Ontario housing slumps, developers warn situation will "get worse" before improving
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- Опубліковано 7 вер 2024
- Building hundreds of thousands of homes annually is one of Ontario's most pressing priorities, however, the construction industry has been in a slump - thanks to a perfect storm.
Two years and multiple housing laws since the Ford government promised to build 1.5 million new homes in a decade to solve the province’s housing crisis, key indicators suggest home construction is grinding to a trickle.
The number of housing starts in the first half of 2024 has lagged behind the previous year, while June saw a 44-per cent drop year-on-year. At the same time, new home sales, which can predict future home construction, are also falling.
Global’s Colin D’Mello reports.
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You don't fix the housing crisis by building more homes people can't afford!
Oak Henge - exactly. That's a HUGE point
please learn some basic economics
@@adanactnomew7085 Nothing about this country's housing market is explained by 'basic economics'.
@@beautanner8409 High immigration rates cause excessive demand, leading to high prices. Econ 101.
@@beautanner8409labour and material costs is very high. It costs $300 psf to build a basic 1800-2000 sqft home in Ontario. That's costs alone.
It's not a slump, it's a depression.
SHUSH!!!!!
You've been told it's slump, then it's a slump!!! If you think otherwise, than you are clearly Kremlin agent
It's war.
Justin Trudeau is a war criminal simply by virtue of being French, and Roman Catholic.
Both conditions are in breech of our British North America treaty.
Read the Wiki profile of Barbara Butch.
Read the Wiki profile of the woman who made Dylan Mulvaney a spokesfreak for Bud Light.
Observe patterns.
House prices need to come to reality…pre-pandemic + typical 3% appreciation…so roughly 50% down is reasonable reduction to current house prices…
@@taranjitsingh2714 house prices are at reality, are You?
how can a paper house cost $500k+?
People forget that you’re also paying for land when you buy a house.
GTA is surrounded by the largest fresh water lakes in the world which is the most important resource to living beings
@@surfmunki surely there are no lakes elsewhere in the country
Labour, wiring, copper, ceramic toilets tubs, showers, tile, carpet, cabinets, trim, paint, roofing, concrete foundation, driveway materials, etc etc,
@@tnbrfllerfalse.
It’s land prices, I saw a same new build in gta vs suburbs of London
One was for sale for $2.5M
The other was $1.6M
It’s the land. Plus all the profit taking
160 thousand all in…
NEWSFLASH: No one can afford a home because they are too F-ing expensive!!!
this is when prices will lower. it's no secret houses are a matter of supply and demand at a given price point. developers know exactly what to build to supply the market.
Everyone keep saying GTA housing is expensive. Yet they still prefer to stick around. Because after all the expenses, they are still better off here in GTA that no other place can offer. Otherwise they will leave long time back, yet here they are hoping one day they can own. That is the demand, everyone prefer to pay most they can just to stay.
@@JC-hl9nu --- agree JC.... it's a point everyone willfully ignores. people can buy a home in north bay or sudbury or windsor. but no..... they intentionally stay in toronto or vancouver.
You two are entirely missing the point.They can't find buyers because the prices are so high no one can afford. Because of this they aren't building as many homes thus limiting supply. Limited supply keeps prices high. And round it goes...
There is a simple solution - the government should step in an build a quota of homes.
@@DrSpooglemon -- two things. first you are wrong new homes are sold before they are built in most cases and absolutely not to having the state build homes for ppl. this is not cuba or the former ussr. thinking with a leftist mentality is partially what got us here. looking to a nanny state is a regressive way to think.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Anticipate rising home prices due to inflation, potential economic fluctuations, and Federal Reserve actions, emphasizing the need for expert financial advice amid uncertainties.
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
Sharon Marissa Wolfe has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Watching Ford swing a hammer like a 5 year old child that's never seen one before is priceless
great premiere... terrible tradesman.
It reminds me of John Keys lol
@@nickyalousakis3851 More like completely awful premiere.
@@nickyalousakis3851 Probably one of the worst Premiere's of all time. He literally put in laws to make it difficult to sue LTC homes for people who passed way from illness. Even gag orders when the army came in to help... some came out with PTSD. Not only this, he's spent millions of tax payer money to facilicate bribes. This is all out in the open.
@@user-vh8gs1sw1j -- i think that honor goes to wynn or mcguinty.... take your pick.
A lot of construction companies are engaging in profiteering. Charging huge amounts for average or poor quality homes, while seeking gov’t handouts. Slapping up cookie-cutter homes in claustrophobic subdivisions, all for huge profits.
