Chu tells STOREYS that “If our financing and construction costs go up, our future rental rate will increase accordingly.”
Students, of course, are already facing an extremely tough rental market. GEC Living is the biggest off-campus housing provider for students in Metro Vancouver. While they have several projects on the way, miniscule vacancy rates could push low-income students closer and closer towards housing precarity, and possibly even homelessness. Chu also points out that because higher prices means fewer people buying homes, more people will turn to renting, compounding the situation.
These factors can prove especially significant in a real estate market like Vancouver. Unfortunately, going forward, Lee sees the market conditions getting worse.
“Should this condition continue, pre-sale prices will remain or go higher. If the developer is not able to attain those numbers, they will simply just not build. This will then impact how many projects we will release in the short term and, of course, impact supply in the long term. The developer will consider all of these factors, and they will make the right decision for their business. As a result, this will cost a negative chain reaction where the prices for our homes in the future will get more and more expensive due to a further lack of supply.”
Chu also has a dark outlook. He sees supply going from “bad to worse” and says that “when the [housing supply] pipeline stops, it takes months to re-mobilize and years to catch up.” He also sees demand simultaneously increasing. “International and domestic students arriving in Vancouver to study, they rent. Migrants moving to Vancouver for work, they rent. New immigrants arriving in Canada (3M in five years), they rent before they buy. Interest rate causes stress test issues for new home buyers; thus they rent. Homeowners downsize from owning to renting, they rent.”
How would he describe the changes in Vancouver’s rental and housing crisis in the near future as a result of that supply shortage and demand increase? “I think the rental crisis will transform a bad dream into a nightmare.”
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Students, of course, are already facing an extremely tough rental market. GEC Living is the biggest off-campus housing provider for students in Metro Vancouver. While they have several projects on the way, miniscule vacancy rates could push low-income students closer and closer towards housing precarity, and possibly even homelessness. Chu also points out that because higher prices means fewer people buying homes, more people will turn to renting, compounding the situation.
These factors can prove especially significant in a real estate market like Vancouver. Unfortunately, going forward, Lee sees the market conditions getting worse.
“Should this condition continue, pre-sale prices will remain or go higher. If the developer is not able to attain those numbers, they will simply just not build. This will then impact how many projects we will release in the short term and, of course, impact supply in the long term. The developer will consider all of these factors, and they will make the right decision for their business. As a result, this will cost a negative chain reaction where the prices for our homes in the future will get more and more expensive due to a further lack of supply.”
Chu also has a dark outlook. He sees supply going from “bad to worse” and says that “when the [housing supply] pipeline stops, it takes months to re-mobilize and years to catch up.” He also sees demand simultaneously increasing. “International and domestic students arriving in Vancouver to study, they rent. Migrants moving to Vancouver for work, they rent. New immigrants arriving in Canada (3M in five years), they rent before they buy. Interest rate causes stress test issues for new home buyers; thus they rent. Homeowners downsize from owning to renting, they rent.”
How would he describe the changes in Vancouver’s rental and housing crisis in the near future as a result of that supply shortage and demand increase? “I think the rental crisis will transform a bad dream into a nightmare.”
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A third of Canadians worry about covering 'daily living expenses,' survey finds
Financial well-being index drops to lowest reading since it started
As inflation trips along, almost one-third of working Canadians say they are worried about being able to cover their “daily living expenses,” according to a new report.
The Financial Wellbeing Index for Summer 2022 released by LifeWorks, a unit of Telus Health, found that 29 per cent of survey respondents fear they won’t meet their day-to-day costs of living. The index’s reading of Canadians’ overall financial well-being dropped to 64 (out of 100), its lowest-ever number since the quarterly index was launched in the winter of 2021.
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Financial well-being index drops to lowest reading since it started
As inflation trips along, almost one-third of working Canadians say they are worried about being able to cover their “daily living expenses,” according to a new report.
The Financial Wellbeing Index for Summer 2022 released by LifeWorks, a unit of Telus Health, found that 29 per cent of survey respondents fear they won’t meet their day-to-day costs of living. The index’s reading of Canadians’ overall financial well-being dropped to 64 (out of 100), its lowest-ever number since the quarterly index was launched in the winter of 2021.
