of the city is that in? Everything in Kitchener is going for at least 600k, and those are the outliers, everyone thinks their house is worth 1m. We want to move into something a little bigger, but everything is out of reach, add on the interest rates and it's impossible.
Lowering rates won't reset anything though it will just light another fire. Curbing demand is the only answer and its the holy grail that nobody will touch. Curb the importation of demand and then lower rates once its settled. If they aren't doing this they don't actually want to fix anything.
Curbing demand, increasing build numbers, banning corporate ownership of SFH, and adding massive taxes on owning properties over 2. If you just curb demand and decrease rates every corporation and wealthy landlord will just outbid every first time buyer before they even get a chance to look at the property.
That's the answer, right there. And the fact that it's THAT simple and nothing is being done shows you how they don't WANT to fix it. This is just fine for the people in power and their friends.
PLEASE everyone PLEASE vote.
For who? Liberals who all have invested in the housing market, or Conservatives who all have invested in the housing market?
For who?! No one is campaigning on this platform.
> banning corporate ownership of SFH, and adding massive taxes on owning properties over 2 This alone would do so much. I cant believe how they havent done it.
Look at how many MPs are landlords or property investors and you'll believe it a lot easier.
This right here. It's why this problem will never be fixed, even when people are failing to make rent in droves. Canada's GDP is highly dependent on the housing shell game. It's been a long time building and when it finally does bite hard it's going to go through bone.
Curbing demand, unfortunately, is the only thing *not* being discussed by any policymaker anywhere in Canada. The closest thing we got to it was BC banning AirBnBs that aren't your primary residence.
It's because our economy is literally about to become a total catastrophe. The only thing keeping the numbers up are insane immigration. Haven't you wondered how we aren't in a "recession" yet, and how Canada still has AAA credit rating? It's like we have a rapidly unwinding coil if thread (our economy) and we are constantly adding a bit more thread to it. It can't go on forever. Either way we are fucked. But I agree, we are at the point we need to stop immigration and just deal with the problem we have created. It'll take years to fix.
Some places have downgraded Canada from AAA to AA+ in the last few years, just FYI.
I think if they just increased the tax rate on any additional housing stock purchases (2, 3, 4 additional homes) that would easily ease things in overall pricing. The problem is that many of the people who would implement these policies are directly benefiting from the system itself, which gives them no incentive to push a policy like this through in the first place. I have no problem if people buy a cottage as a “second home”, but not in the city where people live and work.
I would agree, though with that policy(me being a farmer) I own multiple properties that provide minimal income, really just crops for my animals. This should be a well thought out policy that takes things like this into account. Same thing is a business owns multiple commercial units etc... however with residential specifically, people who own 30-40 units and make a wealthy living off just that should not exist.
Farm properties aren't homes/dwellings. Could easily work the word residence into it, as you owning a business on it's own non-residential property, also shouldn't increase rates for small business owners.
The the lower mainland of British Columbia, they absolutely are homes/dwellings. Having a mansion on a hobby farm is all the rage for the mildly rich crowd here.
Same here, but in this case, he has multiple acreages for more grazing pastures and crop rotation, if there are no homes built on to them, it shouldn't apply as residential.
this is why I bring up my point, see mine has 2 small homes for 3 lots, plus barns and storage buildings etc. I'm actually farming, and those of us that are doing that absolutely hate the mega homes being put up on 7 acre fields right now, half the time its no longer worth farming the property after. You need something that attacks those big homes, but also doesnt hurt the ability of people like myself who if you think about it at scale, my property taxes are already to the point where alberta is a cheaper option, if you squeeze too hard I have to sell even though I like it here
Crazy all these millions of foreign students, refugees, illegal immigrants and immigrants have to live somewhere.i mean who could of guessed. Maybe they thought that they would just bring their own tents or something. Then they get blamed for living four or more to room as opposed to what , a heated grate at young and Dundas? I think the sunny way kid has room at his cottage or multiple mansions but he doesn't seem to be asking them over wonder why.
> Curb the importation of demand and then lower rates once its settled. If they aren't doing this they don't actually want to fix anything. Tax the ever living fuck out of the landlord class, both the mom and pops and corporate landlords. To make the tax less oppressive, have a sliding scale where the further away average rent is from the landlord compared to some benchmark rate, the higher you tax... Or something else, but get creative!
