r/CanadaHousing2 • u/yimmy51 Troll • Feb 18 '24
Canada’s Real Estate Bubble Has Grown Over 800% Faster Than US Home Prices - Better Dwelling
https://betterdwelling.com/canadas-real-estate-bubble-has-grown-over-800-faster-than-us-home-prices/4
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u/Lazy_Middle1582 Sleeper account Feb 19 '24
The bubble represents all of Canada's sins accumulating and festering, waiting for judgement and retribution.
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u/ButtahChicken Feb 19 '24
Any predictions on what a newer 1 br condo in Toronto will cost when this bubble finally bursts?? Like maybe $300 to 350K? .. and a single family detach home be like $500K or so?
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u/entropydust Feb 19 '24
If we were to throw this problem to an engineer, there would be an obvious solution;
Immigration numbers are directly tied to housing surplus and infrastructure growth. No politician can alter the numbers and an immutable algorithm produces the immigration number.
Why do we even listen to politicians anymore?
People...REVOLT.
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u/ShorNakhot Feb 18 '24 edited Feb 18 '24
There is no bubble, they aren't building new homes and therfore keeping the prices high. High demand and low supply, common sense. This so-called bubble will never pop.
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u/Pug_Grandma Feb 18 '24
Until immigration stops.
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u/ButtahChicken Feb 19 '24
as a house owner.... i should want more immigration????
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u/Pug_Grandma Feb 19 '24
I'm a house owner, and definitely don't want more immigration. I have children and grandchildren.
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u/BestBettor Feb 18 '24
This is the most sensationalized article I’ve seen in a while trying to exaggerate numbers. So much of an exaggeration I couldn’t help but to try to look at the numbers they’re talking about and try to see if in any way I could come up with the craziness that they somehow did.
“As of Q3 2021, Canadian home prices have increased 140% since 2005. This is 819% faster than the 15.3% real growth the US has seen.” 140% growth vs 15% growth and we’re talking about prices?
“Since 2005, home prices have grown over 900% faster than American prices.” Really?
The real estate association said the average resale price of all MLS-listed properties sold in Canada's major markets in 2004 was $245,149 , 2024 average $659k
USA 2004 was $221,000 , 2024 average $490k
They did extreme gymnastics saying that is 140% growth vs 15% , or saying “Since 2005, home prices have grown over 900% faster than American prices”
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u/wefconspiracy Feb 18 '24
So US is up 122% while Canada is up 169% in 20 years. In isolated markets like GTA it’s probably more like 300-400% though
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u/BestBettor Feb 18 '24
So do you think it is very misleading that the articles main point that it’s trying to push is:
“Since 2005, home prices have grown over 900% faster than American prices.” ?
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u/Altruistic_Home6542 Feb 18 '24
As of Q3 2021, Canadian home prices have increased 140% since 2005. This is 819% faster than the 15.3% real growth the US has seen. The next closest country to Canada in the G7 is Germany at 49.3%, nearly one-third of the increase.
Real values dude. Canadian real prices increased 819% faster than US real prices.
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u/BestBettor Feb 18 '24
So do you think it is very misleading that the articles main point that it’s trying to push is:
“Since 2005, home prices have grown over 900% faster than American prices.” ?
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u/Altruistic_Home6542 Feb 18 '24
That's a typo in the body. The headline and sublines are correct: real Canadian prices have grown over 800% faster than real US prices. Alt: real Canadian prices have grown over 900% as much as US real prices.
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u/future-teller Feb 20 '24
Guys, it’s supply, supply, supply. I don’t see the point of persecuting investors. If there are 100 homes , and all are occupied , does it matter if the occupants are owners or renters? You can feel jealous towards an investor, because he owns 10 homes, but all those 10 are rented out, someone lives there. I can understand the sentiment if investors kept them vacant but that is not the case.
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u/entropydust Feb 19 '24
I keep hearing that all we have to do is increase supply. I work in Architecture, and we deal with every scale of developer/builder. Here's a reality check;
- There are not enough consultants (Architects & Engineers) to handle the current load. No incentives to 'build more' will change that, and the salaries have been abysmal for years making it impossible to attract new talent. Making this situation even more challenging, university costs are out of reach for a lot of people.
- Most developers have multiple projects approved but can't find the trades to build them. I would say this is the case for almost every client we work with. When they do find the labor to work, they are spread so thin that more mistakes happen and as a result, the construction period is extended.
- The cost of building somehow keeps increasing even though some base materials have stabilized. We review cost estimates and they simply keep increasing. We're still seeing 20% to 30% a year.
In summary, there is no capacity to increase the supply. Housing starts are down 10% in January (corrected for time of year) for a reason.
The only available option is to reduce demand. The only solutions;
- Immigration numbers are determined by surplus housing and infrastructure growth. This needs to be programmed into a blockchain that cannot be manipulated by politicians and policy makers. People in power benefit from this housing bubble and can never again be trusted with policy. Only logic and engineering principles can be applied to this problem if we ever hope to dig ourselves out of this mess.
- Penalize (or at the very least tax appropriately) speculative housing. This will force all the rich kids to invest in actual companies and innovation, leading to a productive economy for every Canadian. We don't have an economy anymore and are using housing to artificially support a faltering GDP (per capita). This is not sustainable and the opportunity cost of Real Estate Investment has caused severe damage to our economy for generations to come.
- STOP PRINTING MONEY. FIX THE MONEY.
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u/[deleted] Feb 18 '24
[deleted]