How’s it rigged? People who been in the game longer than you are doing better isn’t rigged it’s how life works. Alberta is few hours away with a ton of affordable why don’t you go buy there? Just admit you’re just lazy and entitled.
I think he's full of 💩 - of course, prices haven't been moderated yet, and we still are not building enough to meet demand. SUPPLY AND DEMAND. Very simple. If you are looking for someone to blame - blame NIMBYs
Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
@@bernisejedeon5888 I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@edelineguillet2121 Big Credits to “Julia Ann Finnicum” she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Julia has been a good guide through the year.
@@yolanderiche7476 She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Been saying for years that any proprties purchased which are not primary living spaces for the buyer should require a 75% down payment at least for the second home. Anything more than 2 homes you need to buy outright. This should resolve the issue of people using equity to buy homes as investment properties. Also anyone who owns multiple homes shoulf be taxed like crazy on the rental earnings. Everything we've done in canada has led to a culture of greed
Canadas economy relies too much on housing. Diversifying the economy and making other forms of investment more attractive such as businesses, is the only way to fix the problem.
Stop wasting the tax payers money on programs the never have and never will work (Start by cutting U.I.C. to 4 months, and kick able bodied young people off of welfare) then LOWER the taxes.Eliminate the Carbon tax. THAT will spike the economy. It will also get people working. I know a place that has been looking for a waitress for 3 months. No applicants. but paying people not to work is a killer
@@ironhammer4095 Wrong. That's inflation. In 1960, I could go to the upscale drive in aka The White Spoot' (Only in B.C.)have a super tasting cheeseburger with onions et al, fries, and a coffee for a dollar. Today $25 bux. I am not an Economics Major but regulations , controls, government intervention and meddling will create inflation. take a look at Canada and the us before 2016, and since 2016. Both bought into and elected a amrxist based dictatorship. We are hooped.. Capitalism is the best tyttem in the world, and it made American the most awesome country on the planet, along with Canada. then the marxistscome and take over and kill the goose that layus the golden eggs, and I have watched this happen from ring iside ever since 1972, when B.C. elected 'the commies' aka NDP. They killed us
I was born in Vancouver, I now live in Alberta and work for the government working in housing and I see stats. People from BC and Ontario are buying up the real estate in Alberta now. Calgary's rental vacancy rate is so low and let me you tell how many of these rentals are investment properties.... I suspect the next Canadian cities to go up in price will be Calgary (already there basically), Edmonton and Montreal. Mass immigration is too much for the available rental inventory.
Which is a shame because Calgary has done a very consistent job with housing and density. It's not Texas in Alberta at all, it's more like suburban Toronto. It fucking sucks that Ottawa and the provinces just make us war it out on eachother rather than change policy away from The Housing Hunger Games. The global money always wins. Remember Canucks: Most "foreign" property investors are AMERICANS. We can blame the money from the USA for this, primarily.
Vancouver is crazy, ratio of 10 income/property value versus Toronto of 6, shows how unaffordable the Vancouver market is. Problem is the foreign money continues to push up values in Vancouver and likely won't abate. Just means the regular folks can't afford to buy.
Exactly. You can find an article in the New Yorker in 2014 called real estate goes global. Where it states that surprisingly the hottest real estate market in north america is in Vancouver which doesnt match the average income... people with money have been buying up real estate because there arent enough safe assets around. And its flowing internationally. Now theres an interesting video by cbc reporter Utay Lee on missing middle housing in Vancouver. If you want to build a coach home on your lot, many areas domt have the zoning but if its allowed it will cost 250-350k to build (plus 70k to the city to pay the increased density fee) how many years to get a return on investment? Decades. Its not worth it. If you have the money you can just let it earn 6% and still keep your yard. It may be worth it for multi generational housing. But do your kids want to be that close?
Companies shouldn’t be allowed to buy homes. Houses are for living in, not to be items on asset sheets. How the f is this being allowed. No wonder why buying a home and rental rates are so high.
The more the market gets controlled, the higher the misery index will go. Leave business alone. So there is greed. Guess what,poor folks can be greedy too.
I find it really funny when someone says “this should be illegal” and someone else responds with “it’s not”. Like, yeah, we know. That’s why they included “should be” in there. Marlon’s position, of course, is absolutely correct. Also, putting aside the fact that capitalism is basically completely counter-productive to the health and happiness of humanity and the planet, limiting the amount of investment properties someone can posses has nothing to do with any other economic system than capitalism.
After 20 years of this Vancouver housing crisis , why is this the only data you have ? And then they need more years to collect the really important data ? It’s deliberate to obfuscate and deflect so that no reforms can be made and to keep government coffers filled with taxes collected from RE
I'll have a good reply to write here, but because of the complexity of the topic, I'll need more time to assess the situation to determine what options there are if any moving forward. Please @ me in 6 to 12 months.
Housing should be like a utility, equal access for all. When multi millionaire investors are able to bid up prices beyond what the people who actually live in an area can afford, and then charge high rent because they paid an outrageous price, it creates a road block to life. Maybe there should be curbs on how much residential property someone can own. Let the millionaires and hedge funds and pension plans invest in commercial, but leave residential out of it. The median income in Canada is $39,500. Half the country makes less, the other half makes more. If $39.5k/yr is the median income, it makes no sense for the average home price to be $700,000. That is the 1% wealthy investors causing hardship to the rest of the country. We see this today with late marriages and a crashing birthrate. The single biggest expense most Canadians have is their homes, and the wealthy are putting the screws to the rest and destroying the future of the country for personal gains.