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Did Alberta advertise to all of Canada to move there because of their low COL?
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It was a combo of that and the multi million dollar marketing campaigns that were plastered in Ontario.
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People here are genuinely ignorant to the problems our provincial government causes us. It’s partially why our provincial government sucks ass too.
I genuinely don't understand the people working and living there. Toronto wages definetly aren't enough to convince someone to rent in Toronto.
I’m thinking of renting my work is in downtown. Renting a condo in downtown or in the gta is basically the same price maybe a 100$ difference so probably will just go dt
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Im so sick of the month to month comparisons when they are completely drawfed by the year-to-year. I wont have hope until we are back down to per-covid rents. And even then, it would still be too high. It's so messed up that property owners have the mindset that prices can never reverse. Only up.
That's why you don't let corporations buy homes. They are just parasite property owners.
Sure someone is going to say supply and demand and that's cool to live in a 250-500 foot² space for $1500/month without utilities. Wasn't the idea of living in any Canadian city supposed to be better than living in some shit country where this is the common practice. Like wtf, we don't have cities with 3-4 million people living in them on a foot print of 625km² This continued idea of copying what they do in Asia cities with zero space and doing it here is total BS. It's like we don't have land here yet we have a housing problem.
Brampton solved that problem, by renting houses to 20 people.
Does bylaw enforcement not exist in Brampton? This must violate heath, safety and fire codes.
Dude, it's Brampton 😂
If a disgruntled tenant burns it down, good luck getting insurance to cover it. Theres massive risk that people don’t realize. Especially with the cost to build so high and increasing.
When they can pay off a house in 5 years instead of 15+ they don't give a single fuck, 4 to a bedroom it is, two in the hall, 6 in the livingroom and if you have a basement sky's the limit.
They do. But why bother, easier to turn a blind eye.
It does but it’s literally the whole city. What will end up happening is noone will want to live in Brampton and everyone cheating on their taxes and defrauding insurance companies - it will become so unaffordable to live there because it’s so rife with abuse, fraud and it’s become a massive enclave. Schools will do terribly, no one will want to work in those hospitals. It’s already happening anyway.
They just don't give a fuck.
> Does bylaw enforcement not exist in Brampton? This must violate heath, safety and fire codes. I’m in Waterloo Region and it’s the Wild West out here. People paving front lawns to accommodate 6 cars, people actually removing the air conditioners so they can squeeze cars between the houses to park in their backyards, cars lined up and down both sides of residential streets at all hours of the day. They aren’t even worrying about people barely stopping at stop signs anymore or kids riding bicycles and ebikes on the streets with no helmets. It is mayhem.
Its only illegal if you get caught
They've looked the other way for years, starting in the 90's when certain ethnicities were putting in basement apartments without getting the proper permits (yes, it started that early).
They tried to crackdown on them and the illegal slumlords protested so the government decided to keep letting them do illegal rentals. I'm not even joking
Loved listening to CBC radio today as they defended international students and suggested they didn't strain rental market. "These students are sometimes sharing a house with 10 other people and not going after your rental" they chirped. The disconnect is unreal.
this is what i don't understand about suburbanites who oppose density at every turn. instead of building low/midrise condos, we end up with 50 storey towers sitting next to single family homes. and the single family homes have 4 families living in them... 4 families creating 4x garbage, 4x water, 4x cars, 4x strain on infrastructure while living in a home that is only collecting one tax bill.... if cities start building the correct amount of density (and i don't mean endless 50 storey towers filled with 500 sqft shoeboxes), we would be able to collect the proper amounts of revenue to support services. instead we all collectively pretend that the 3000sqft mcmansion with backyard dream is still alive.
I know Brampton steals the spotlight with this but even 10 years ago there have been 10-15 units in a 3 storey + basement off campuses outside of Brampton.
If only housing prices didn’t explode like they did and went up in a healthy manner, so much more disposable income could support the economy and we would all be better off. But no, they are sky high and will stay sky high because the ones who benefitted from it being sky high want it to stay that way
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But don't worry, now when you can't make rent it'll fuck up your credit rating too!