It isn’t fair to purely blame the Gov’t.
correct, and we haven't even gotten into the suppliers and distribution companies, who have jacked up their rates for basic natural resources like lumber and concrete since covid and have refused to bring them back down to pre-covid levels. but hey, that's capitalism baby - the free market and private sector know best, right? and they do - they know best how to gouge absolutely everyone, even if they are already making record-setting profits, it's not enough, even if it means a housing crisis and cost of living crisis and inflation crisis and the economy literally falling apart - so long as they made profit in the short term, they don't care.
@@gallagherhelen Capitalism's best friend...Greedflation at its finest! But the government can put their thumb on the scale to avoid corporate greed. They don't because they're busy getting lobbyist kickback money to look away at the oh so glaring problem. It's like that in all the private sectors. So yeah, I do blame the gov't because they're supposed to be our line of defense.
What a bunch of uninformed nonsense. Construction companies, just like all businesses, produce the best products at the best price. The problem are the horrific taxes piled on top by the government that make those homes too expensive for people to buy. In addition, the high interest rates set by the government makes the financing more expensive as well, multiplying the problem. This is 100% government's fault and only happens in Canada and a handful of other countries, where the same failed policies are applied. Construction companies are not any more greedy in Canada then they are in the rest of the world.
@@antoxa.310 how naïve. Ask people in the construction industry, especially those who build cookie cutter neighborhoods, how many times they’ve been told to cut corners, cover up issues, and make due with substandard materials, then you’ll eat your words about corruption and greed.
@@antoxa.310everything you said is completely untrue conservative propaganda, enjoy fantasy land tho must be nice
Canada's entire housing market is one of the most extreme bubbles in human history, rivaling the Dutch tulip mania. This has nothing to do with interest rates, and everything to do with investors trying to squeeze as much return out of every asset as possible, to the point that it does not align with reality. We are the second largest country on the planet with a population less than the state of California. There is absolutely no real-world reason why houses should cost this much outside of rampant speculation. Some economists have calculated that Canadian home prices are overinflated by around 400%.
You got it right, but we don’t have a solution for this.
Depending on how you define urban 60%~80% of Canadians live in urban centers, so the size of the rest of the country is irrelevant. NWT, Nunavut, Yukon and the northern part of the large provinces are always going to be sparsely populated.
It's not a bubble when you have a dozen people living in basements across the GTA, tens of thousands leaving the province every year for more affordable markets in Canada and a freeze on foreign investment. There is a huge swath of people waiting on the sidelines to get into the market. There is no bubble. There is just an extreme lack of supply and miss managed demand thanks to immigration that is adding fuel to the fire. According to Canada Mortgage and Housing corporation, Canada would need to build 3.5M new homes by the year 2030 to reach affordability. Considering that is only 5+ years away and we are only building at a rate of 250K per year (generous numbers) we would need to increase our rate of construction by 150% in order to catch up. Considering Canada can't even build a single subway line in a decade I can say with confidence that this is not going to happen. Canada's housing marketing is going to continue to be unaffordable for at minimum 10+ years unfortunately.
@@Michael-pg7rv All of this is true, but only if you think in the past tense. The reasons for traditional investment in Canada are evaporating at an exponential pace. Everything changes. Including "Canada"
Hey dingdong, how much of that land is habitable and livable? Nobody wants to live in a tundra, when you look at livable land it's a very small piece.
People don’t need big mansion houses they need more smaller and cheaper houses, most couples are having 1 or 2 children if any.
But will the property taxes you pay will they reflect the Sq footage of your now smaller house?
@@thomasklimchuk441 land cost for smaller home will be almost the same as a bigger one
I'm having air for breakfast lunch and supper, I'll never have a family of my own, thanks Canada for failing everyone
Yes, but this is capitalism, and small cheap houses don't make big record setting profits for the private sector, so they don't care if there's a housing crisis - housing crisis is literally just more profit for landlords and commercial property ownership companies, why would they want to change that? they materially benefit from it, and lobby and pay off politicians and legislators to ensure that it stays that way - it's in their personal, profitable interest to make sure most canadians can't afford a home and have to rent at sky-high prices instead. banks benefit too, anyone who can just barely qualify for a loan will be in debt for most of their lives, banks will profit immensely from having most of the population in debt slavery.
Who can afford to heat these monster homes.
People WANT to own! But not everyone needs or wants a $1 million home in these cookie cutter suburbs that are paving over Ontario's precious farm land.