I should also mention that using average income to determine the wealth of most Canadians is a lie foisted by the rich. If you live in a poor town of 100 people, where everyone has debt and their net worth is around zero (1 in 2 Canadians has a net worth of zero dollars), and Elon Musk moves to your town, he will drag your towns average net worth up to 2 billion dollars per person. Everyone is still broke, but you look rich on paper. Median net worth is still 0, but average is 2 billion. Half of Canada has a net worth of 0, but average net worth is $740,000, because the top 1% have so much money they make the majority broke nation look rich. And those are the folks buying up all the homes, paying ridiculous prices and driving up the cost of everything as they pursue profit.
Exactly. I have said for many years that housing should not be considered as a vehicle of investment. Housing is fundamental as food!!! No corporate or multiple buying. Ban it !!!
Sorry, but I feel as if you have completely missed the mark on some of the opinions and data presented in this video. What Prof. Condon was saying was that Vancouver is basically divided into haves and have-nots. Many of the "haves" are haves simply because of a little bit of luck and timing. A lot of people have this idea that it's millionaire foreign investors buying up all the property that is causing housing prices and rents to skyrocket but a lot of these investors are actually your local neighbours. The majority of Canadians actually do not want to see a housing crash. The majority of Canadians own their home. The only people who are truly screwed and hoping for a collapse are first-time homebuyers who have not yet entered the market and make around an average income, because you're right, how can these people afford these prices? These can be young adults and it can also be older adults who were unable or chose not to purchase property roughly 10, 20, 30 years ago when housing was more affordable. Prof. Condon explains that it's people like him, and other boomers, that are lot to blame. You're also confusing income with net worth. The two are not directly correlated. Also, I don't know where you got your data that 1 in 2 Canadians have a net worth of zero dollars because it's not accurate. Let's talk more about those haves. Basically anyone who purchased a single detached home in Vancouver when it was more affordable to do so are now paper millionaires (eg. purchased house at $200,000 with $40,000 household income and mortgage debt of $100,000 left now worth $1,800,000 = net worth of $1,700,000 which can be tapped as equity). It doesn't matter what their income was and is. This is the story for so many immigrant families as well as local families who came with or made very little money but put everything they had into buying a home. 15-30 years later they're sitting on an investment worth significantly more money that they can use to leverage for a number of investment opportunities. Roughly 1 in 4 BC homeowners are property investors. 1 in 10 have an owner-occupied investment property that is talked about in the video. These haves are using their wealth to generate more wealth. Having experienced tremendous success with the housing market, these people are now leveraging their net worth to purchase smaller properties, particularly condos, as investments. And let's talk about generational wealth transfer. We talked about young first-time homeowners a moment ago. How are these kids fresh out of school and earning $50,000-60,000 able to afford $500,000 condos? Well, it comes down to their "have" parents helping them. Again, these are your everyday neighbours. Many first-time mortgage takers get help from parents in the form of a sizeable financial gift. In Vancouver, apparently that average is $180,000 towards the down payment. Combined with their own savings, that's enough to reduce the size of the mortgage down to something reasonable on an average household income. So "have" parents have now enabled the next generation to also own housing in this crazy market. Other parents purchase an investment property that they rent out until their children are ready to move in. And in a country where such a sizeable number of people own their own home where housing is the single largest contributor to GDP growth, average net worth has also grown with it. It's not because Elon Musk is moving into your neighbourhood, it's because of housing. Simply, your facts are wrong and housing is the primary driver of net worth growth. We can use Stats Canada quintile data instead of total averages and even medians to see how those who fall into the lowest quintile are doing and also those who presumably own homes and fall in a higher quintile. These numbers have grown significantly between 2000 to now. Also, I wanted to point out that high rents are often not a direct result of high housing costs. It can be a factor, but market rent is primarily driven by what the market can bear. Simply put, there are enough people who can afford $2500 rent for a 1BR. It is not the renter's problem if the landlord cannot afford their bills. If everyone hypothetically lost their jobs tomorrow and suddenly could only afford $500 in rent, these landlords would no longer be able to charge $2500 even if their monthly housing costs are close to $2500. Rents would drop down to $500 and the landlords who cannot manage will be forced to sell. And that is my very long winded explanation for why the housing crisis is only a crisis for a select number of people and how so many people are able to afford such expensive housing. It comes down to the fact that many people already entered the market long ago and has profited immensely from a red hot property market.
Around 2010 prices were indeed going up but only in small increments, then in 2015 the bubble burst, and homes that were 250,000.00 went to 350,000.00 then later 500,000.00 and soon 600, 700, 800, and even a million, insane!!!! Even with the bit of money my late father left me, i cannot even afford an older fixer-up mobile home on Vancouver island..