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“The last quarter has been riddled with heightened financial concerns as inflation, interest rates and overall cost of living have significantly increased,” Idan Shlesinger, president of retirement and financial solutions and executive vice-president at LifeWorks, said in a press release.
Among those experiencing financial anxiety, the survey, on which the index is based, found that people aged 40 and under are 75 per cent more likely than those older than 50 to be fretting about basic living expenses. And people with children are 40 per cent more likely than people without children to be worried about covering daily costs.
Some Canadians, however, are thriving. For example, those working in the mining and oil and gas extraction industries said their financial well-being has improved, with their index score rising to 72.5 from 69.9 last winter. Those in the professional, scientific, technical services had the second-highest score at 70.6, up from 70.4.
Scores between 0 to 49 correspond with distress levels, scores between 50 to 79 correspond with strain levels and scores between 80 to 100 correspond with optimal levels.
Of course, no poll about personal finances would be worth its salt these days without feedback on inflation.
Inflation, as measured by the consumer price index, increased 7.6 per cent in July from the previous year, down from an 8.1 per cent increase in June. Still, the core reading, which excludes gasoline, continued to rise in July, up 6.6 per cent compared with 6.5 per cent in June. Statistics Canada will release numbers for August on Sept. 20.
The LifeWorks survey found that inflation is hitting 50 per cent of Canadians in the survey hardest at the grocery store, while 35 per cent said they were feeling it most at the gas pump, followed by housing at seven per cent and debt repayment at five per cent.
LifeWorks also asked how Canadians are handling rising interest rates and whether they would feel mortgage payment pressure if the Bank of Canada raised its benchmark lending rate above three per cent.
The survey was conducted in early July, well before the central bank raised its rate to 3.25 per cent on Sept. 7.
At the time of the survey, 23 per cent said they were “concerned” and a further 17 per cent were “unsure about their ability to meet mortgage payments” based on a Bank of Canada rate higher than three per cent.
On the investing side, 44 per cent of respondents said the decline in equities had an impact on them while 22 per cent said it had not, with the former having a financial well-being index score of 65.9 and the latter a score of 69.1.
Stock markets have taken a hit in 2022, with the S&P TSX composite down 7.6 per cent year to date as of Thursday. In July, at the time the research was conducted, the TSX was down 13.6 per cent.
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Among those experiencing financial anxiety, the survey, on which the index is based, found that people aged 40 and under are 75 per cent more likely than those older than 50 to be fretting about basic living expenses. And people with children are 40 per cent more likely than people without children to be worried about covering daily costs.
Some Canadians, however, are thriving. For example, those working in the mining and oil and gas extraction industries said their financial well-being has improved, with their index score rising to 72.5 from 69.9 last winter. Those in the professional, scientific, technical services had the second-highest score at 70.6, up from 70.4.
Scores between 0 to 49 correspond with distress levels, scores between 50 to 79 correspond with strain levels and scores between 80 to 100 correspond with optimal levels.
Of course, no poll about personal finances would be worth its salt these days without feedback on inflation.
Inflation, as measured by the consumer price index, increased 7.6 per cent in July from the previous year, down from an 8.1 per cent increase in June. Still, the core reading, which excludes gasoline, continued to rise in July, up 6.6 per cent compared with 6.5 per cent in June. Statistics Canada will release numbers for August on Sept. 20.
The LifeWorks survey found that inflation is hitting 50 per cent of Canadians in the survey hardest at the grocery store, while 35 per cent said they were feeling it most at the gas pump, followed by housing at seven per cent and debt repayment at five per cent.
LifeWorks also asked how Canadians are handling rising interest rates and whether they would feel mortgage payment pressure if the Bank of Canada raised its benchmark lending rate above three per cent.
The survey was conducted in early July, well before the central bank raised its rate to 3.25 per cent on Sept. 7.
At the time of the survey, 23 per cent said they were “concerned” and a further 17 per cent were “unsure about their ability to meet mortgage payments” based on a Bank of Canada rate higher than three per cent.
On the investing side, 44 per cent of respondents said the decline in equities had an impact on them while 22 per cent said it had not, with the former having a financial well-being index score of 65.9 and the latter a score of 69.1.