Doug Ford has refused to allow options beyond large single family homes & plexes. We want small 4 - 8 unit multiplexes where we can own single units! We want small one or two bedroom homes, on small lots or 2 per lot so we can afford them. There are many affordable options, but Doug Ford is more interested in demands of his developer cronies than he is in the wants & needs of Ontarians.
Sit tight, let the market crumble back to affordable prices.
@gormenfreeman499no he's doing exactly what all conservatives do, enriching his friends at the yatch club at the expense of the rest of us and our social security
those are being built everywhere.... what are you talking about? every cookie cutter area has some mix of this housing. developers know exactly what to build to fill the market at a given price point.
@@nickyalousakis3851 My point was about Doug Ford, & his refusal to allow more affordable housing because developers don't want it. Keep up, Nick:
" Ontario Premier Doug Ford has ruled out allowing municipalities to build fourplexes, despite it being one of the province’s housing affordability task force recommendations and a mandatory factor federal infrastructure funding.
“It’s off the table for us,” the premier said at a news conference on Thursday.
“You go in the little communities and start putting up four-storey, six-storey, eight-storey buildings right deep into the communities, there's going to be a lot of shouting and screaming. That's a massive mistake.
“We're going to build homes, single dwelling homes, townhomes. That's what we're going to focus on.”
From a CP24 article a couple months ago. Dofo is the problem.
@@tothelighthouse9843 -- i heard the word townhomes. those can be built in continuous rows from two to hundreds in a row. four plexes in s all communities are going to get axed in that community without question.
Canadians are tired, sick of inflation, overload immigration, potential job loss , anyone will jump buy the house today can be in trouble tomorrow. We need responsible government.
My family was poor and we lived for 2 years in what was call a "wartime bungalow" back in the early 80's. Even poor folks then could afford them. The house is still there, still lived in by someone, it was 2 bedrooms, a small kitchen/dining and a living room with unfinished basement. Nice backyard to play in, quiet neighbourhood close to school and church. Today I could build the same house for under 100 grand sawing lumber myself.
We have too many regulations, stupid rules, building code restrictions, permits, fees, on and on.
Stop building homes that sell for millions of dollars that people cant afford. This is a not enough profit for greedy developers problem that holds Canadians hostage. poilievre will protect the developers and point fingers away from the issue.
Why would they, they are for profit and they need to answer to shareholders. We are screwed since the era put real estate development to these private corps. The problem has always been there, and covid/immigration policy just exacerbated the downfall.
It's important to understand that nearly one third of the cost of building is government regulatory fees, permits, transfer/development fees, etc. I promise you it's not "greedy developers". The costs of the hard materials needed to build the homes have increased at the same rate or higher as everything else.
Builders cannot build a home for less than it costs, including their equipment, labour, insurance, all their fees/permits, taxes, etc, etc.
This is a LONG TERM problem and it isn't the fault of the builders.
We have to understand an average Canadian pays 70% of take home salary in housing after back breaking taxes. Government keeps saying income tax is lower than the US but consider 30% of mortgage is actually payment and interest for all the charges and fee l00ters in city halls and leftists of Canada extort from an honest hardworking entrepreneurial middle class Canadian (or immigrant) add to that the SIN deduction, GST, EI, education cess, trillium, road taxes, housing taxes, carbon taxes, capital gains, distribution charges (crown corporations charge more for electricity distribution than what one pays for distribution of Canadian electricity in Virginia) and its clear we live in l00tist regime controlled by WEF agents which only rewards union leaders, city halls, bureaucrats, ttc drivers, teachers union & "well connected" running all those "Not for profit" that extort taxpayer funds. Its not a question of interest rates. Is this place worth living or investing in and the clear answer is NO
you're correct - unfortunately that's capitalism baby, and the other politicians who are bought and paid for will all do the same. They will all collectively destroy this country just for the sake of short term profit. but hey, we're free under capitalism, right? private sector knows best sweetie ;)
You can’t really build a house for under 400k in materials in most provinces, plus insurance and employment wages and then a bit of profit so the owner can make some money too, As a young man in construction I say the same but as a business owner it’s impossible until prices go down and the dumb liberals let us do more logging and mining. A huge play in the cost is the wood cost because half the mills have shut down because of there dumb climate ideology.
The problem is, they`re not building affordable homes, it`s million dollar homes.
Exactly!
the problem is 1000% mass 3rd world immigration.
No the problem is that even a normal home costs a million dollars.
BINGO..!!!
New homes are never going to be affordable....they are NEW
Too many gov’t fees and land transfer taxes at civic, provincial and federal levels. It’s a money grab.
How about developer greed?