2010 was pretty high due to the building of canada line and the olympic games, but it was still pretty cheap in places like richmond, coquitlum, surrey, langley, now even abbotsford is unaffordable
It started in 2003 when the Olympics were confirmed . My brother is an architect here and he said as soon as the Olympics were a go in Vancouver, he said Asian investors overwhelmed his office with new purchases and new development deals in the lower mainland and Whistler, completely destroyed Vancouver and it’s affordability. Sucks
In 1965, a 4 BR home with an in law suite on a 60 foot lot would sell for 22 thousand.. on Van West Side. Ten years later 80 thousand. Ten years later 280 thousand.Then years later 800 thousand, in 2005, 2 million. today 7 million. It is demand. Off shore investors weren't a big factor until Expo 86. Which is when that house was 280g. In 1965, and area pop lower mainland (everything west of Aldergrove) was about 870,000. today it is 2.6 million. So yeah, demand is the catylist
The biggest bubble burst was from 1968, to ap72. A 4 BR homoe on the West side in 1968 would sell for $33g. by aend of '69, same house would sell for $46g. in 1972, same house sold for $78,000. That's 3.6x in 4 years. Sathen there was a lull. Same house in 1978, $85g. 2 years later, same house $350,000. last time I looked, that was almost 4 fold. and the Asian investors weren't here yet. Let me say this one more time. Real Estate prices are demand driven. Price is determined by buyer and seller. . Nobody else.and God isn't making any more land. In Vancouver you have the north shore mountains, you have the US border to the south. Georgia Strait to the west and the Fraser valley on the est narrows to a close at hope. AND EVERYONE wants to live here. Do you see how this works??
I wish this piece went into why increasing supply has not moderated the increase in housing costs. At 6:50 prof. Condon accepts the principle that increasing supply should put downward pressure on prices, but his overall message is that that doesn't work, citing Vancouver's experience over the recent decades as proof. This needs to be sorted out for us, because as it stands, I don't see why he isn't wrong. It looks to me like it is a supply issue, that while a lot of housing has been built, it just hasn't been nearly enough to accommodate our increase in population. If going gangbusters on supply won't halt the inflation of housing costs, that needs to be explained. The longer term project, of returning housing costs to an acceptable fraction of ordinary people's incomes, I think will require more than a better supply/demand ratio. I think that will require somebody's ox be gored. I vote it be the banker's.
No kidding. We certainly haven't built more units then the number of people who moved into the city in the same time frame, so what the heck is he talking about?
The issue is supply AND affordability. The government needs to build non-profit rentals. I can't imagine that this issue won't impact Vancouver as a city.
@@ArtyMcFly Caused by zoning restrictions and high land values due to limited land availability. But there's no revenue in it as renters don't pay property tax the government is dependent on to keep the city running.
Increasing supply won't work directly to force prices down because housing is not ONLY a consumption product. Its also a speculative asset, especially here where as mentioned investment properties and foreign money stashing abound. As long as people believe that the market will go up (and upward population growth pretty much guarentees this) there will be GLOBAL interest in purchasing vancouver real-estate, something supply can never out-pace.
This is the fundemental issue: we amass data by the bucket, the analysis of which can't be discussed by public policy makers. Why? How can the public understand and participate fully in society if they are not fully informed by those who gather the data and make the decisions?
making inferences and conclusions from data is tricky and requires a lot of subjective/objective analysis and prone to bias. As a statscan employee, he has to be very careful not to give opinions on the data as a flawed interpretation can bite back to him and his department. the statistics department is only supposed to collect and present data properly and comprehensively. Its the policy makers job to analyse and draw inferences and since he is not one of them, he is not giving any opinions.
this was a really good piece! I love that first we got raw data from an expert in that field, then we got some proper analysis from an expert in their field, really nice to see!
This is what I’m trying to say in every video, they need an entire ban on foreign investments. But all these Chinese “Canadian” viewers just skip by those comments without a care because they know it on the inside
“Offshore “ investors is about as close as they’ll come to pointing a finger at the most populous nation on earth. They tiptoe around the reporter’s questions likely because her last name is bait they are afraid to “chew on.”
And who do you think sold these foreigner the homes to begin with. FYI ....it was a canadian that sold it to them. Stupid greed. and then whine about it.
Not necessarily foreign investors, but new immigrants with tremendous wealth from elsewhere. Tons of those in Vancouver. Many places have low income tax and high income. Stack up on those $ for 10 years, come to Canada and buy housing. Locals can’t compete
Housing is a basic need. Plain and simple. No sociologist in the world would deny this fact. So why do our governments, (municipal, provincial and federal), assist the people and corporations that treat housing like a commodity?Especially when these entities use accountants and loopholes to lower the amount of taxes that they pay. Personally, I feel that it is well beyond time that our governments start to support everyday citizens. Either that or quit expecting everyday citizens to support our governments.
@@shauncameron8390 When you deny a person a basic need you are asking for trouble. They may not be obligated to grant me housing, but it would be very unwise not to do so. When this changes from an individual to a mass, big problems will ensue. That is what irks me the most about this. The sheer stupidity of it. While individuals are increasing their incomes by 10 or 20 or 50 thousand a year we are all paying the extra costs in social services, more policing, extra medical costs and experiencing greater levels of crime. Homeless people do not respect the system or abide by it's rules. Why would they, after the system has let them down. Any sociologist or political scientist will tell you that as the number of homeless increases the societal cost increases exponentially. How much extra income is needed to deal with the trauma of having yor car or home broken into. Or heaven forbid something worse. Then there are the times that your heart races when encountering one of these people on the street or in your alley. I really don't see any winners here. In some way shape or form we all lose from this. As I said, no one is obligated to grant me anything. But it would be wise to ensure that my basic needs are met. And I haven't even touched upon the lack of motivation that many will have at working hard. Why break your back when you can't afford the rent?