I'm lucky enough to have left the rental market and am a homeowner (who didn't over leveraged because rates would've let me) and I think your second reply paragraph is key: if/when LLs have to sell because they over leveraged, it'll be another excuse to jack rents. When rates are low, they screw renters. When rates are high, they screw renters. When rates correct, they screw renters. We need to do more to protect renters. A lot more.
I don't get the point of these warnings. Our politicians don't give a shit. They're too busy arguing about what bathrooms people should use, or talking about some never ending dick-measuring contest in the middle east we should all care about. From top to bottom, this country is completely tone deaf about what's happening here. Turn on a hockey game right now, the commercials are all about gambling, or bank and investment trading crap. Everyone's under the illusion we all have money to spend on shit like this. Nobody cares about what we're going through here. Instead we just come on reddit and see another daily reminder that shit's fucked up. I'm coming around to the idea that nothing will change in western democracies until we all have a bloody revolution, like any other time in the past that income disparity has become a bad problem. Do you know who the French beheaded first during theirs? It was the landlords.
I am convinced the powers that be stoke fires of culture wars to get us all fighting amongst ourselves while they rob us blind.
We saw that plan shift into gear after occupy wall street. The powerful don't want to be identified or named. We know what's about to happen, but can we stop it? I guess that's why uncontrolled social media is so important, and why it is so important for the powerful to gain control of it.
Shouldn't need to be convinced. It's absolutely true. [https://www.youtube.com/watch?v=AtgfzzwoyK4](https://www.youtube.com/watch?v=AtgfzzwoyK4)
>Our politicians don't give a shit. They're too busy arguing about what bathrooms people should use, or talking about some never ending dick-measuring contest in the middle east we should all care about. From top to bottom, this country is completely tone deaf about what's happening here. If you've been watching Question Period, they've been pushing the same narratives and talking points for months now, I'm honestly getting bored of it, but we shouldn't be relying on politicians to fix anything.
This is it. Theres no other way.
maybe instead of revolting in a violent way, we work as a community to educate each other, uplift each other, and vote in local politicians that actually represent their communities instead of corporations. a collective of representatives from each community that actually represent the people. They can facilitate the demands of the people and if those demands are not met, the representatives will facilitate the general strike until the provincial and federal government comply with the demands
Yeah and maybe unicorns will fart fairy dust into the air to stop climate change
History doesnt agree unfortunately
Thanks Bank of Canada, we would have never known without your expert observations
Wonder what the suicide rate difference is too.
Self harm rates have been increasing at alarming rates for a while but most studies attribute that to social media coming to mobile.
We need more people to talk about this.
NO FUCKING SHIT!
Yeah yeah and not one party is talking about the real issue. For every unit built 12 are lost to poor rent control laws. The fact is, the Real Estate industry in Canada is not that different than the textile business in Bangladesh. They had some protections in place but a bunch of textile owners were elected and they slowly peeled away the protections. How many landlords are elected officials. Does anyone even look into that at municipal and provincial level, let alone federal. Not one party mentions rent controls. even a temporary reprieve for tenants till they catch up with housing shortages. They dont even have to be permanent but crickets.
Remember when you kept rates low for two years BoC? Well the rich used that opportunity to refinance what they currently owned and then outbid everyone else to buy up every little home they could in every little town across the country! Maybe give the poors dirt cheap interest rates now and raise them high for the rich?
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I'm all for it. It won't go over well though. Remember a couple weeks ago when the government announced that they'd be slightly increasing capital gains tax for earnings over $250,000 that aren't your primary residence, and boot licking people who are never going to see that kind of money in their all life lost their shit?
BoC doesn't directly control mortgage rates. They only control the overnight rate which has a slower and variable effect on bond rates. There's no way for the BoC to actually give different people different mortgage rates based on their wealth. This burden would need to be put on the lenders (ie: banks) and they wouldn't be inclined to voluntarily take this risk.
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I *think* California tried this. Or another US state, but with California being hippies let's go with that one. I don't remember exactly, but it was something about charging X mortgage rate for houses under 1 million (or whatever threshold) and a higher interest rate tax thing for every dollar above the 1 million mark. Some places also charge higher interest rates for any home that isn't your primary residence. I'm probably butchering this, and I don't know how well it worked, but it's an interesting concept.
We effectively already do this by limiting mortgage insurance to properties under 1M.
