Cities like Vancouver and Toronto talk a big game about the housing crisis, but they actively rig urban environments to be unaffordable
Canada seems like a weird place to have a housing unaffordability crisis: We have virtually unlimited land and plenty of trees and gypsum mines with which to build them. Here are some of the entirely manmade reasons you can’t afford a house in Canada right now.The story goes thusly: Legions of foreigners picked up vast swaths of the Canadian housing market as investment properties, bidding up prices and elbowing out an entire generation of would-be buyers.
Critics of this notion will often point out that only 10 per cent of the Vancouver housing market is owned by non-residents. However, given that only a small fraction of a city’s housing market will come up for sale in a typical year, even a moderate amount of outside cash thrown into the mix can tip the scales into the realm of $1 million teardowns. Stock prices, for instance, are routinely sent into the stratosphere by buyers bidding up a small fraction of a company’s available shares.
“While many downplay this factor , Economics 101 will tell you that the marginal buyer sets the price,” wrote BMO Chief Economist Douglas Porter in a 2016 report. Screenshot from VanFun.com, a website designed to connect Chinese buyers with Vancouver real estate. When non-resident demand for a scarce commodity is strong enough to spur the creation of sites like this, it’s safe to assume it’s a factor in unaffordability.Nevertheless, it would be wrong to characterize foreign capital as the singular factor blowing up the price of Canadian real estate.
New Zealand, for instance, maintains an outright ban on any foreign ownership of an existing property within the country. This means that if you’re a non-resident who wants to live amongst Kiwis (such as
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada routs Colombia at AmeriCup, wins Group A with perfect record - Sportsnet.caKayla Alexander had a game-high 14 points and nine rebounds as Canada remained unbeaten at the FIBA AmeriCup women's basketball tournament with a 74-40 win over Colombia on Tuesday.
Read more »
International women’s rights advocates call on Canada to hold Pornhub to accountWomen from around the world join NDP ethics critic Charlie Angus to call on Canada to apply existing laws to hold tech giants like Pornhub to account
Read more »
Western premiers want Ottawa to present detailed Canada-U.S. border reopening plan this weekFederal gov\u0027t has been deciding on monthly basis whether to renew restrictions at Canada\u002DU.S. border, with current order due to expire Mon.
Read more »
Though path to medal goal dealt massive blow, Canada remains steadfast - Sportsnet.caThe AmeriCup is a convenient stepping stone on Canada’s path towards the podium in Tokyo. While that path seems more difficult after Natalie Achonwa's injury, the Canadian women’s national team remains steadfast in their goal of leaving Tokyo with a medal.
Read more »
Canada excoriated as racist failure during farewell speeches by departing MPsTwo outgoing MPs blast Canada as racist during official farewell speeches
Read more »