@@akenemabresi Mrs Sophia guidance or strategy, your profit rate is 98 percent guaranteed and the minimum risk percentage is just 2 percent which is a rare happening in a long while now. I have been benefiting from her services for a year and half now.
When I was a adolescent, all my childhood friends were the children of Big Circle Boys, 14K, and Lotus members. They all had multiple homes within 5 years of immigrating to Canada. Now, I know a few of them that even have mansions in Shaugnessy, West Point Grey, and West Vancouver. This is who buys them. 💯
and that SHOULD be illegal. But. How do you prove one is a Tong? Or a Triad? then there are the civil rights lawyers and the laws against discrimination. Lee Kai Cheng (sp?) bought up false Creek after expo, and I understand HE is a Triad member, they make the H.A. look like choirboys. I think we are being taken over in more ways than one.
It's not the supply of appartements and condos that is the problem. It's that they are build to be more and more luxurious instead of affordable. How the **** are you guys missing the point that bad!?
By trying to increase the supply quickly, the developers have been building super highrises, which is something politicians and voters were all supporting as well. Structural demand and complexities as well as construction costs start to increase per square unit area rather than decrease past a certain storey height, around past 12 storeys. So the 30, 40-storey condos you see actually cost a huge amount of money to build. The only way to make up for that cost on top of the money they had to pay to greedy landowners is to value engineer it even further into "luxury condo" territory to justify the price tag. That is because people generally stay away from basic, barebone properties that cost a ton, but luxury buyers care less about the price differences as long as it's offering something that's appealing to them. So yes, Vancouver's efforts to super-charge supplies has indeed backfired in an almost irresversible way.
The issue is that housing has turned into a commodity. People who already have housing can buy more housing. Corporations buying up properties. These people then set the prices on rentals.
In Vancouver, that is indeed the case. However, both are way too high, and the renters’ lower rate is actually much higher in comparison to their income/net worth than most investors’ mortgage payments, and that’s really more important than simply the numbers.
@@joeisawesome540 i was paying 3.2k for a old run down house in East van with a few roommates. that 1.8 mill house would be 8,900 monthly mortgage 20 % down
Believe me, most of us are very aware. I was born here in 1945. Seen a few changes. City government is a big factor in the demise of this once great city
You'd think that if real estate prices got higher than most could afford (as is currently the case) market forces would force those prices down. Yet, they don't go down as SOMEBODY seems to be able to pay these high prices. This seems to be an indicator of the gross wealth inequality in this country.
Can we make other cities more attractive to live in thereby relieve the pressure on big cities? There are a lot of small communities in Canada that are losing population.
This^. Premier Eby has told certain communities they MUST increase housing availabilities. It's obviously not the solution as is said here. Give incentives to businesses to move to small communities so people can find work in those places, places where you can buy a whole house for less than a Vancouver condo. Or find incentives for businesses to allow more work-from-home situations.
You can if you will stop it from deep freezing 4 months a year in Edmonton and Calgary, and Winnipeg..and Red Deer, and Prince George (both have hella crime rates) and also stop the snow from piling up in Cranbrook.. but that aint gonna happen so everyone wants to live HERE, or in nanaimo, or Victoria, or Courtenay, or etc. All you need is a million bux and then you han buy a condo there. Twice that for Vancouver. It cannot be fixed
@@Sqmsh_Patricia EBY needs t keep his nose out of business.Especially Real Estate. He has no clue, and has zero business acumen. So sad he got elected. Bonnie Henry is worse, and Vancouver's mayor is worse than any of them. I cannot remember when they ever had a good one. Throw out the left and then watch what happens. Since they got in, the misery index only goes higher. AND, as long as they are in, it will only get worse. The homeles and DTES is a total mess, as is the soft on drime city government. The violent ones are out 2 hours after they are arrested, to attack someone else with a hammer. and Kennedy Stewart wants to DE fun the police. Do you see anything wrong with that picture??
Where did they get that Housing Price to Income Ratio from? According to the CREAB, median house prices for Toronto and Vancouver are nearly on par, and according to StatCan median household income in both cities is also nearly on par. So how is the ratio between the two 6 to 10?
And it is only the all --- affluent,all --- rich and the all --- wealthy as well as the all --- financially --- stable fellow Canadians are the only ones who can afford our ridiculous,insane and outrageous market prices of our Canadian real estate market that skyrocketed many,many and many times since the 1990's decade.
Municipal government, banks and developers are all working together to their own benefit and greed that resulted in this bubble. More supply means more money for developers. More housing projects means more lending (interest income) for banks. Higher housing prices means higher property tax revenue for the government. Why would they want to change this formula when all these parties are benefiting from this. The question is: who are these "investors"? Is it dirty money? Difficult to believe that retired boomer couples can borrow money from the bank purely based on their home equity. I think the bank needs steady flow of income and as a retired couple, how much property can you buy with a fixed pension income? I would look at how much money is coming from outside Canada and who are they? Have these people bought their citizenship as an investor to make it look like they are just wealthy Canadians? CBC I hope you will take a closer look at the buyers.
single family detached homes are not for investors and lived by owner, while condos built now are 50% for investors. then isn't rezoning and densifying land to build new condos would mean inviting more investors and chase away actual local residents?