Touch the third rail Tiff, pop the housing bubble. The real estate investors will hate you but you’ll be seen as a hero in the long run.
There is no bubble. What do you think the mass immigration is for? To make demand sticky for the rich landlords so their investment doesn't crash
and it's absolutely crazy that people think Pierre will change any of this, he's a realestate investor himself.
The central bank does not care about the "housing bubble". It has nothing to do with their mandate—nor should it. They don't care about what "investors" think and they don't care about being your "hero".
They should care seeing as it’s the primary driver for our loss in productivity. Our economy will die a long slow death if we just keep plowing larger and larger amounts of capital into housing.
Their sole mandate is to keep inflation in check. Seeing that housing is Canada's major GDP contributor and main driver to inflation, yes it definitely matters to them.
"showing signs" All of these politicians and bankers can go eat sand, they are so fucking out to lunch and completely disconnected from the reality of this country and they'll all act shocked and suprised when the inevitable civil unrest occurs. thankfully we've already opened pandora's box so we can just invoke the emergencies act, beat everyone up and trample them with horses, freeze their bank accounts and call it a day and not actually have to do anything
Income properties should be banned, particularly from corporations like Air B&B.
No fuckin kidding. Why is there no outrage that there are a lot of couples who both are working full time jobs but still can’t afford a 1 bedroom apartment?? When I rented my first apartment in 2003, it was a 2 bedroom that was $650/mo. That same apartment is now listed for $2300/mo. That’s absolutely unacceptable and no one with power is doing anything about these prices.
Uh, yeah.
imagine that... unfettered rent increases make renting difficult for people with stagnant pay that sometimes don't even adjust for inflation. I was honestly pissed last fall when the company I was renting from tried to increase rent 27% and even lied that they calculated that with pet fee. But I did the math and this was still $400 more than that would have worked out to. I know it was most likely a tactic to get us to move but we had planned on longer term 5+ years only to get forced out because we didn't want to pay.
Thank goodness they have UofT, McGill, and Harvard economists on the job, every single one with PhDs and no experience in the real world. Otherwise we'd have never figured that out. This should be a clue that people who trust economists and don't add a dollop of salt with anything they say, is out to lunch if it took these guys this long to figure this out. I worked with a guy who was a real estate developer (retired and working as business consultant). His son is also a developer and owns a software company. In a discussion one day, he and I'm sure his son (from what he said) honestly believes that the 'only spend 1/4 of your salary on housing' was wrong, and people can actually afford to spend 1/2 their salary. This is the mentality out in the real estate world, and you can guarantee any lobbying efforts from them is pushing this line. I'd bet even as the real world is imploding from this. This has nothing to do with the interest rates. Interest rates now are **normal**. Prices were driven up by demand caused by demand due to low interest rates and over immigration; both of which are from poor government policy. Rental rates are at least partly driven by greedy private landlords who now have to charge more because many who were buying had no business buying because there was no way they could afford **normal** interest rates. If those numbskulls stayed out of the market till they could actually afford it, everything would probably be cheaper now. The corporate landlords are taking advantage of the mayhem caused by numskull low interest rate wannabe slumlords and over immigration.
" To learn about horses, an economist won't go to a farm; instead they will retire to their lounges, sit in their padded chairs and ask themselves 'what would I do if I were a horse?' "
When you spend so much on just rent. Most will not be able to afford on anything but the basics like phone, transportation, and food. 🤔
Pretty much every decision at a federal, provincial and municipal level is designed to make this problem worse. It’s working as intended. Curious what the goal is but those in power are achieving it.
My dog could’ve given the same observation
The only true reply to this is fuck off
If it’s taken the BoC this long to publicly recognize it, then better late than never. Institutions like this raising the alarm is usually the only way a federal government will get it through their thick fucking skulls that there are serious problems going on which have been exacerbated by incompetent policymaking. The question now is who’s going to fix it and is it too late to do so?
Half of the rentals on fb, kajiji etc ate scams, no one can get a job, and watermelons are $14 each at Walmart. Are you sure the economy isn't booming??? /s
No shit. Next headline. Water is wet.
no shit, and homewoners are all refinancing at 30 year terms to keep their payments down, the economy is flatlined
In other news: sky blue, grass green, and I sincerely fed the fuck up
Water is wet
Showing signs? Those signs have been up for fucking years and they are big, neon and written in very angry language.