Stock markets have taken a hit in 2022, with the S&P TSX composite down 7.6 per cent year to date as of Thursday. In July, at the time the research was conducted, the TSX was down 13.6 per cent.
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Canadian households have lost billions in real estate cool-down
Home prices have only fallen to where they were 18 months ago, but there are knock-on effects to the economy.
Canada's real estate market has suddenly and dramatically cooled. Sales have dropped 24 per cent since this time last year. The average price of a home in this country has fallen by $179,047 since the peak in February.
And yet, has much actually changed?
"I consider it like letting the air out of a balloon," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "You don't want it necessarily to pop and burst, but in the near term prices needed to come down to something that was a little bit more sustainable."
For anyone trying to get into the market, the prospect of a cool down was always presented as an opportunity. But even with a 20 per cent drop in prices, Canada's average home price has fallen back to where it was in early 2021.
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Home prices have only fallen to where they were 18 months ago, but there are knock-on effects to the economy.
Canada's real estate market has suddenly and dramatically cooled. Sales have dropped 24 per cent since this time last year. The average price of a home in this country has fallen by $179,047 since the peak in February.
And yet, has much actually changed?
"I consider it like letting the air out of a balloon," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "You don't want it necessarily to pop and burst, but in the near term prices needed to come down to something that was a little bit more sustainable."
For anyone trying to get into the market, the prospect of a cool down was always presented as an opportunity. But even with a 20 per cent drop in prices, Canada's average home price has fallen back to where it was in early 2021.
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What has changed, however, is how house-poor the typical Canadian family is feeling lately. Statistics Canada says the drop in home prices has helped drive the largest decline of household wealth this country has ever seen.
Billions lost in household net worth
It may be easy to look at the decline in home prices and, if you're not an owner trying to sell, say, "That doesn't affect me."
But the reality is: Much of Canadian household wealth is tied up in home prices, the sector itself remains one of the biggest contributors to Canadian GDP, and it just took a hit.
Statscan says the net worth of Canadian households — defined as the value of all assets minus all liabilities — fell by a staggering $990.1 billion in April, May and June.
"This decline was compounded by a $389.8-billion drop in the value of non-financial assets, as the streak of gains in real estate that began in late 2018 was halted by a housing market grappling with rapidly rising interest rates," wrote the data agency in a release last week.
The rest of the drop in household wealth comes as stock markets tanked in the second quarter. (Statscan's figures only covered the period ending in June. Stock markets have recovered somewhat since then, but the once red-hot housing market losses have accelerated through July and August.)
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Billions lost in household net worth
It may be easy to look at the decline in home prices and, if you're not an owner trying to sell, say, "That doesn't affect me."
But the reality is: Much of Canadian household wealth is tied up in home prices, the sector itself remains one of the biggest contributors to Canadian GDP, and it just took a hit.
Statscan says the net worth of Canadian households — defined as the value of all assets minus all liabilities — fell by a staggering $990.1 billion in April, May and June.
"This decline was compounded by a $389.8-billion drop in the value of non-financial assets, as the streak of gains in real estate that began in late 2018 was halted by a housing market grappling with rapidly rising interest rates," wrote the data agency in a release last week.
The rest of the drop in household wealth comes as stock markets tanked in the second quarter. (Statscan's figures only covered the period ending in June. Stock markets have recovered somewhat since then, but the once red-hot housing market losses have accelerated through July and August.)
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Making the Smart Choice with the support of a TRREB Member
Ensure your buying or selling process is risk-free. Make the Smart Choice, and work with a TRREB Member to protect yourself and receive the expertise you can trust.
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Ensure your buying or selling process is risk-free. Make the Smart Choice, and work with a TRREB Member to protect yourself and receive the expertise you can trust.
.
Renting is growing twice as fast as home ownership, census reveals
10 million households own their home, while 5 million rent. But the gap is narrowing.
The number of households who rent their homes has grown twice as fast as the number of those who own, census data has revealed.
Statistics Canada revealed Wednesday that the number of households who rent their homes grew by more than 21 per cent between 2011 and 2021. By contrast, the number of households that own their homes grew by just eight per cent over the same period.
Although the gap is narrowing, owners still outnumber those who rent by a significant margin. More than 10 million households owned their home last year — about twice as many as the five million who rent.
All in all, Canadians were less likely to own their own home than they were in 2011.