@@azhyhama9649When approximately a third of the cost of a house is government regulatory fees, development fees, permit and inspection fees, land use/conversation study requirement fees, etc,...the house is priced out of the average income-earner's range. Remove or slash the government cash-grab fees and unending redtape (which ties up capital for crazy amounts of time and is therefore additional cost). Bringing down the cost to build could be instant if governments would step back from their demand for this easy money. They don't produce anything for most of those fees. Most fees are simply a "pay to play" game, where the land owner must beg/pay for permission to use their own land.
I'm speaking as a private acreage land owner going through the process of applying for and PAYING FOR permission to build my own home. It's crazy!!!
@@azhyhama9649Yes, but government greed is much greater
@@dembipor Canada has abundant lumbar and land; the house prices don't make sense. We need a stronger and bigger country more than ever, especially with world geopolitics going downhill. I would rather have a stronger and larger Canada by relying on itself rather than defence treaties being canceled the moment another politician is being elected in one of the leading NATO countries (we have seen recently how things can go during wars).
@@dembipor "There is no such thing as "greed"". That statement is so stupid my eyes started to bleed when I read it.
Your all greedy your pricing a pre-selling unit as it was built who can afford the garbage your building. Not to many makes over 200 grand and can pay $4-5K per month not including bills and property tax. You’re making too much money on people who just want to live a descent life.
But the cost of the building material is real.
@@ryanhou162 This whole industry depending on real estate is corrupt and like parasites.
I like how you learned to spell half way through your post. 😂
@@bobwoods1302the “your” versus “you’re”? lol, noticed that myself.
*you're
Only talk about the tip of the iceberg. Who made the policy to ruin the local economy, raised inflation and support a war leading nowhere? Who made the immigration policy that caused millions to come to big cities already facing a housing shortage? Everyone is trying to find a scapegoat but refuses to look in the mirror. Try harder to find a scapegoat please! 😂
The people who voted Liebral....
Trudeau keeps blaming Covid.. but it was actually China and the WEF working together (WEF have video with China on their YT channel explaining it)
...a war?
tens of thousands of homes across the country are empty. foreign buyers and criminals buy houses with cash. take out mortgages to launder the money. once that bubble bursts the market will crash top to bottom.
So true. I have a Chinese friend who is a realtor, she said a lot of Chinese buyers all pay cash to purchase properties here
Absolutely going on I bought a home for 500k 7 years ago. My realtor was surprised when I didn't give her cash for my down payment. I asked why she was surprised she said it was the norm. I looked at her like she was wearing clown make up.
Nobody’s talking about the building supplies have gone out the roof. It’s almost impossible to quote a job because everything is more expensive expensive.
Still just made of paper drywalls
I renovated a basement 2 years ago. I look at same supplies today at Home Depot. Windows, drywall, insulation. (Lumber same price to be honest) basically everything increased 25-40% more
"Interest rates come and go." They've been at record lowest for the record longest and now the bubble is bursting.
My first home was mortgaged at 15.75 %. People these days don't even know what interest rates are....
I'm supposed to get locked into a 25 year variable mortgage on a million dollar starter home on a $60k salary at 40. and then when I'm house poor and can't afford anything you'll blame me for industries declining.
your supposed to be a slave to the banks one way or another.
Or spend your life paying off someone else's mortgage.
And when building new homes if the values go up the company "goes bankrupt" and the new sister company buys up the contracts and kicks the old contracts after people waited 4 years for their home to be build.
Lets keep bringing in millions of people from India. That will 100% help and not make all of our problems worse /s On a serious note, we should all be writing our MP's to get them to close these migration pathways and to start deporting anyone who's not a Canadian Citizen. While simultaneously making it much more difficult to apply for permanent residency and asylum There are over 5 million non Canadians in this country that's 5 million potential homes for actual Canadians.
cmon man somebody has to buy all these new million dollar homes and god knows canadians can't afford them.the only white people in those neighbourhoods used to be the realtors ( they have now been replaced by Indian's and punjabs)
We need workers to build houses.
@@bobwoods1302 we do, not seeing current immigrants moving to these roles? have you?
If you left your house you'd see. Tons of north indians are in construction, every single construction build I've seen here in Alberta has indians working on the ground.
@@InsaneDrummer99 The Canadian governments own numbers don't bare out your claim. Trades work is one of the least done jobs by new migrants from India according to federally tracked statistics. Housing builds are down and currently slowing. So this idea they are building us new homes is absolute hogwash. We bring in more then the small % of them that do trades work can build. This is also proven by publicly available government statistics.