Interesting video and I liked that he didn't attempt to speculate on causes or impact. However, when they talked about investment properties often being used as rentals, it raised a question that was not asked in the interview. What percentage of those investment properties are leveraged in the short-term rental market (AirBnB) as opposed to long-term? I suspect (fear) that a large part of the reason for spiraling rental rates is because many investors prefer the more lucrative short-term rental market, which helps to contribute to the lack of availability of rental units for people who need them.
The issue is, there may be enough supply for people to LIVE in, but that's not all the supply is used for! When you're competing against wealthy foreign investors and speculators, it's a totally different ballgame. Surely, there has to be SOME amount of supply that, if built, would start leading to a drop in prices. But how much investor money would that sponge have to soak up before it got saturated? In Canada? And Vancouver specifically? A coastal city with natural beauty, voted "most livable" several years running, located in a free, relatively safe country with barely 40 million people of its own, surrounded by 2 oceans, little pollution, the US to the south, etc, etc? That supply "sponge", faced with the investment hunger of people who are the wealthy elite in their respective countries the world over? Yeah. It's going to take a lot of supply before that sponge starts feeling anything less than soaking wet.
It's simple supply and demand. Vancouver is the most desirable city in this dreaded country (in terms of weather). Hence the imbalance in supply and demand driving the price up. There's no way to change it other than making it less desirable (like higher crime rate, less job opportunities and of course higher prices), but do we want that? That's the dilemma.
Or they could stop selling the entire place out to Chinese Hong Kong foreign investors and speculators that do nothing more than Park their money here gut out neighborhoods and communities and leave the whole place garbage
The game 'Monopoly' is pretty spot on with regards to this: if you don't have any properties, you just pay and pay, and if you have hotels and houses on 'Boardwalk' you make loads of cash from the other players, but that's when the game ends.... so when does this whole thing end and just cave in eventually? Who's turn is it to roll the dice?
It happened throyghout history. When wealthy own entire city blocks, and poor reach a level of unable to improve status in life despite hard work, there is revolution for a reset.
Not just only pay and pay, like a lot of people did is to find ways to be way ahead of the game. There are many people be able to find ways to beat the mortgage and eventually own a house. It's all about knowing how you invest and how you do you money managements.
@@ironhammer4095to a certian point. but when prices are so unaffordable for us. how are people from India, Thailand, or Africa supposed to come and spend more money on 1 year of rent than their entire family makes working for 10 years
@@fallingpizza11 because the elites running the country want to extract money from you (via rents) and to keep the wages down. That's what your purpose is. They don't care about you except to extract work out of you cheaply and then extract your wages from you via rents. That's what they're bringing you in for.
Make it illegal for companies and corporations to own residential properties and put a cap on how many investment properties a single individual can own (like, 3 for example)
I live on the west side of Vancouver and see many family homes being turned into B&Bs and Air B&Bs, this is why many former rental properties are gone.
Everybody blames Chinese buyers. The truth is, every single local is buying. If you go to BC talk to people, they tell you can’t call yourself local unless you own 2 or more properties. Realtors are buying, local owners are buying 3rd property, and mortgage brokers are buying, and heck, realtor and broker will sign together to buy. but when the time comes, everybody needs an escape goat so, Chinese. Oh, people suddenly forgot city of Surrey is full of Indians and that was the affordability line 8 years ago. Likewise, those Indians can be Chinese when the time is right.
I have a friend ( who immigrated to Canada 9 years ago from Europe) complaining UBC has been occupied by mostly Chinese students and he forgot Chinese can be Canadians too. That explains why people only call me 'Chinese' even I have been living in Canada for almost 50 years. If I buy a house, people will say ' the house was bought by a Chinese'.
We already know this 10+ years ago... problem was, various government levels claimed they're just 'anecdotal' evidence.... today we have Stats Can. to backup that evidence... yeah keep building... will just get snapped up by flippers... maybe governments wait until 80% investor/foreigner owned, then they'll consider changing policies....
Why is it so hard to understand that when you allow illegal money (because it has not been declared to the authorities in the country of origin) to flow out of China and into the property market in Vancouver the locals will not be able to buy a home. The buyers are motivated by getting their funds out of China so they really don't care about the price. When a doctor can't afford to buy a house for his family isn't that the big red flag you need? Stop the illegal flow of funds and housing prices will come down so that the average salary will by able to pay off a house in 20 years.
Makes you wonder why CBC would not investigate what % of the property investments is done by foreigners? StatsCanada has this data, including that most $$$ into Vancouver RE comes from China. Also, increase in RE pricing is directly correlated with immigration levels. Canada has BY FAR the greatest ratio of importing people to existing population which is done essentially for ideological rather than ‘economic’ reasons. In other words, CBC demonstrates again that it is not in the business of truly informing Canadians of what really matters to them.
this is simply not true. Here is quote from stats Canada : Beginning with the Greater Vancouver Area, 4.8% of residential properties are owned by non-residents What you are saying is simply not true. Most properties are owned by Boomer generation. I am sick of tired of people blaming others instead of looking at themselves. here is another stats: 40% of boomer homeowners have at least half of their net wealth in real estate 17% of boomer homeowners currently own more than one property. 66% of Canadians own their own property. 64% of boomer homeowners are mortgage-free Here are the facts. If you want to bring up foreigners mess up demand bring up the stats don't just make up random things to blame others.