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10 million households own their home, while 5 million rent. But the gap is narrowing.
The number of households who rent their homes has grown twice as fast as the number of those who own, census data has revealed.
Statistics Canada revealed Wednesday that the number of households who rent their homes grew by more than 21 per cent between 2011 and 2021. By contrast, the number of households that own their homes grew by just eight per cent over the same period.
Although the gap is narrowing, owners still outnumber those who rent by a significant margin. More than 10 million households owned their home last year — about twice as many as the five million who rent.
All in all, Canadians were less likely to own their own home than they were in 2011.
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Energy crunch in Canada looming closer than you might think
Lean hard on wind and solar but keep natural gas in the mix, RBC report says
Wind and solar should make up the bulk of new electricity generation in the next decade as Canada strives to expand its transmission system and meet its goal of a net-zero grid by 2035, with natural gas “unavoidable in the energy mix in the short-to-medium term,” a new report from the Royal Bank of Canada says.
Why are wind and solar among the report’s leading short-term solutions? The cost of wind and solar power have fallen 70 and 90 per cent, respectively, making them “the cheapest sources of new electricity,” RBC economist Colin Guldimann, the report’s author, said.
Furthermore, construction times on these types of projects are fast, meaning they can be added to the grid at a faster pace than other types of generating sources.
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Lean hard on wind and solar but keep natural gas in the mix, RBC report says
Wind and solar should make up the bulk of new electricity generation in the next decade as Canada strives to expand its transmission system and meet its goal of a net-zero grid by 2035, with natural gas “unavoidable in the energy mix in the short-to-medium term,” a new report from the Royal Bank of Canada says.
Why are wind and solar among the report’s leading short-term solutions? The cost of wind and solar power have fallen 70 and 90 per cent, respectively, making them “the cheapest sources of new electricity,” RBC economist Colin Guldimann, the report’s author, said.
Furthermore, construction times on these types of projects are fast, meaning they can be added to the grid at a faster pace than other types of generating sources.
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“Provinces facing near-term challenges should lean hard into building renewables, cutting inefficiencies, and maintaining their current gas capacity. The harder choices are yet to come,” he said.
On the natural gas front, Guldimann said existing plants should continue to operate through 2035 to ensure the transition over to a net-zero grid goes smoothly.
Canada is already a clean electricity juggernaut due to hydroelectric resources, but it’s at a crossroads. Consumption is expected to increase by 50 per cent over the next decade and a major overhaul is needed if the power grid is to double by 2050.
As a result, provincial and federal governments will need to make a series of choices that account for decarbonization while ensuring the grid is both reliable and affordable.
“If they get it wrong, Canada could suffer Europe’s fate of a hobbled, energy-insecure grid that leaves consumers with soaring bills,” Guldimann said.
An energy crunch in Canada is looming nearer than many might expect.
The report, released on Wednesday, warned that Ontario — “Canada’s economic engine” — could be confronted with an energy shortage “as early as 2026, especially as current contracts for renewables and gas plants expire.” Among the reasons behind the potential shortfall are rising electricity demand for electric vehicles and electrified public transportation.
In the West, Alberta and Saskatchewan will also have to soon choose a path. Those provinces have abundant sources of solar and wind power, but coal has played a “significant role” in their grids and some of those plants are being converted to gas. Given the provinces’ abundant sources of natural gas, eliminating its role could prove politically complicated, Guldimann said.
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On the natural gas front, Guldimann said existing plants should continue to operate through 2035 to ensure the transition over to a net-zero grid goes smoothly.
Canada is already a clean electricity juggernaut due to hydroelectric resources, but it’s at a crossroads. Consumption is expected to increase by 50 per cent over the next decade and a major overhaul is needed if the power grid is to double by 2050.
As a result, provincial and federal governments will need to make a series of choices that account for decarbonization while ensuring the grid is both reliable and affordable.
“If they get it wrong, Canada could suffer Europe’s fate of a hobbled, energy-insecure grid that leaves consumers with soaring bills,” Guldimann said.
An energy crunch in Canada is looming nearer than many might expect.
The report, released on Wednesday, warned that Ontario — “Canada’s economic engine” — could be confronted with an energy shortage “as early as 2026, especially as current contracts for renewables and gas plants expire.” Among the reasons behind the potential shortfall are rising electricity demand for electric vehicles and electrified public transportation.