Though I wouldn't be willing to buy one if they worked on it anyway. All the new comers I see can barely speak English or french. I have zero faith they can do math, and zero faith they can build even the most basic thing to Canadian code since they can't even read the code documents to begin with.
I couldn't imagine living that close to someone else. That's just disgusting. Lift up your window and shake hands. So glad to live in NS. The other issue is people don't need those massive homes of 3-4,000 square feet. We are living wayyyy beyond our means. It's ridiculous.
Lots of people, particularly young people, aren’t in a rush and are waiting for interests rates to drop again.
But that will boost house prices as only Condos are available in supply.
@@harpalmukesh4291 the housing market fluctuates, but in the end they always go up. There’s nothing anyone can do about that.
It's hard to purchase a million dollar starter home in a country that takes half your income in taxes.
We should’ve had a housing correction in 2008 along with the US. We lowered rates even further and then lowered rates again. Our tax policy rewards housing speculation, our building & zoning policies punish builders, our rental laws punish landlords, our monetary policy has made credit easy & cheap … the convergence of all these has led to high costs, low inventory, either 1 bedroom condos or 3000 square feet mansions
The Canadian real-estate market has to crash by 70% for prices to be close to reasonable again.
depends which area. ottawa average price for a detatched home is around 750-850k so a 33 percent drop gets us to pre pandemic levels. in toronto and vancouver a 50-70 percent drop is necessary for affordability.
Make canada affordable again.
Here is my math - assume 200,000 immigrants per year - assume 80,000 families so how many homes/apartments (rental or otherwise) are being built to house them? Now add terrible inflation numbers and consequently mortgage rates and mix in a pot.
per year? it's over a million a year.
you can tell doug has never held a hammer in his life.
They are portraying this issue like average person really care. These builder dont build for average people. Average people cannot buy when construction is booming or slumping. So as average person do I really care not really. An average young person is going to be slave to landlords for life.
F young buyers, right?
It's called supply and demand. If we build less houses then people we bring in, then we have higher housing prices. Your issue isn't with these developers but the Liberal and NDP party for bringing in 1.5m+ people a year. Printing money during covid in record numbers. As well as our unchecked and out of control immigration is the entire reason housing is unaffordable ATM. This was brought to you by the Liberal and NDP party who thought printing more money then all other Prime ministers combined was the answer to a pandemic. Then when it turned out that raised housing prices to an unaffordable level. They started allowing mass migration in the hopes it would slow wage growth of Canadians, while propping up real estate prices. All in a hope to keep our GDP from showing it was crashing. Blame the politicians who made the problem, not the builders who are our only real way out of this issue.
@@briansimerl4014they’re jealous
Whiners
@@canadianguy1955 a swing and a miss. If the conservatives win I hope you like unregulated markets and Asian investors sending prices even higher!
No more trudeau and friends
we dont need lower rates right now. we need at least a 40-50% price reduction
We do need lower rates. and a 40-50% price reduction will cripple our economy worse than weve ever seen. Think of all the people who purchased homes in the last 5 years. If prices drop by 50% they will lose everything.
@@dmarshall9927 if they cant make the payments they will loose either way
@@johnnycroat Im a mortgage broker. The housing market was expensive before rates increased. but with 2 incomes people were still able to afford the payments. Now those same people on variable rates are paying 1500- 2K more per month due to rates going up.
@@dmarshall9927 thats crazy, of course if we have to sell for less we also will buy for less
@@johnnycroat Yea, but then the sale isnt enough to pay off the giant mortgage these people took out. It will be good for the people who never bought but the vast majority of people with houses will get screwed. It would destroy our economy
HOME PRICES NEEDS TO COME DOWN, especially in Toronto.
Not going to happen.
Ferrai orices need to come down too and Manhattan prices all stuff if Value
Lol people are funny they want affordable homes
In laces that are in high demand
Prices coming down is a multi year event. We are in the early innings and expect economics to get worse in 2025. Home prices going to the moon as investors expecting are in for a rude awakening
@@Relaxlifeisshort2 Then that is what needs to be looked at. Prior to mass foreign buyers, mass immigration and corporate investors putting crushing pressure on the housing market Canadians could afford to purchase houses.
@@lcg5790 wrong not to say it doesnt matter . And that less immigration, not no immigration wouldn’t help.
People have been complaining for ever especiallyin the GTA and Vancouver
And in these mArkets it will only get worse.
Other places is a different story.
Of course....its developer and owner greed....they will never build lots of housing because it will cause a devaluation of the rental properties they own. They are people who own a place to live and dont want anyone else to.