Just as an interesting fact that the investors are the ones who actually helping build these buildings as in Canada a contractor can’t usually obtain the capital to actually build without selling at least %50-%70 of that project
Taxed to immigrants, not to people born in Canada. You increase the taxes even more and you just create a situation where China can afford and Canadian citizens can't. People buying from out of country are the ones who should pay insane taxes.
@@Samuri5hit84 immigrants are absolutely not the problem. It's institutional investors that are domestic and international and the lack of building affordable housing.
Investing in Real estate is wise, and the taxes should be lessened. Investing in blue chips is wise. I think dividends and Capital gains taxed only by ten percent. Then guys like you would have more incentive to invest your hard earned money (assuming you don't work for the government) Investing in Mutual funds 's is wise. Not investing at all is exceedingly stupid
@@glenw-xm5zf real estate is a purely extractive industry and is essential for all humans to have. It shouldn't be a vehicle towards wealth and again, should be taxed into oblivion. All the other things you listed are great examples of appropriate investment. And no, I am a business owner.
@@frostman9661 Good you own a business. that takes courage. Here is how it should work. Investor purchases a diestressed property, maybe 90 cents on the dollar. THEN does some improvements, (it has to have the right things wrong ith it) Maybe they remove the thorny bush from the back yeard, paing fhe front porch, and spruce up the kitchen.. THEN thy sell the house at a price that covers the expenses, and puts 8-10 percent intheir pockets. The new guyer gets a home that is in better shape, SO win win win. the 3rd win is for first seller, who might have been facing forclosure. It works great.. but like most people, I don not like what is happening today. with people buying up blicks or proberty and then getting people to bid up the price. There are some very ruthless Real Estate sales people in Vancouver.. and hint: Most of them weren't born there
professor seems defeated.. at least an honest answer compared to most 'academics" who comment and unfortunately influence and dictate policy on the real estate world from a purely academic perspective..
I find it amazing that we continue to be rude to each other in the fact that housing of any type It's been who's for primary family. Anywhere in canada homes are used as investmand it's no claim I live in oshawa. And i'm surrounded by rental property. I go to city hall look up the property listing owners are in a different location and address. On top of that they turned most of the rental property into non legal confining units Every politician is aware of this right from the councillors, regional Is counselors mayor Write up to the province right into ottawa. It's a joke because they all want their steak and lobster while the rest of us suffer. The talk is cheap But this particular journalist slash reporter is seeing the truth. I usually despise anyone from the cbc but her she's dead on about this situation.
And who do you think sold them the property to begin with A CANADIAN. gesh. sold to make greedy money and then whine that its too expensive. you can thank a canadian for that.
I'm very concerned that the banks and other business entities now buying properties as investments, its doing tge same thing abd making it a hell scape
This is Capitalism. You either understand the rules of the game, or it's game over for you. It's not just Vancouver, but other big cities like Beijing, Shanghai, HK, London, Sidney, NYC, LA, Taipei, and Tokyo are very expensive for the average joes.
Are purpose built rentals considered the same as Non-market rental housing? I'm thinking not. If rent is not tied to the market - not privately owned, but is essentially subsidized like many housing organizations already are, then they don't just increase when the next tenant moves in.
My partner is from Vancouver, I’m from Melbourne Australia, we currently reside in Melbourne due to the higher wages here and lower cost of housing, however we are in our late 30s, we both make a good income but can not afford to buy a property. My partner wants to live in Vancouver to be close with her family and I want to be able to facilitate that, but I feel so incredibly deflated knowing I see no opportunity to make that happen, I’m trying to start a business but of course like most start ups it’s a calculated risk that I can’t predict. It’s so frustrating, we are just normal people who want a decent life.
Great interview! The current housing issue is not a supply-demand problem. The free market is never an universal explanation or solution for everything. We’ve seen many times that the economy went against the so-call market rules and government had to step in. If the price is controlled by a handful people, it can never be explained or solved by demand-supply. More builds will not lower the price, instead it may pump up the price, because the new builds are always more expensive and the old builds will follow and increase their prices too. Don’t say that then the people who can’t afford should move to remote area, which is unfair and will kill the city eventually. I guess the wealth in Canada just do not have other places to go rather than all flowing to real estate. Government should encourage more investment in enterprise and innovations.
So many people here don’t realize real estate is a common investment. If you live in it, it is still an investment. A lot of ignorant people here think these rich villains just buy up all the condos and let them sit there empty or something. They don’t even realize how expensive it is to own property 😂😂😂 If you think it’s too expensive then move to a more affordable city, but no, they want it all lmao
I wish this video was a bit longer and asked Prof. Condon for more details about his thought. I suspect he used to view things from simply an economic POV, supply/demand dynamics but now understands that without new policy, more housing just gets gobbled up by the wealthy. With our growth, we definitely need to build; but we need housing policy that helps those who are (re)starting off in life.