In the West, Alberta and Saskatchewan will also have to soon choose a path. Those provinces have abundant sources of solar and wind power, but coal has played a “significant role” in their grids and some of those plants are being converted to gas. Given the provinces’ abundant sources of natural gas, eliminating its role could prove politically complicated, Guldimann said.
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'Financial stress storm' just starting for working Canadians
Financial well-being of workers dives as costs soar, National Payroll Institute survey says
More employed Canadians are finding themselves on shaky financial ground as inflation and higher interest rates erode any savings gains they made during pandemic lockdowns — and the worst may be yet to come.
The financial well-being of workers has fallen sharply this year amid rising expenses brought on by soaring living costs, according to the annual survey of working Canadians from the National Payroll Institute. More people say they’re finding it difficult to stretch their income to cover their bills, with the number of those living paycheque-to-paycheque jumping 26 per cent compared to this time last year.
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Financial well-being of workers dives as costs soar, National Payroll Institute survey says
More employed Canadians are finding themselves on shaky financial ground as inflation and higher interest rates erode any savings gains they made during pandemic lockdowns — and the worst may be yet to come.
The financial well-being of workers has fallen sharply this year amid rising expenses brought on by soaring living costs, according to the annual survey of working Canadians from the National Payroll Institute. More people say they’re finding it difficult to stretch their income to cover their bills, with the number of those living paycheque-to-paycheque jumping 26 per cent compared to this time last year.
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The days of solely working from home, saving on commuting costs and socking away money in savings accounts are behind most Canadians. Budgets are now getting stretched as more people head back to the office amid higher debt costs from rising interest rates and inflation hovering at levels not seen since the 1980s. Though the consumer price index has decelerated for the past two months, it still remains high. CPI clocked in at seven per cent in August, Statistics Canada said yesterday. Gas prices are cooling but food prices continue to rise, and were up 10.8 per cent from a year ago, putting pressure on wallets.
To get by, people are piling on debt. Those spending more than they make climbed 11 per cent — the highest ever in the survey’s history. Meanwhile, the number of workers carrying credit card debt soared to 42 per cent, climbing from 29 per cent in 2021, the survey said.
Savings are getting neglected, too. Nine per cent of workers say they don’t save at all, while 34 per cent say they put aside only one to five per cent of their paycheques, up from 27 per cent last year, when people reported being more financially stable.
There are other signs that workers are struggling under the burden of higher costs. One way the institute measures financial health is by placing people into three categories, or “clusters”: those who are comfortable, those who are coping, and those who are stressed. Last year, 46 per cent of respondents said they were comfortable financially. But this year, eight per cent of those joined the coping category, and another two per cent went over to the stressed section.
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To get by, people are piling on debt. Those spending more than they make climbed 11 per cent — the highest ever in the survey’s history. Meanwhile, the number of workers carrying credit card debt soared to 42 per cent, climbing from 29 per cent in 2021, the survey said.
Savings are getting neglected, too. Nine per cent of workers say they don’t save at all, while 34 per cent say they put aside only one to five per cent of their paycheques, up from 27 per cent last year, when people reported being more financially stable.
There are other signs that workers are struggling under the burden of higher costs. One way the institute measures financial health is by placing people into three categories, or “clusters”: those who are comfortable, those who are coping, and those who are stressed. Last year, 46 per cent of respondents said they were comfortable financially. But this year, eight per cent of those joined the coping category, and another two per cent went over to the stressed section.
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Ontario Housing Market Snapshot for August 2022
The Average Price of Homes in Ontario is Down 0.6%
In August 2022, the average price of homes sold across Ontario was $829,739, down 0.6% from $835,124 in August 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone, Emai:
+1 (647) 772-9502
hoizady@yahoo.com
.
The Average Price of Homes in Ontario is Down 0.6%
In August 2022, the average price of homes sold across Ontario was $829,739, down 0.6% from $835,124 in August 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone, Emai:
+1 (647) 772-9502
hoizady@yahoo.com
.