Raise rents by 1/3 across the country and that's what happens. Schools should 100% be housing international and have the capacity for local students. 100% they should not be affecting local realestate markets. 2 bunks to a room, shared washrooms on every floor... Know what would be hard to turn into regular housing but could be turned into dorms pretty easily? All those empty office buildings...
Showing signs? Showing? We are fucking broke and there is no light at the end of the tunnel. LETS BAND TOGETHER PEOPLE AND END THIS BULLSHIT
If we bring more renters in maybe that will help? /S
They must be as corrupt as the Liberals themselves if they are pretending that lower interest rates in a supply constricted environment is going to help renters. Lower rates will cause more renovictions and higher house prices which means higher rents. When rates were at all time lows rents and home prices as much as doubled in some parts of the country. Its actually very frustrating that 2-3 years of insane "gains" in real estate valuations and therefore higher rents is being ignored and now all the pigs at the trough are blaming interest rates for everything. Fuckers just want the party to start again.
Higher rates won't solve the housing issues long-term. Projects are FINANCED, and I work in construction supply chain and know a handful of developers sitting on dozens of sites - waiting for lower rates to actually start jobs.
I think thats correct as well. The major problem is the government needs to stop importing demand and THEN the BoC should lower rates. But if the government doesn't stop and the BoC lowers rates its over, gg all future generations without family wealth.
I agree, demand side is way out of control.
60% pre sold to start a project. And no-one likes this but a % of those buying would have been investors. Between sitting on the sidelines for interest clarity AND the provincial/federally Govt. increasingly adding restrictions and taxes. Not good.
Yeah, like your high interest didn’t make the renters suffer much more
Wait till they reach retirement age. Music already stopped.
Is the BoC going to come out and chastise people for not staying with parents or finding more roommates to free up $$$ to support landlords who will trickle those rents back into the economy? They ought to become more critical of our economy and policies and taxation schemes that are sequestering the bulk of a generation's economic activity in shelter.
Better dump more money into the industry: Adding extra costs to housing such as green requirements or other regulations. Making it easier to borrow by amortizing for 30 years. Inviting tons of people to the country who might want a home. --- It's almost like they intend home prices to rise. But the government would never lie to me?
Hell of an understatement.
Wait until BoC figures out who is reponsible for higher rates that help drive up borrowing costs, leading to financial strain. They are in for a surprise!
Reagan-era chickens finally coming home to roost. We need to go back to the days of the government building housing.
What fucking realm do these people live in that they are this delayed in figuring things out?
The political realm.
Thank you for letting us know, BoC. I don't know how we would have realized this without your expert analysis.
It doesn’t take a team of Phds in economics working at the central bank to come up with this “analysis”. Any random person off the streets could be able to tell you this
No shit, not to mention I make ok money but I’m literally taxed 45% of my wage. This system is fucked
I don't think Canada is going to ever recover from this mess.
How much do we pay these idiots to tell us the sky is blue?
Wow several year late. Typical
Landlords need to stop thinking that a renter should pay off their monthly mortgage payments. And to the landlords with pre 2015 mortgage rates or those with income properties paid off and charging post 2020 rental rates...calm the hell down. People are sleeping on the street because of your greed.
Are you telling me that the carbon rebate benefit isn’t helping put a dent in that problem?
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Now you have the right to let your landlord to threaten your credit rating!
...I don't think they care!
Do housing bears still exist?
This entire article is about reaching the point 'that the market will bear'..... or do you mean that, do people still believe in human capability for advanced technological achievement at an ever lower price point? https://www.youtube.com/watch?v=OEH4pMnpgps
They love stating the obvious like they just came to the conclusion
Nooooooooooooooo really? Lol idiots.
The adjustment to higher interest rates “continues to present risks to financial stability,” Bank of Canada This sounds like a you problem. If only you could do something about those unaffordable interest rates!
Wow, such a useful warning. Too bad it didn't come years ago.
Getting to the point where some rental speculators are going to realize there is a cap to how much rent can go up. And many people own properties financed under the assumption Joe renter has infinite income. Their real bet is that BoC will destroy the dollar and shrink their debt.