It's called a slow implosion and it's the beginning of the end for home ownership for the average person in Canada.
then its the end of the average person in canada period...because a vast majority only keep going because of the goal to get a home...take that away and theres literally no reason to be alive anymore for them
@@kokocaptainqcDon’t worry they are replacing us with a desperate slave class who will obey.
Its the end of Canada, really...
Still many wish to have their eyes wide shut..
Oh well....
Beginning of the end? It ended 4 years ago. The average middle class person is priced out of the housing market permanently. Unless you want to move out to the middle of no where.... its been over for a while now.
@@MikeyPaperPost national UN state incoming. Faster every day.
What happened to the 6 million Indians and Pakistanis Justinder Trudie brought to CANINDIA lat year?
Housing practically doubled over the pandemic; at least let it correct 25% because it's a joke and the reason why I'm no long proud to be Canadian.
gov. caters to developers and not average citizens
Government is occupied and has no national pride or interest.
govt doesn't build homes developers do. the more they make the more the supply available to the market. developers can only sell a home on what the market will bear.
Look around your neighborhoods….theres no housing shortage!
It costs what it costs to build a home. Builders are not going to work for 6+ months building a home then sell it at a loss. When that happens they stop building, existing homes become scarcer to a growing population, demand grows, then house prices increase. The only way to lower the market is to lower the costs to build. Material suppliers can't be gouging, and goverments need to make it cheaper to develop (cut taxes and red tape) and cut taxes on resale homes (property transfer taxes). It would help if real estate fees were tempered too.
The housing crisis has very little to do with supply, demand, or the current BoC rate. It has everything to do with 20yrs of monetary devaluation.
I don't believe the interest rates are high especially in comparison to the 80s. It's a fact that nose homes are 40 to 60% over-inflated in value
The value is what people are willing to pay. That's the free market.
The housing price to income ratio is also lower than now though. It takes a shorter duration to pay off their debt back then.
Taxes are much higher all the way around.
Homes in the 70s and 80s were much smaller. Two-car garages were rare, even in Winnipeg no garage was common.
It's worse in BC where investors are unloading real estate due to taxes and incredibly restrictive rental laws. I've never seen a spring market so slow. Aside from investors, many hope to downsize before the principal residency tax drops as most homes here are over $1 million.
Good, I hope everyone from the developers, builders, realitors, banks, and the saps that overpaid for their homes. Get hosed financially in a big way.
Having a home should be a fundamental human right, especially in a so-called first world G20 country. Not a financial bargaining chip. The greed has gotten out of hand over the past 15 years. No one from the middle class to above the poverty line can afford a mortgage, let alone rent. Tent cities and homlessness are skyrocketing. While the rich just get richer giving 2 Fs.
Homes should be very affordable, and mortgages should be controlled like rent control. Max of .5 to 1% value increase per year. Not houses tripling to quadrupling in the last 10 years.
Even homes in bum F nowhere with no sustainable jobs are going for 280 grand and up. Even in small provinces like the Maritimes homes in larger centers are now approaching half a million mark with low paying jobs only available. How the hell can we continue this to happen. At this rate, other than the 1 percenters, we all will be living in tents or on the street. Sickening.
It's not a slump if it's an over inflated bubble of nonsense. Prices dropping in half t0 3 quarters is 👍 good
Finally, some good news. House prices are coming down to reality. It’s about time!
Our governments are not only allowing but in some areas even promoting and actively encouraging the demand pressure to overwhelm the housing supply. Why?
In the he USA, you can lock into a mrtwge for 20-30 years, not 5. Banks are a oligopoly.
Interesting how "developers" are the ones providing answers instead of the government officials. That itself is a sign of the problem.
In a few years all you’ll need is a signature and a pulse to own a house.
2012 prices is what the fundamental reality is for GTA. Anything more than that is a bubble.
ok But I don't want a dwelling that pops up like a mushroom.
Immigration madness
K4lergi plan
The Liebrals say we have a "low population", and more people must come to "keep the country going"..
@@ENIGMAXII2112and nobody born here can afford kids so we will need India to replace our population. Happy Diwali everyone
@@ENIGMAXII2112 cities are crowded already
Oh they destroyed Canada, all east indians taking up the jobs now.
People salary gone as taxes, rent, grocery, utilities, car & car insurance......$1000 left at end of month🤪🤪🤪🤪🤪🤪🤪🤪🤪🤪
When unionized electricians and plumbers cost the company $170,000 including all the benefits, pension, wages, union costs. No wonder it's time to stop construction. Both labour and materials are way too high. Crazy
Build build build.... and NO BUYERs ... this is what happens when government gets involved...