Housing Market Snapshot for August 2022
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone, Emai:
+1 (647) 772-9502
hoizady@yahoo.com
.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home Home Evaluation
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-residents of Canada Non-Resident
- Buying a house/condo for Investment Property investment
- Renovation services
☎️ Ways to contact us via Phone, Emai:
+1 (647) 772-9502
hoizady@yahoo.com
.
Affordability in Canada is at a crisis point — and politicians don't have an easy fix
Experts say government must think long term when it comes to addressing supply
For Canadians like Missy Anderson, the cost of living is becoming a crisis.
She's 38 years old, a mother of four, and lives in Burlington, Ont. Like many other Canadians she has been forced to make difficult choices about how she spends her money.
"It's a juggling act," she said in an interview on CBC's The House that aired Saturday. On top of the costs of feeding and caring for her children, a low-dose chemotherapy treatment to address Stage 1 cervical cancer presents another challenge for the freelance writer.
Inflation in July was up 7.6 per cent in July over the same period last year. It was the first month-to-month decline since 2021, but the cost of living is still taking a bite out of Anderson's budget — and she's hoping for help from politicians.
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Experts say government must think long term when it comes to addressing supply
For Canadians like Missy Anderson, the cost of living is becoming a crisis.
She's 38 years old, a mother of four, and lives in Burlington, Ont. Like many other Canadians she has been forced to make difficult choices about how she spends her money.
"It's a juggling act," she said in an interview on CBC's The House that aired Saturday. On top of the costs of feeding and caring for her children, a low-dose chemotherapy treatment to address Stage 1 cervical cancer presents another challenge for the freelance writer.
Inflation in July was up 7.6 per cent in July over the same period last year. It was the first month-to-month decline since 2021, but the cost of living is still taking a bite out of Anderson's budget — and she's hoping for help from politicians.
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"They need to understand how the average Canadian is living. They offer benefits that I think they think sounds good — stuff like one-time $500 help for rent," Anderson told host Catherine Cullen.
"If you're in this area, that's not going to do a whole lot for help. That's like two trips to the grocery store."
Anderson is hoping for more help as soon as possible.
The federal government announced this week new measures that are aimed at helping with the affordability challenge, including the rental benefit Anderson describes, as well as boosted GST credits and a new dental benefit.
"These are things that will make a difference in people's lives right now, but they are sufficiently targeted that they will not contribute to increased inflation," said Prime Minister Justin Trudeau.
Opposition Leader Pierre Poilievre, however, argued the plan would "pour gasoline on the fire" of inflation. Scotiabank head of capital markets economics Derek Holt also criticized the government for shelling out more spending.
No easy solutions for short term pain
Trevor Tombe, an economist at the University of Calgary, told The House it was unlikely the recently announced measures would have a significant effect.
But he noted it might be hard to address the root problem of inflation quickly, so one of the things governments need to be honest about is "recognizing clearly and explicitly that there's not a lot that can be done in the very short term," he said.
Much of inflation is caused by global factors and high energy prices, Tombe said, on which government policies around spending or transfers can have limited impact. Rate hikes from the Bank of Canada will also take time to have an effect on inflation, Tombe noted.
Sean Speer, a senior fellow at the Munk School of Global Affairs and former economic policy adviser to Stephen Harper agreed that long term planning was needed to comprehensively deal with major challenges facing Canada today.
"I don't think we've heard enough from the government either on short term plans either to boost supply, but more important long term plans. There are just so many areas where we find ourselves supply constrained: health care, housing, energy," he said.
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"If you're in this area, that's not going to do a whole lot for help. That's like two trips to the grocery store."
Anderson is hoping for more help as soon as possible.
The federal government announced this week new measures that are aimed at helping with the affordability challenge, including the rental benefit Anderson describes, as well as boosted GST credits and a new dental benefit.
"These are things that will make a difference in people's lives right now, but they are sufficiently targeted that they will not contribute to increased inflation," said Prime Minister Justin Trudeau.
Opposition Leader Pierre Poilievre, however, argued the plan would "pour gasoline on the fire" of inflation. Scotiabank head of capital markets economics Derek Holt also criticized the government for shelling out more spending.
No easy solutions for short term pain
Trevor Tombe, an economist at the University of Calgary, told The House it was unlikely the recently announced measures would have a significant effect.
