CONNECTING THE DOTS

CONNECTING THE DOTS – Toronto – Vancouver Home Buyers PUNISHED – #2021marketcrash #economicbubble #mikemartins

Canada Has A Housing Supply Crisis. So Why’s It Punishing Homebuyers?
Something happened in Toronto’s housing market over the past year that really shouldn’t happen in a free market. As home prices shot through the roof, the number of homes being built in the city dropped dramatically. Vancouver seems to be experiencing a similar problem. So what’s going on here? Why is the supply of housing not keeping up with demand, even though there is so much money to be made? The answer, according to a growing number of experts, is that local policies and public opposition to development are killing off home construction, causing home prices to skyrocket.

Something happened in Toronto real estate over the past year that really shouldn’t happen in a free market. As home prices shot through the roof, the number of homes being built in the city dropped dramatically.

New housing starts fell by 46 per cent in the past year. And even though nearby Hamilton and Oshawa are seeing some of the country’s fastest house price growth, building permits issued there dropped by 29 per cent and 14 per cent, respectively. That’s even though the average resale price in the region soared 22.7 per cent at the same time.

Vancouver seems to be experiencing a similar problem.
#2021marketcrash #economicbubble #mikemartins
“When you have a 40 per cent increase in prices in a year, the skyline should be absolutely saturated with cranes,” Thomas Davidoff of the University of British Columbia’s Centre for Urban Economics and Real Estate told Bloomberg. “That’s not what you see in Vancouver.”

So what’s going on here? Why is the supply of housing not keeping up with demand, even though there is so much money to be made? The answer, according to a growing number of experts, is that local policies and public opposition to development are killing off home construction, causing home prices to skyrocket. Not a good thing in a country whose population grows by more than 300,000 every year.

A number of phenomena are working to fuel rapid price growth. Nimbyism and restrictive land use policies are two of the largest.

Why is the supply of housing not keeping up with demand, even though there is so much money to be made?

Nimbyism, the “not in my back yard” phenomenon, has made it difficult to densify existing neighbourhoods inside cities. Toronto and Vancouver, easily the two cities in Canada that most need to densify, are also two places where NIMBYs often set the agenda.

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Please watch: “Mike in The Night ! – The Great Reset – #mikeinthenight #talkshow #Thegreatreset”
https://www.youtube.com/watch?v=D3SCIZ0zge4
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