4 ms·

What are the causes? The article doesn’t explain.

by aborsy 5y ago

ewalk153 5y ago
Speaking for Montreal here: there is a lot of demand chasing a limited supply. I’ve seen prices increase by ~30% in my neighborhood over the past 3 years.
- betaby 5y ago
  And neither of the mayoral candidates propose anything actionable. Current elections are disappointing even before results are known.
Factorium 5y ago
Immigration of 400,000 people annually. The Government has announced it will increase immigration levels: https://www.cicnews.com/2020/10/canada-to-release-2021-2023-immigration-levels-plan-1016133.html https://www.cicnews.com/2020/10/canada-to-release-2021-2023-... Drives down wages, drives up asset values. Great for the elite. Furthermore, the new arrivals (from 2nd/3rd world countries) don't complain: they're happy just to be there.
- msie 5y ago
  I don’t see how immigrants from 2nd/3rd world countries are directly affecting prices. You said yourself wages are down.
  - betaby 5y ago
    By increasing demand?
  - Factorium 5y ago
    Three generations go into one house, if you're wealthy. If you're poor, in Australia its not uncommon to have a 3-bedroom house with 20 migrant men, who hotbunk and rotate every 12 hours. This is the dismal reality of mass immigration.
    - ganeshkrishnan 5y ago
      Immigrants is Australia are not the same as in Canada. Also most all Aussies (and evident with your tone) are rabidly anti-immigrant blaming everything and anything on immigrants. >its not uncommon to have a 3-bedroom house with 20 migrant men These are probably workers, not immigrants. Also, if immigrants were the problem, house prices would be going up when immigration was at all time high not when immigration is nearly zero during the pandemic. House prices are going up because interest rates are low. They will stagnate when interest rates go up regardless of what the immigration is. I really despise reading thinly(?) veiled xenophobic comments on HN.
  - cmrdporcupine 5y ago
    Canada doesn't generally admin immigrants who aren't coming with substantial investment or education. Many are coming here with enough $$ to at least field a downpayment.
    - ganeshkrishnan 5y ago
      People's debts have been going up, interest rates have been lowering, credit card debt is at all time high, gdp to household debt is at all time high, number of investment houses to person is at all time high, immigration has crashed for last two years. But sure, the problem is immigration.
      - cmrdporcupine 5y ago
        No, I actually agree with you. I don't think the cause of housing price inflation is immigration. I was just commenting on the parent's point implying that immigrants would be poor/lower income.
  - wheelinsupial 5y ago
    The housing statistics program shows that established immigrants on average own more expensive housing than Canadians (Toronto being the one exception). The newly immigrated on average own less expensive housing than Canadians. https://www150.statcan.gc.ca/n1/daily-quotidien/210318/dq210318b-eng.htm https://www150.statcan.gc.ca/n1/daily-quotidien/210318/dq210...
refurb 5y ago
Home ownership rates in Canada are among the highest in OECD countries. Home ownership rates in the 25-44 age range are higher now than 1999.[1] The government has several programs to “make housing more affordable” which just increases prices. Latest is a special $40k tax exempt account to grow your down payment. Government will also take an equity stake for lower income buyers. Parents are shoveling money at their kids for down payments because “housing only goes up” and “its now or never”. Average “gift” is $180k in Vancouver for first purchase and $340k for “upgrade purchases”.[2]. Canadians as a whole are shoving cash into real estate like coal into a locomotive. [1] https://www150.statcan.gc.ca/n1/pub/75-006-x/2019001/article/00012-eng.htm https://www150.statcan.gc.ca/n1/pub/75-006-x/2019001/article... [2] https://biv.com/article/2021/10/vancouver-parents-give-first-time-homebuyer-kids-180k-average-cibc https://biv.com/article/2021/10/vancouver-parents-give-first...
- betaby 5y ago
  Not really, see https://www.oecd.org/els/family/HM1-3-Housing-tenures.pdf https://www.oecd.org/els/family/HM1-3-Housing-tenures.pdf Detailed picture is even less optimistic if one reads the details. Also grouping 25-44 is not very helpful. Like 25 years old is fresh from the university and 44 is a middle aged group.
  - refurb 5y ago
    My link goes in age groups 25-34 and 35-45. Both have higher home ownership levels. And I’m not sure what your link shows? It looks at homeowners only?
    - betaby 5y ago
      Homeowners breakdown with paid/unpaid mortgages. Which is quite interesting. Ownership with a life long mortgage is not that good sounding thing. Regardless, it still shows what Canada is in fact not even in the first half for home ownership in OECD.
      - sokoloff 5y ago
betaby 5y ago
Demand is high. Way higher than supply. Canada has the fastest growing population (in %) in the developed world. Add here zoning and you get ... any Canadian city with the exception of Calgary and Edmonton.