It's cheaper to buy a very nice house in the US than a cheap bungalow in Canada. Immigration here is 3.5 times that of the US - one of the reasons. Another reason was the aberrantly low interest rates which permitted builders to charge more and lenders to borrow bigger amounts. The 0 interest rates lead investors to choose real-estate speculation as a way to maximize their money. This further inflated prices. I'm afraid the man interviewed in Vancouver is completely off-track. Even more surprising, considering he's been studying the issue for years.
No point in talking to this guy from Stats Can. He’s not allowed to talk about who’s investing. But in Vancouver everyone understands the source of these artificial prices.
Yes, and it's super problematic because the people buying the properties as investments don't have the same needs as those who will eventually be living in them. It's happened in a number of places in Toronto - areas over flowing with studios or 1 bedroom condos (because that's what many investors are willing / abls to buy), but hardly any larger units that are needed for families.
As the guy stated it's not the rental property that's the problem. If more rentals were good then there wouldn't be a problem. But because they are "investment properties" people jack up the rent to make profits so they can purchase more investment properties. And that prevents people who want to purchase homes from being able to afford them. Listen to the video next time.
At least for the first time I hear someone talking about what should be common sense: it's not about "supply and demand", like politicians want everyone to believe. It's about greed and a system that encourages it in every possible way.
150k people coming to Vancouver a year and 2400 housing starts a year which take longer than a year to complete. Yeah nothing to do with supply. What politician wants you to believe it is a supply problem? They all want to scapegoat foreign buyers, speculators, empty homes, resident investors, underused housing, and the 1%. Addressing the problem would actually take effort and politicians aren't about effort.
@@walnutcontractors5661 the lack of supply doesn't increase the housing costs a penny. What it does is that it creates a situation where the buyers are willing to pay more out of necessity, and the sellers just take as much as they can. There isn't a single reason for the lack of supply to increase costs, other than allowing for the possibility to exploit necessity.
@@MoisesEsquiroletTell me you've never taken an economics class without telling me. Look at places that have no demand - the rust belt in the us - you can get a house for free ! Lots of supply / no demand turned into free housing ! They are literally tearing down houses and turning them back into forest land. You can use policies to prevent lack of supply changing demand but I think you need to move to a different style of government first / quicker to change countries.
We get the evidence, but we don't determine if investment properties are a good or if policy makers are catering to the desires of developers. we let the policymakers determine if they are getting rich off the backs of Canadians.
@@district5198 canada is a SELF PROCLAIMED a free country. name one country or big city that is not happening. i guess you don't read news of other countries and never been to any of these countries. investment properties are NOT banned worldwide and cannot be banned.
@@chrthewrestler2301 self proclaimed free country only! And yes their are plenty of countries world wide that ban investment properties. This is nothing new and needs to be done in Canada.
The problem with Canada is most of its land is unlivable. Majority of the population in Canada either live in Toronto or Vancouver. Competitions drive up property prices. It's not rocket science.
@@CommoditySC But Montreal is nowhere nearly as expensive as Toronto or Vancouver and it's not even among the top 15 most expensive places in Canada to live.
The answer to the housing crisis is simple (NOT easy). A combination of private sector freedoms and public support. This is similar to education policy in most countries where public schools and private schools work together. Allow as much housing that can be built by the private sector - with sensible regulation on structural integrity, safety, health and sanitation. Coordination with transportation policy and public services is very important as well. Japan is probably the best in this as the private sector builds housing at an impressive rate. There is no housing shortage in Japan. Japan is not blessed with plenty of land, they import much of their materials, so US, Canada have no excuses. Where the free market in housing lack is insufficient in providing affordable, safe, and sanitary dwellings, the government can step in and provide public housing or subsidized housing. The best models for this is Austria, Japan, and Singapore.
The biggest problem in North America is car centric policies such as restrictive simplistic zoning and parking requirements. Zoning as done in the US discourages the natural formation of dense mix use walkable neighborhoods in favor of car dependent ones. This makes housing and transportation much more expensive. More land is needed for this type of development. More energy is used daily for simple tasks like going to work, school, getting groceries, etc. In US and Canada, medium density development is seriously lacking - you either get Skyscraper cities like NYC or suburban car dependent sprawl. Although Europe is much better, they also have issues with overregulation. They allow density but only to a certain extent, preferring medium density as opposed to high density. They still limit the size of building, the boundaries of cities, and architectural esthetics. Europe lacks in high density areas like in Asia and North America. All of these government regulations adds to the cost of housing.
Prices of rental goes up because of demand. Most single family rentals do not break even for decades. $3k supports $500K to just come close to break even. How many homes are $500k?
How do you know, Neil? Do you have evidence that 99% of buyers are of Chinese descent and not Caucasians? The nicest mansions in Vancouver are overwhelmingly occupied by white capitalists that made their wages by exploiting workers abroad. But I guess their gross practices can't ever be considered dirty money, because they're white!
a lot of people surnamed wang/zhang/li/chen/gao/chang/mohammadi/hussein/ahmadi/bahman/shah/soroush/khatibi/khan/laleh/elnaz/singh/kaur/dhaliwal/dhillon/grewal/sharma/gupta/sukhdeep/manpreet/gurjeet/ranjit
7:05 it was done here, some apt's kick out tenants Reno the places and jack up the rent or buy houses and wreck them and build condo's so this gentlemen is right
This is very similar to my home town in Central Europe where since I was born there were always not enough appartments and those that were there were always too expensive. Everywhere new homes are built advertising is something like "great revenue for your investment". This has to stop, and people should live in the houses they buy themselves.