But he noted it might be hard to address the root problem of inflation quickly, so one of the things governments need to be honest about is "recognizing clearly and explicitly that there's not a lot that can be done in the very short term," he said.
Much of inflation is caused by global factors and high energy prices, Tombe said, on which government policies around spending or transfers can have limited impact. Rate hikes from the Bank of Canada will also take time to have an effect on inflation, Tombe noted.
Sean Speer, a senior fellow at the Munk School of Global Affairs and former economic policy adviser to Stephen Harper agreed that long term planning was needed to comprehensively deal with major challenges facing Canada today.
"I don't think we've heard enough from the government either on short term plans either to boost supply, but more important long term plans. There are just so many areas where we find ourselves supply constrained: health care, housing, energy," he said.
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StatCan reports on the most unaffordable housing markets
British Columbia (25.5%) and Ontario (24.2%) had the highest rates of unaffordable housing in Canada as of 2021, according to the national statistics agency.
A major driver is the persistence of higher rates of unaffordable housing in Toronto (30.5%) and Vancouver (29.8%), Statistics Canada said.
“Canadians paid a premium for a downtown city lifestyle, where housing costs were higher and rates of unaffordable housing were highest,” StatCan reported. “In 2021, the average rent for a two-bedroom dwelling in the primary downtowns of Canada’s three largest CMAs was higher than the average rent for each respective CMA as a whole.”
Montreal was particularly affected by the trend, with the rent for a two-bedroom dwelling in the market’s primary downtown being 69.9% higher compared to the rate for the CMA overall. Other markets with similarly large disparities in two-bedroom rental costs were Vancouver (50.1%) and Toronto (32.2%).
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British Columbia (25.5%) and Ontario (24.2%) had the highest rates of unaffordable housing in Canada as of 2021, according to the national statistics agency.
A major driver is the persistence of higher rates of unaffordable housing in Toronto (30.5%) and Vancouver (29.8%), Statistics Canada said.
“Canadians paid a premium for a downtown city lifestyle, where housing costs were higher and rates of unaffordable housing were highest,” StatCan reported. “In 2021, the average rent for a two-bedroom dwelling in the primary downtowns of Canada’s three largest CMAs was higher than the average rent for each respective CMA as a whole.”
Montreal was particularly affected by the trend, with the rent for a two-bedroom dwelling in the market’s primary downtown being 69.9% higher compared to the rate for the CMA overall. Other markets with similarly large disparities in two-bedroom rental costs were Vancouver (50.1%) and Toronto (32.2%).
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“Downtown households are most likely to be spending more than 30% of their income on shelter costs, for both owners and renters,” StatCan added. “In 33 of the 42 primary downtowns in Canada’s large urban centres, the unaffordable housing rate for renters was higher than the national average in 2021.”
Approximately half of renter residents in the downtown areas of Kingston (50.4%), Barrie (50.0%), Halifax (47.7%), and Peterborough (47.2%) were found to be living in unaffordable housing.
Toronto (45.2%), Vancouver (44.8%), and Montreal (44.2%) also posted elevated unaffordability rates in 2021, StatCan said.
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Approximately half of renter residents in the downtown areas of Kingston (50.4%), Barrie (50.0%), Halifax (47.7%), and Peterborough (47.2%) were found to be living in unaffordable housing.
Toronto (45.2%), Vancouver (44.8%), and Montreal (44.2%) also posted elevated unaffordability rates in 2021, StatCan said.
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Investors are trying to fill the multifamily rental housing gap and that's not a bad thing
If large financial firms and institutions are prevented from investing in multifamily rental housing, who else will pick up the tab?
The growing role of financial firms and institutional investors in multifamily rental housing has been criticized for eroding affordability in Canada and elsewhere, leading many to ask governments to limit or restrict their abilities to buy properties.
A new report by the Office of the Federal Housing Advocate that explores this “financialization” of housing and its impact on lower-income racialized communities in Toronto is critical of the “entry of financial firms and institutional investors seeking to convert multifamily real estate into a financial vehicle to generate wealth.”
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If large financial firms and institutions are prevented from investing in multifamily rental housing, who else will pick up the tab?
The growing role of financial firms and institutional investors in multifamily rental housing has been criticized for eroding affordability in Canada and elsewhere, leading many to ask governments to limit or restrict their abilities to buy properties.