They're having the same issue in the USA. 3 major developers are beating the s&p500 by wide margins
Get the interest rates up to 6 or 7% and leave them there. Cut immigration by 90% and prices will come down dramatically.
Lot of my Indian relatives are waiting in line to buy investment properties when that happens
This is funny. I don't even live in your country and I own rental property there. Thanks for not blaming me lol.
Poor developers!! Poor poor developers! How about smaller homes? Do we really need 5 bedrooms, 5 bathrooms ? Too bad - purchasers will be happy with less.
That’s the plan. They want you paying mansion prices for tiny properties.
do you really think developers don't know which type of homes to build for the market?
House prices are to plummet
The market is going to get so saturated
People's mortgages are about to renew
House prices will come back down real fast
Build affordable apartments not houses
We have to understand an average Canadian pays 70% of take home salary in housing after back breaking taxes. Government keeps saying income tax is lower than the US but consider 30% of mortgage is actually payment and interest for all the charges and fee l00ters in city halls and leftists of Canada extort from an honest hardworking entrepreneurial middle class Canadian (or immigrant) add to that the SIN deduction, GST, EI, education cess, trillium, road taxes, housing taxes, carbon taxes, capital gains, distribution charges (crown corporations charge more for electricity distribution than what one pays for distribution of Canadian electricity in Virginia) and its clear we live in l00tist regime controlled by WEF agents which only rewards union leaders, city halls, bureaucrats, ttc drivers, teachers union & "well connected" running all those "Not for profit" that extort taxpayer funds. Its not a question of interest rates. Is this place worth living or investing in and the clear answer is NO
well said
This is a very poor video by Global as it does not effectively identify the causes of the problem but rather throws all possible explanations on the table as journalists who do not know a subject usually do. Check videos by professionals of the industry, they clearly indicate that investors have pulled out of the investment condo industry and that those type of units (typically in the downtown core) are not selling. Nobody is interested in those overpriced and very small units, and many condo projects have as a results been delayed or put on hold. Other types of properties are not affected at this point, as it is essentially an investor crisis.
Cut back significantly on immigration and only accept high level student visas such as potential doctors and so forth and stop trying to justify little bungalows and normal homes for prices over 500k-1 million dollars which no one in this country can actually afford outside of the richest.
Everything in a slump in Canada. Canada is in a depression.
I said that 4 years ago.
You forgot to mention that there are no workers lining up for construction jobs😮
weird because there's linups for every retail job in toronto. I know someone who lives with immigrant roommates and 2 are on work visas for home construction, the work is pretty back breaking and the pay is just ok.
Beside interest & construction costs, another issue not talked enough… Housing policies… When governments kept adding policies that favor tenants and punish landlords, investors will leave… Buyers & tenants love this, but there’ll be even less housing in few years, then they’ll complain again…
When interest rates drop to almost nothing, people were able to qualify for more. Then it became a supply and demand issue. More demand than supply meant that people could offer more for houses because they qualified for more, thus the bidding up of house prices. This is a bank of Canada issue, mass population growth issue, and red tape from government for building permits and fees issue.
Lol, rates aren't going back to 2%, no matter how much you need them to.
Remember when you assumed rates wouldn't go up?
You were wrong.
And you're wrong again now.
@@beautifulafrica4596 I’m not sure who you are referring to when you said “you”. I personally think reducing interest rates to 2% was a bad move. I personally don’t think interest rates will go down to 2% again. I feel bad for those who are having to renew their mortgages in the next year or 2, to find that their payments have doubled or they don’t qualify to renew their mortgage at the current rate due to their income.
Get rid of WSIB!!! I have insurance and have paid 100’s of thousand of dollars for nothing
Calm down people… it has to get worse before it gets better. The only way for construction prices to drop is when demand for goods drops. It’s time for the corporations to start realizing that their massive profit margins are unsustainable
...do you really think that, after historical-record-setting profits over covid, and refusing to drop prices or stop their rampant speculation post-covid, that massive companies/corporations/landlords/asset management firms/etc. will just say "oh well, I guess the gravy trains over boys, time to give up all these profits"? They will destroy the economy, destroy living standards, literally destroy the country before they will give up a single dime, and when the country is in tatters and basic services are failing and food is unaffordable and there are riots in the streets, they will take all that accumulated wealth, liquidate ay remaining hard assets, and simply LEAVE (for europe, or even asia, or wherever their money is good, which is everywhere). Capital is global - it has no loyalties, no national pride, and it doesn't care what destruction it causes along the way to shot term profits.
profit is determined by many things. especially so with supply and demand.
