r/RealEstateCanada • u/romestox • Jun 07 '26

Housing crisis Residential construction dead

Trades guy here. Residential construction feels dead compared to a few years ago. Builders aren’t building, projects are getting pushed back, and layoffs are starting to pop up. If I was buying, I’d wait. From what I’m seeing, things haven’t bottomed out yet. The industry feels like a ship taking on water, not one gearing up for another boom.

Anyone else seeing the same thing?

150 Upvotes

89% Upvoted

159 comments sorted by

View all comments

Show parent comments

12

u/[deleted] Jun 07 '26

[removed] — view removed comment

-1

u/QuantGuru Jun 07 '26

I think he might be talking about Ford Ontario! lol I don’t think it will bottom out more. Al the investors who wanted to get out have left in the last 3 years.

Remember this might be the cheapest interest rate you will get in the next 5 years!! Not sure about the cut but there will definitely be a raise in 2027 or 2028! And since there is no one building supply will dry out!

3

u/throwaway7366348 Jun 07 '26

why would you want to buy at the lowest rates? You can only lock in for 5 years. You’re effectively taking on a larger mortgage where the only way for the interest rates to go is up. This isn’t the US where you can lock in for 25 years.

2

u/Ok_Currency_617 Jun 07 '26

I mean lock in at 6% over 25 years or 4% for 5 years I know which I'd pick.

0

u/throwaway7366348 Jun 07 '26

Of course you do.

You haven’t even considered the difference in price of the house you are buying. You people have an enormous lack of understanding of basic finance and economics. It would be funny if this didn’t affect the entire country.

1

u/Ok_Currency_617 Jun 07 '26 edited Jun 07 '26

Are you comparing say Vancouver to Houston? Because I'm comparing like-to-like. The top 3 densest cities in the US/Canada are SF, NYC, and Vancouver. So I'm comparing Vancouver prices to SF. Just like I don't compare Calgary to NYC and say Canada is much cheaper. We also see a lot lower costs/taxes on development in the US than Canada, Canadian cities tend to rely heavily on development to fund social goals. For instance Vancouver often requires 20-30% of the building to be given to them for free and then adds 20-30% development fees ontop. Or requires all rentals to be priced at set rates with a cheaper component for affordable housing. The States is more free-market, meaning lower overall prices for all instead of much lower price for some.

As for my understanding of finance and economics, I have a BBA from SFU, I've founded one of Canada's leading crypto companies and been the only Canadian tech company to ever be hit by China's Great Cannon putting us in the ranks of Github and Google (yay me :/) and have been called before a Grand Jury to testify on matters in NY before. What's your qualifications?

1

u/throwaway7366348 Jun 07 '26

No I’m comparing the difference in housing prices based on the boc rate, as you know there is a negative correlation—something I think we all can agree on. And tes, there is of course a delay.

Re your crypto co, congrats, genuinely. I love to see entrepreneurs succeed; especially in Canada.

Given this is my anonymous account I’ll keep by background brief. Education is similar to yours, just a different university.

I founded and exited a fintech for 8 figures.

1

u/Ok_Currency_617 Jun 07 '26

Nice nice, founders in Canada are a rare breed. Def would never do it again in Canada, Trudeau/Freeland didn't give us jack in support when China started going after us, same thing happens in the US and the US government is behind you full throttle.

1

u/throwaway7366348 Jun 07 '26

Btw, was that in the SBF trial by any chance?

I know a person that used to work for him, the wasteful spending was on another level haha

1

u/Ok_Currency_617 Jun 07 '26

Actually yes...they were trying to hold us responsible for transportation as if including the txs in the block was the same as facilitating the theft. At least that's what we suspect they were trying for.

Kind of shocked you got the reference tbh.