A new report by the Office of the Federal Housing Advocate that explores this “financialization” of housing and its impact on lower-income racialized communities in Toronto is critical of the “entry of financial firms and institutional investors seeking to convert multifamily real estate into a financial vehicle to generate wealth.”
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The report suggests institutional investors have contributed to increasing rents, the eviction of non-paying tenants and forcing paying tenants to leave for renovations that housing advocates consider a cover that landlords use so that they can find higher-paying tenants.
Securing shelter for the most vulnerable in society is critical for social justice and the collective welfare of all. Providing affordable shelter for low-income households and social housing for those who cannot bear the cheapest market rent is the state’s and society’s collective commitment.
But providing multifamily housing is a capital-intensive enterprise. Constructing a new, purpose-built rental housing structure costs millions of dollars. Its maintenance and ownership over extended periods require significant investments.
All of which begs a few questions: if large investors are prevented from investing in multifamily rental housing, who is going to pick up the tab? The share of multifamily housing owned by institutional investors has increased, but has this increase automatically led to adverse housing outcomes for all? Without the huge investments needed to build new purpose-built rental housing, would there have been the recent resurgence in rental supply?
Recent Statistics Canada data presents a relatively optimistic picture for affordable housing. The number of households in 2021 experiencing core housing needs — that is, those facing affordability challenges, crowding or living in structurally compromised dwellings — has declined since 2016, according to 2021 census data. Also, a noticeably smaller share of the population experienced affordability challenges in 2021 than in 2016.
Lowest-income earners reported the most significant improvement in housing outcomes, the data shows. Statistics Canada speculates that housing outcomes of lower-income households improved, partly because of government support programs during the pandemic.
Despite the increased investments in purpose-built rental housing by institutional investors, the experience during the pandemic suggests government programs and safety nets can improve housing outcomes irrespective of the size and structure of the landlords.
Food is as essential as housing for well-being, so multifamily purpose-built rental housing is a business similar to grocery stores. But you don’t see campaigns to convince large retailers to fix the price of a loaf of bread or carton of milk, so why target private landlords to provide non-market housing to those who cannot afford market rents?
Since price movements with larger deviations from the long-term trend influence consumer sentiments more, the idea that buyers' remorse is more pronounced now is taking root.
Falling housing prices may not be leading to widespread buyers' remorse the way you think.
.
Securing shelter for the most vulnerable in society is critical for social justice and the collective welfare of all. Providing affordable shelter for low-income households and social housing for those who cannot bear the cheapest market rent is the state’s and society’s collective commitment.
But providing multifamily housing is a capital-intensive enterprise. Constructing a new, purpose-built rental housing structure costs millions of dollars. Its maintenance and ownership over extended periods require significant investments.
All of which begs a few questions: if large investors are prevented from investing in multifamily rental housing, who is going to pick up the tab? The share of multifamily housing owned by institutional investors has increased, but has this increase automatically led to adverse housing outcomes for all? Without the huge investments needed to build new purpose-built rental housing, would there have been the recent resurgence in rental supply?
Recent Statistics Canada data presents a relatively optimistic picture for affordable housing. The number of households in 2021 experiencing core housing needs — that is, those facing affordability challenges, crowding or living in structurally compromised dwellings — has declined since 2016, according to 2021 census data. Also, a noticeably smaller share of the population experienced affordability challenges in 2021 than in 2016.
Lowest-income earners reported the most significant improvement in housing outcomes, the data shows. Statistics Canada speculates that housing outcomes of lower-income households improved, partly because of government support programs during the pandemic.
Despite the increased investments in purpose-built rental housing by institutional investors, the experience during the pandemic suggests government programs and safety nets can improve housing outcomes irrespective of the size and structure of the landlords.
Food is as essential as housing for well-being, so multifamily purpose-built rental housing is a business similar to grocery stores. But you don’t see campaigns to convince large retailers to fix the price of a loaf of bread or carton of milk, so why target private landlords to provide non-market housing to those who cannot afford market rents?
Since price movements with larger deviations from the long-term trend influence consumer sentiments more, the idea that buyers' remorse is more pronounced now is taking root.
Falling housing prices may not be leading to widespread buyers' remorse the way you think.
.