You can say that again! Sometimes it's so frustrating how slow this stuff moves.In general, lots of decent ideas, but a bit too much study/reporting and too light on nearer-term actions.
Mother of all MZOs to upzone every yellowbelt lot?Maybe the province will end up forcing everyone’s hand.
Read the comments for a good laughOp-Ed from the Globe:
Opinion: To solve Toronto’s housing crisis, we must end restrictive single-family zoning policies
The city needs more affordable dwellings for more people, which means constructing a greater variety of buildings in the middle ground between single-family homes and high-rise condoswww.theglobeandmail.com
Read the comments for a good laugh
What do you suggest is done on the demand side?While there certainly are some unreasonable comments, I found a great number to be quite reasonable.
This:
View attachment 379915
That's actually a fairly progressive take with a modest sprinkle of understandable self-interest.
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Additionally there are are people noting:
1) This is more a demand problem than a supply one. That is absolutely non-negotiably true. I'm progressive on zoning and intensification and not opposed to population growth,
but its certainly true that if we slowed population growth to the level of 10 years ago, housing prices and rents would fall. Toronto does have record/near-record levels of housing starts and is up there
among the highest in North America. One cannot reasonably ignore the demand portion of the equation.
2) Investors, both foreign and domestic are buying up a material chunk of the new housing, and while many are renting out, many are not. MetroMan, a former regular poster here noted that
at his previous condo he was one of a handful of occupied units in his condo building (at least on his floor), the majority were vacant. This varies from one development to the next, but is certainly a factor.
3) That missing middle housing, and relaxed zoning while fine things, will not create housing affordable to low-income earners. A single individual on Social Assistance gets $733 per month, that includes housing and all other
expenses. No amount of building will get rents down to under $300 per month. Even for those working full-time at minimum wage, that's about 30k per year, gross.
By the time taxes, CPP and EI are deducted, you get a clear, pre-tax return pay of about $23,000 or just under $2,000 per month.
That would require rents in the range of $700 per month for someone to survive.
All of which means, income growth for the employed is critical, with minimum wage needing to be closer to $22 per hour than $15; those on Social Assistance also need greater financial support, but would require either
rent-supplements or purpose-built affordable housing to make ends meet.
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On balance I thought there were alot of good comments
What do you suggest is done on the demand side?
I'll address each of your points separately.There are '5' principle sources of demand:
1) Normal domestic population, with demand fluctuating based on interest rates primarily
2) Investors, both foreign and domestic, purchasing multiple units
3) Immigration (normative, through the immigration process), set by annual quota by the Federal government.
4) Foreign students, brought in both by provincial action (approved program spots), and by federal action (permission to enter/work etc.)
5) Temporary Foreign Workers (includes, agricultural workers, but all caregivers/nannies and many who end up in industrial and fast food settings as well)
Each of these can be, and should be address in different fashion.
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In respect of #1; raise interest rates, eliminate first-time home buyer incentive programs, reduce desirability of home purchase as investment by eliminating principle residence capital gains exemption, or at least capping it)
In respect of #2; ban pre-construction purchase of more than 1 unit in a development by any business or person, eliminate the lower capital gains tax rate (charge normative income tax rates). Also cap the number of homes anyone can own at any one time, particularly in greater Toronto and Vancouver to not more than 3.
In respect of #3; Modestly reduce total immigration, just to the level of a few years ago, temporarily, until home/rent prices have moderated. Consider exemptions to the cap for areas than require immigrants just to hold population levels steady such as Newfoundland.
In respect of #4; Reduce the number of foreign students in community colleges, in particular, and in undergraduate programs as well (no reduction in graduate programs). Reduce to same level as a few years ago; mandate that colleges that wish higher number can have them provided they build sufficient student housing to meet the needs of any permitted students.
In respect of #5; Excepting agriculture (for now), eliminate TFW's for personal care (existing people here can stay); put a clear rule that to be for a TFW to be allowed they must be a high-skill job AND make a wage that is prevailing in their sector and at or above the median wage for Canada.
I'll address each of your points separately.
1. Doesnt eliminating first time home buyer incentive programs just "lock in" current owners and prevent upward mobility for those without a home? It's not a knock on your idea but genuinely curious.
2. We can debate the details but i agree with this one.
3. Truthfully, I've never thought immigration was a major issue. We can continue immigration as is while addressing your other points. Canada is a huge country and we can easily support many multiples our current population. The bigger challenge in my eyes is how to spread "work" across other cities / nodes than just the GTA.
4. Do you believe foreign students have a measurable effect on home prices?
5. Completely agree with this one.
We should be weary of not killing supply while trying to curb the demand side of the calculation.In respect of #2; ban pre-construction purchase of more than 1 unit in a development by any business or person, eliminate the lower capital gains tax rate (charge normative income tax rates). Also cap the number of homes anyone can own at any one time, particularly in greater Toronto and Vancouver to not more than 3.
Housing to the moon!Canada aims to welcome 432,000 immigrants in 2022 as part of three-year plan to fill labour gaps
Ottawa says increased immigration essential with five million Canadians set to retire by the end of this decade and as newcomers accounting for 100 per cent of labour-force growthwww.theglobeandmail.com
Demand is here to stay for the short term
451K in 2024??? Where they all going to live?
Everybody is equal, but Boomers are more equal than others.Housing to the moon!
20% growth this year, next year, and every year until the sun dies!! Totally sustainable!
100 millionCanadiansdebt bonded serfs by 2100!!!!!!!!