What are the causes? The article doesn’t explain.

by aborsy 5y ago

What are the causes? The article doesn’t explain.

Speaking for Montreal here: there is a lot of demand chasing a limited supply. I’ve seen prices increase by ~30% in my neighborhood over the past 3 years.

betaby 5y ago
And neither of the mayoral candidates propose anything actionable. Current elections are disappointing even before results are known.

Factorium 5y ago

Immigration of 400,000 people annually. The Government has announced it will increase immigration levels: https://www.cicnews.com/2020/10/canada-to-release-2021-2023-immigration-levels-plan-1016133.html https://www.cicnews.com/2020/10/canada-to-release-2021-2023-... Drives down wages, drives up asset values. Great for the elite. Furthermore, the new arrivals (from 2nd/3rd world countries) don't complain: they're happy just to be there.

msie 5y ago
I don’t see how immigrants from 2nd/3rd world countries are directly affecting prices. You said yourself wages are down.
- betaby 5y ago
  By increasing demand?
- Factorium 5y ago
  Three generations go into one house, if you're wealthy. If you're poor, in Australia its not uncommon to have a 3-bedroom house with 20 migrant men, who hotbunk and rotate every 12 hours. This is the dismal reality of mass immigration.
  - ganeshkrishnan 5y ago
    Immigrants is Australia are not the same as in Canada. Also most all Aussies (and evident with your tone) are rabidly anti-immigrant blaming everything and anything on immigrants. >its not uncommon to have a 3-bedroom house with 20 migrant men These are probably workers, not immigrants. Also, if immigrants were the problem, house prices would be going up when immigration was at all time high not when immigration is nearly zero during the pandemic. House prices are going up because interest rates are low. They will stagnate when interest rates go up regardless of what the immigration is. I really despise reading thinly(?) veiled xenophobic comments on HN.
- cmrdporcupine 5y ago
  Canada doesn't generally admin immigrants who aren't coming with substantial investment or education. Many are coming here with enough $$ to at least field a downpayment.
  - ganeshkrishnan 5y ago
    People's debts have been going up, interest rates have been lowering, credit card debt is at all time high, gdp to household debt is at all time high, number of investment houses to person is at all time high, immigration has crashed for last two years. But sure, the problem is immigration.
    - cmrdporcupine 5y ago
      No, I actually agree with you. I don't think the cause of housing price inflation is immigration. I was just commenting on the parent's point implying that immigrants would be poor/lower income.
- wheelinsupial 5y ago
  The housing statistics program shows that established immigrants on average own more expensive housing than Canadians (Toronto being the one exception). The newly immigrated on average own less expensive housing than Canadians. https://www150.statcan.gc.ca/n1/daily-quotidien/210318/dq210318b-eng.htm https://www150.statcan.gc.ca/n1/daily-quotidien/210318/dq210...

refurb 5y ago

Home ownership rates in Canada are among the highest in OECD countries. Home ownership rates in the 25-44 age range are higher now than 1999.[1] The government has several programs to “make housing more affordable” which just increases prices. Latest is a special $40k tax exempt account to grow your down payment. Government will also take an equity stake for lower income buyers. Parents are shoveling money at their kids for down payments because “housing only goes up” and “its now or never”. Average “gift” is $180k in Vancouver for first purchase and $340k for “upgrade purchases”.[2]. Canadians as a whole are shoving cash into real estate like coal into a locomotive. [1] https://www150.statcan.gc.ca/n1/pub/75-006-x/2019001/article/00012-eng.htm https://www150.statcan.gc.ca/n1/pub/75-006-x/2019001/article... [2] https://biv.com/article/2021/10/vancouver-parents-give-first-time-homebuyer-kids-180k-average-cibc https://biv.com/article/2021/10/vancouver-parents-give-first...

betaby 5y ago
Not really, see https://www.oecd.org/els/family/HM1-3-Housing-tenures.pdf https://www.oecd.org/els/family/HM1-3-Housing-tenures.pdf Detailed picture is even less optimistic if one reads the details. Also grouping 25-44 is not very helpful. Like 25 years old is fresh from the university and 44 is a middle aged group.
- refurb 5y ago
  My link goes in age groups 25-34 and 35-45. Both have higher home ownership levels. And I’m not sure what your link shows? It looks at homeowners only?
  - betaby 5y ago
    Homeowners breakdown with paid/unpaid mortgages. Which is quite interesting. Ownership with a life long mortgage is not that good sounding thing. Regardless, it still shows what Canada is in fact not even in the first half for home ownership in OECD.
    - sokoloff 5y ago

betaby 5y ago

Demand is high. Way higher than supply. Canada has the fastest growing population (in %) in the developed world. Add here zoning and you get ... any Canadian city with the exception of Calgary and Edmonton.