@@nickyalousakis3851 so there needs to be a slump until supply costs drop. When it does and investing becomes profitable, investors will be back.
It’s just ridiculous how all the media folks act like they’re surprised there’s a slump. Do they think the corporations will voluntarily lower their profits when demand is high? 😂
This is all part of the process, unfortunately, some people will need to suffer. But, those people suffering had invested beyond their means and should’ve known that there is something called RISK when investing
@@nickyalousakis3851the most supply of trees, the most supply of land ,the most affordable houses.? The system isn't broken, it is built this way.
Ford, the "open for business" nitwit strikes again.
Contractors going to be rich to fix all these garbage homes in the future
Quality of construction is dropping like a rock. They want to cram more people into smaller areas.
We need cheaper homes, the government needs to balance the budget. We have too much crime and war.
After 9 years of Trudeau, more people than ever can’t afford home.
Building 100s of 1000s boxes out of paper!!!
New houses are built so tough that if i got angry enough and yelled at it, it will collapse
Interest rates will be going back up, due to slumping dollar, stagflation, 80% of world population dropping the usd. Usa is going protectionist mode, will cut off external manufacturing to bring jobs back to usa. This is just the start of a decades long depression, add in excess immigration with no jobs, housing, for them, and what was planned will fall into place. Division among the people, who will not be able to unite to fight the enemy, due to infighting and bickering. If you did not see this coming, then you are wilfully blind and deluded. Voodoo economics. Now you understand why interest is forbidden in most religions, creating money, which was a representation of labour, to now being created out of thin air is the root cause. With greed, gluttony also showing their evil faces.
It's a damn shame when actual Canadians can't even a buy a home in their own country of birth.
Recession is when your friends and family have hard times a depression is when it hits you 😢
For once, Id love to hear something getting better, not getting worse before getting better.
To make the new home affordable, every price needs to go down. Starting from Interest rate, material price and labour ( plumbers, electricians charge almost $125-$150/hr), you can guess how much framers and other contractors charge.
Sky high immigration is a huge factor of this and so many other issues. Thank Justin and jagmeet for that.
Price of building materials is artificially inflated to create lack of affordability.
Coupled with greedy government regulations.
Plywood homes are sold for 1 million. What a joke..
2 condo complexes built in my area, no one is renting, they are way to expensive and small.
Why was it expensive in the first place? Recall those bills that were printed and gave away for loans. Time to buy them back yet?
Reducing interest won't help anyone.
On 2025 apr, cost of a house will drop to 60%. People don't buy don't put yourself in a bad situation. Wait
15 yrs ago real estate prices detached from wages. Anybody home? Nobody was ringing the alarm bells a decade ago? 10-15% inflation/yr.... and a big part of the problem and costs are the gov't's land transfers taxes, GST, and development fees! 20-30% of the cost is taxes. The developers themselves are going to have to adjust too. Sorry, no more bloated profits for the developers!
This sector needs a huge correction and we are only half way through now.
Anybody buying now should know that the prices are 24% above the long term trend line. So if we actually see a real correction it could easily be 27-30% downside from here.
Canada these days just lurches from one crisis to the next, while displaying a staggering lack of imagination, leadership, and entrepreneurial spirit. We’ve institutionalized mediocrity and rewarded apathy, so every problem stumps us and fuels hopelessness. Not a country we can celebrate despite politicians’ histrionics and empty gestures.
A 50 year old cottage in wasaga beach that was probably 60k 20 years ago is now selling for 600k... people arent making 10× more income...and thats not even a home!
Banks don't want to lose.. they have keep price high and construction slow... affordable banks lose...
The fckn wooden homes. Ridiculous. We should build our own houses. If no one purchase these houses, price will adjust.
All I see around Ottawa, in the Ontario side, all cookie cutter oversized and over priced houses meant for your 1960s car-centric famlies. Sure, let developers save cost with similar models of homes, but let developers build an arrangement of different habitational units to allow for density, mobility and natural growth.
It’s never mentioned that in Toronto you pay double land transfer tax. On $1.2 million dollar home you would pay $41,000 up front. How is that affordable?
Maybe if you'd build houses that the lower middle class can afford, instead of 2 story homes with garages. Like I get, the builder wants to make what will sell for more dollars.. but it's my impression that we're at a point now where it would make logical sense to build cheaper homes that people can add to in the future.
This is a Canadian Federal government problem .. not just Ontario and Ford can't fix what needs to be fixed . That's Trudeau.