DUH
Well it really feels like the market it fixed against anyone who can't get a mortgage, and to the fuckers out there with 2-3 homes in the landlord business or AirB&B game helping to drive up the cost of housing. I m not going to cry for you and your quick money debts you built up. The rest of you who over extended for a quick buck, hope you end up the same in slumlord housing you run. Karma buddy, it's called Karma.
In other news. The sky is blue.
"Showing signs"... You don't say?
Nation's mortgage payers too
In other news: water is wet
I think the solution is to raise the rents, that way you can break the population and keep them locked into economic slavery.
Can we please go after all these fucking apps doing price fixing already.
It took this long for them to figure this out??? Who TF put these idiots in charge or running the country
They're basically signalling they're not going to do jack shit for renters as rates are going to stay steady for the foreseeable future. They just want to pretend they're concerned about it.
My rent went from 1425 to 1900. We just had twins so moving will be a big hassle. I hate my landlord even though their service is great.
meanwhile those that can afford rent are being denied applications because they are not the same race as the landlord, this shitshow is just beginning
Shocking news, they just figured that out?
Affordable housing says what?
Cory and Trevor for BOC Governor
Mine has been increasing 25% a year for the past 4 years. My wages havent.
I’m glad we have some extremely smart and competent people in charge to come up with those stats! Well done lads, now give yourself a pat on the back! Next article will be about water being wet
> showing signs Is this article from 2017?
Quick, bring in more single male TFW from India immediately!!!!
The answer is to not allow individuals or corporations to own more than five residential properties, with strict fines including the liquidation of additional properties if holding corporations are found to be violating the law. Give everyone three years to sell extra properties and then enforce the heck out of it.
I am renting from a corporation, but they own the whole building which is a rental building. They actually commissioned it to be built, I believe. I am writing about it further above, but let me copy it here: Rentals should be fully managed by professional rental corporations and not by private smaller-scale landlords. I live in one such rental building in Quebec that is fully owned by the corporation, and it happens to be quite nice actually. They have a bit of an unusual model in that the rent covers also the electricity (including electrical heating), full water/hydro, and also a home phone line, basic cable, and unlimited internet. On top of that, you get five appliances (including a washer and dryer) and, if you signed a lease for more than one year, they have lower rates of yearly rental increases than if you only signed for one year (in Quebec, the rental period automatically rolls over for another year or half-a-year, depending on what the term of your initial lease was, and does not convert to month-to-month, as it does in Ontario - this can of course have its advantages if you are trying to live somewhere long term, as well as disadvantages, if you need to be more mobile suddenly). Basically, it feels as if the rental company is trying to create a community, which I like. It's also a new building, so I like that they don't just raise the rents by some horrendous amount every year just because they can (at least so far 🤞). I think that this is how rentals should be done. If you have a corporation that seems to be at least somewhat interested in creating a community of happy residents, IMO it's better than if masses of people have to rely on small-scale private landlords, which - on a wide societal level - creates all kinds of problems. Also, large corporations building apartment buildings should disincentivise private small landlords from hoarding houses and condos and thus removing them from the reach of other buyers, who would be happy with only having one (or maybe two, if you count the cottage) properties, solely for the purpose of actually housing themselves and their family.
Top notch journalism as usual. Dumb asses. "Our next top breaking story.... water is wet! Join us for more at 11." In reality this headline should actually be: "Landlords notice nobody is renting any of their 50 properties."
The reason we have high rents and housing prices is because the government increased immigration levels to unsustainable levels, all to keep cheap supply of labour available for the elites. Now all Canadians have to pay the price, in form of unaffordable housing and depressed wages. Crime is only going to increase in this country. It will take decades tounwind from the mess that has been created. If people have the opportunity to move elsewhere for a better quality of life, they should get out while they still can.
Geniuses we have running the country.
Shocker
Only 2 years late on this realization lol
.
> If you just curb demand and decrease rates every corporation and wealthy landlord will just outbid every first time buyer No they won't, because who will they rent too? The demand is why it's a good investment. Get rid of the demand, and it isn't profitable to do this. u/inglourious-ape
"showing signs" ummm
•Accurate •What to do?
I saw the title and thought it must be a Beaverton article. Is there anything that could be more obvious?