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"Canadian economy is almost entirely dependent on real estate" This is a myth, real estate makes no contribution to (ironically) the Real Economy. Think about
by ClumsyPilot 5y ago
"Canadian economy is almost entirely dependent on real estate"
This is a myth, real estate makes no contribution to (ironically) the Real Economy.
Think about it, if rents in London double, then the % of GDP in real estate doubles! Everyone's life has just gotten worse because they have to earn money elsewhere and pump it into real estate whether they like it or not.
The greater is your housing shortage, the more the people are suffering, the greater is the share of realestate in the economy.
It affects you negatively even if you own a house, you pay someone's rent every time you need a plumber or buy a coffee.
The housing shortage is a giant vampire squid sucking the first world dry. i am not a PhD economist, but institutional investors are definately contributing to the problem.
- WestCoastJustin 5y agoCurrently, more than 10 per cent of Canada’s GDP is derived from residential real estate activity: renovations, ownership transfer costs and real estate commissions. [1] [1] https://nationalpost.com/news/canada/canadas-unhinged-housing-market-captured-in-one-chart https://nationalpost.com/news/canada/canadas-unhinged-housin...
- alan-hn 5y agoIs 10% == "almost entirely"?
- RandyRanderson 5y agoJun 2021: Canada Is Now 50% More Dependent On Housing Than The US At Peak Bubble: https://betterdwelling.com/canada-is-now-50-more-dependent-on-housing-than-the-us-at-peak-bubble/ https://betterdwelling.com/canada-is-now-50-more-dependent-o... The S&P was flat for 6 years following 2007 in the US. Doesn't seem like a good path to follow.
- yonaguska 5y agoRenovations are actually a tangible benefit, while ownership transfer costs and real estate fees are more of an indicator of high liquidity, but they don't actually provide value for people seeking housing.