3 ms·

I don't think this is correct and the other person who responded to you seems to have the right idea. Look at San Francisco, my friends and coworkers are renti

by vecinu 10y ago

I don't think this is correct and the other person who responded to you seems to have the right idea. Look at San Francisco, my friends and coworkers are renting/buying crappy 1943-built, non-renovated 1br units that cost $3k to rent or $700k to buy. They could afford to throw out some more money for something slightly better but it's already a lot of money and pricing everyone out.

sanswork 10y ago
Right and in San Francisco there is a ton of people making around the same amount as your friends likely which means there is a lot of competition in their demographic. Now look at the houses priced $10-20m. If you can afford one of those are you going to start buying up the $1m stock because you can't find the one you want or are you going to build the one you want elsewhere?
- vecinu 10y ago
  "San Francisco doesn't allow new construction." as the other poster said, so you're going to buy up the $1m stock of houses. I also think this "competition" is artificial as a lot of people are signing 30 year mortgages but I highly doubt their salaries will continue growing or even staying at the level they're at now. Most folks aren't spending within their means.
aianus 10y ago
San Francisco doesn't allow new construction. Toronto, on the other hand, is filled with glass 40+ story condos constructed in the last 10 years and there are many more being constructed all the time. We can keep building and exporting new condo units to rich foreigners indefinitely, no different than Boeing constructing and exporting new 787s.
- vecinu 10y ago
  Except by "exporting" those units to foreigners you're not allowing communities to build and that's why you're seeing a huge divide in Toronto between folks. When I lived there, I felt there was a lot of hidden hatred that won't be painfully obvious to outsiders until something goes really wrong with the economy/foreign policy.

by vecinu 10y ago

sanswork 10y ago

Right and in San Francisco there is a ton of people making around the same amount as your friends likely which means there is a lot of competition in their demographic. Now look at the houses priced $10-20m. If you can afford one of those are you going to start buying up the $1m stock because you can't find the one you want or are you going to build the one you want elsewhere?

vecinu 10y ago
"San Francisco doesn't allow new construction." as the other poster said, so you're going to buy up the $1m stock of houses. I also think this "competition" is artificial as a lot of people are signing 30 year mortgages but I highly doubt their salaries will continue growing or even staying at the level they're at now. Most folks aren't spending within their means.

aianus 10y ago

San Francisco doesn't allow new construction. Toronto, on the other hand, is filled with glass 40+ story condos constructed in the last 10 years and there are many more being constructed all the time. We can keep building and exporting new condo units to rich foreigners indefinitely, no different than Boeing constructing and exporting new 787s.

vecinu 10y ago
Except by "exporting" those units to foreigners you're not allowing communities to build and that's why you're seeing a huge divide in Toronto between folks. When I lived there, I felt there was a lot of hidden hatred that won't be painfully obvious to outsiders until something goes really wrong with the economy/foreign policy.