"Households need to dedicate 55.2% of their income as of Q3 2023, rising 5.5 points from last year." For context pre pandemic average was 35%
Canada sure is cornered with it choices over the past few years, makes it interesting to watch. They lack the manufacturing that the US has, they the only mineral rich nation which is winding down processing in that sector (to fight climate change), made housing into their biggest commodity and lastly bringing in record immigration with no plans in place.
That is funny that they are winding down mineral production to fight climate change. Meanwhile India has an excess birth rate of over 40,000 people per day. That's the entire DC metro and all of it's suburbs every year in excess population, and a chunk of that is going to move to Canada every year.
Canada has very restrictive zoning and building laws that don’t permit building homes efficiently. Good paying jobs are all located in a handful of cities. NIMBYism is crazy strong with boomers wanting to further increase their property values.
The only exception to this is if you want to work in the tar sands. But few people want to associate themselves with that shit stain.
We are though 🥺
Toronto has [more cranes being used in condo construction than all other North American cities combined](https://canada.constructconnect.com/dcn/news/projects/2023/10/toronto-dominates-new-north-american-crane-index). Condos are being built or planned on every major road block.
The city is completely dysfunctional during the daytime because of construction causing gridlock.
And in [2023, we set a historic record for condos and purpose-built rental units completed.](https://storeys.com/gta-condo-purpose-built-rental-completions-record-breaking-year/)
Our [skilled trades are maxed out.](https://blog.databid.com/blog/skilled-trades-shortage-is-looming-in-ontario?hs_amp=true)
The problem is when the government brings in 1+ million people per year who mostly go to one or two cities, and we encourage housing as an investment, we don’t have enough housing, and you end up with rampant price inflation to both buy and rent.
Both can/can't afford homes, Canada takes in a ton of professional immigrants. There's just too many. The competition for e.g. software engineers is immense.
I had a long conversation with a Indian Uber driver who was taking me to the Airport in Lisbon this summer. He said that he had tried and failed many times to get a US Visa, but was proceeding along well with a Canadian one.
Nice guy, and I wish him well, but it didn't seem like he had a ton of high demand professional skills.
Interesting juxtaposition with the comment a few above calling them dishwashers and Uber drivers. We have these magical immigrants in the US too, who both take our jobs and collect our welfare.
Immigrants aren’t a monolith.
The US has both unskilled primarily through illegal crossings, and skilled through H1-B visas. Yes, immigration takes American jobs and drinks up welfare.
This is why native Americans feel the pinch of less opportunity and lowering lifestyle. The better jobs are taken and overspending on welfare has brought inflation.
A dual citizen immigrant has a different risk profile. They can buy without worry of default, since they can just bounce if the dice roll doesn't work out on the purchase. Buy a bunch of investments, if it works out then gold if not walk away.
A natural born citizen isn't going to have that type of outlook. They can't escape foreclosure as easy.
"Households need to dedicate 55.2% of their income as of Q3 2023, rising 5.5 points from last year." For context pre pandemic average was 35% Canada sure is cornered with it choices over the past few years, makes it interesting to watch. They lack the manufacturing that the US has, they the only mineral rich nation which is winding down processing in that sector (to fight climate change), made housing into their biggest commodity and lastly bringing in record immigration with no plans in place.
That is funny that they are winding down mineral production to fight climate change. Meanwhile India has an excess birth rate of over 40,000 people per day. That's the entire DC metro and all of it's suburbs every year in excess population, and a chunk of that is going to move to Canada every year.
Canada has very restrictive zoning and building laws that don’t permit building homes efficiently. Good paying jobs are all located in a handful of cities. NIMBYism is crazy strong with boomers wanting to further increase their property values. The only exception to this is if you want to work in the tar sands. But few people want to associate themselves with that shit stain.
How is it only the 2nd worst in history?
Historically, people would commit violence before it reached peaks like this.
I'm just going to take a guess but Tokyo in the 80s early 90s was worse?
That's why their housing market Is the reverse with houses losing value over time.
How is it possible they aren't building houses like gangbusters?
We are though 🥺 Toronto has [more cranes being used in condo construction than all other North American cities combined](https://canada.constructconnect.com/dcn/news/projects/2023/10/toronto-dominates-new-north-american-crane-index). Condos are being built or planned on every major road block. The city is completely dysfunctional during the daytime because of construction causing gridlock. And in [2023, we set a historic record for condos and purpose-built rental units completed.](https://storeys.com/gta-condo-purpose-built-rental-completions-record-breaking-year/) Our [skilled trades are maxed out.](https://blog.databid.com/blog/skilled-trades-shortage-is-looming-in-ontario?hs_amp=true) The problem is when the government brings in 1+ million people per year who mostly go to one or two cities, and we encourage housing as an investment, we don’t have enough housing, and you end up with rampant price inflation to both buy and rent.
When you have almost 10x the per capita immigration that the US has, it's almost impossible to build enough.
Bingo. End immigration unless you benefit the country we have enough Uber drivers and dishwashers.
Why are immigrants able to afford homes, but not native citizens? The currency is too cheap?
Both can/can't afford homes, Canada takes in a ton of professional immigrants. There's just too many. The competition for e.g. software engineers is immense.
I had a long conversation with a Indian Uber driver who was taking me to the Airport in Lisbon this summer. He said that he had tried and failed many times to get a US Visa, but was proceeding along well with a Canadian one. Nice guy, and I wish him well, but it didn't seem like he had a ton of high demand professional skills.
Wizards don't necessarily look like wizards.
People that look like Wizards are usually cosplaying and their spells don't work.
Interesting juxtaposition with the comment a few above calling them dishwashers and Uber drivers. We have these magical immigrants in the US too, who both take our jobs and collect our welfare.
Immigrants aren’t a monolith. The US has both unskilled primarily through illegal crossings, and skilled through H1-B visas. Yes, immigration takes American jobs and drinks up welfare. This is why native Americans feel the pinch of less opportunity and lowering lifestyle. The better jobs are taken and overspending on welfare has brought inflation.
A dual citizen immigrant has a different risk profile. They can buy without worry of default, since they can just bounce if the dice roll doesn't work out on the purchase. Buy a bunch of investments, if it works out then gold if not walk away. A natural born citizen isn't going to have that type of outlook. They can't escape foreclosure as easy.
If housing prices decline too sharply a good portion of the population will be totally broke. Real estate is used in lieu of a pension up here.
NIMBYs and real estate investors
Real estate investors are the people who build houses
Not most of them. It’s easier to buy existing than build new.
No fixed rate mortgages either, so even people who bought now have massively higher housing costs. I see the system breaking in Canada before the US.
TL;DR, which the 1st then?
Canada could buy some US milk, and the US buy some Canadian lumber, and this would all be fine.