That professor’s findings about building more not being a solution is really something that policy makers need to be aware of. It’s common knowledge amongst the top people in the real estate profession, but nobody believes us. That’s one of the reason that real estate investors welcome new construction next door. We’d roll out the red carpet if we could. New construction only serves to attract higher income tenants to an area and drive up rents for all the old places that we own, exactly as the professor pointed out.
Shouldn't Canada lower their taxes so their population has more money to build business? With so much money getting taxed, I would believe Canadian are incentivized to take less risk hence why we have a housing crisis as everyone is trying to make money.
1. BC has to ban any type of renting out dwellings except specially built apartments. This way homeowners "LANDLORDS" would be forced to sell their nonsense houses. 2. Quickly to build those rental apartments without charging taxes from developers.
Has anyone over at the CBC thought about WHY we are having a housing crisis? I know the majority of Canadians are. Also PS : The housing crisis is not unique to Van.
There is no way Greater Vancouver real estate is more expensive than Hawaii or Florida. This is a giant bubble and when it bursts many people will lose everything. The idea that BC doesn't have enough land is laughable. BC is bigger than Germany, France and England combined. Just the lower mainland is bigger than so many countries in the World.
Bc is made mostly of mountains. No one wants to live in the north. Look at a topological map of the Fraser valley, and you'll find that all the land is developed, up to the mountains. The only place to expand is west, towards Hope, but it's a drop in the bucket. If developers were allowed to build 6 storey apartments across the board then yes, the land is no problem. But we can't sprawl any further.
@@kanucks9 hahaha clearly you have not travelled anywhere. Other countries which are much smaller than BC have huge mountains too. There are many countries smaller than the lower mainland which have mountains. BC's livable land is so huge that 100 million people can comfortably live here.
The professor at the end is so refreshing. No nonsense or sugar coating. He knows it's an unfair and rigged game
He's just done with it. Old and younger people should just give up. It's really all just mania.
@@esparda07already have❤
How’s it rigged? People who been in the game longer than you are doing better isn’t rigged it’s how life works. Alberta is few hours away with a ton of affordable why don’t you go buy there? Just admit you’re just lazy and entitled.
Do you understand how the law of supply and demand works?
I think he's full of 💩 - of course, prices haven't been moderated yet, and we still are not building enough to meet demand. SUPPLY AND DEMAND. Very simple. If you are looking for someone to blame - blame NIMBYs
For younger people it's like entering a game of monopoly when the other players already own most of the properties.
In Monopoly, if you only want to buy Boardwalk and won't even look at the other 20 properties, then yeah life would be tough.
You said it right, Vancouver is the Boardwalk. You must paid the price if you want to earn higher rents later.
This reporter doesn’t have a clue about Fraudcouver.
@@hygogc1685you cant even afford to look at the boardwalk in van
Hahahaah time to buy in the territories and Manitoba and Atlantic Canada lol!
Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
@@bernisejedeon5888 I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@yolanderiche7476 Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
@@edelineguillet2121 Big Credits to “Julia Ann Finnicum” she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Julia has been a good guide through the year.
@@yolanderiche7476 She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Great job CBC, keep reporting on this! Nothing changes unless we keep ramping up the pressure on on all levels of government.
Been saying for years that any proprties purchased which are not primary living spaces for the buyer should require a 75% down payment at least for the second home. Anything more than 2 homes you need to buy outright. This should resolve the issue of people using equity to buy homes as investment properties. Also anyone who owns multiple homes shoulf be taxed like crazy on the rental earnings. Everything we've done in canada has led to a culture of greed
This af!!!!! 🎯🎯🎯🎯
That’s why mortgage rates aren’t going down just up
" taxed like crazy on the rental earnings" , that means no one are willing to rent out their unit anymore so will it drives the rent even higher ....
That's it: greed and entitlement.
I like it. Also ban AirBNB, that has had a huge artificial influence on housing prices and availability
Canadas economy relies too much on housing. Diversifying the economy and making other forms of investment more attractive such as businesses, is the only way to fix the problem.
Apparently 20% of Canada's GDP is Real Estate. That's quite high.
@@ironhammer4095damn
Stop wasting the tax payers money on programs the never have and never will work (Start by cutting U.I.C. to 4 months, and kick able bodied young people off of welfare) then LOWER the taxes.Eliminate the Carbon tax. THAT will spike the economy. It will also get people working. I know a place that has been looking for a waitress for 3 months. No applicants. but paying people not to work is a killer
@@glenw-xm5zf Then raise the wages. That's what Henry Ford did. That's Capitalism.
@@ironhammer4095 Wrong. That's inflation. In 1960, I could go to the upscale drive in aka The White Spoot' (Only in B.C.)have a super tasting cheeseburger with onions et al, fries, and a coffee for a dollar. Today $25 bux. I am not an Economics Major but regulations , controls, government intervention and meddling will create inflation. take a look at Canada and the us before 2016, and since 2016. Both bought into and elected a amrxist based dictatorship. We are hooped.. Capitalism is the best tyttem in the world, and it made American the most awesome country on the planet, along with Canada. then the marxistscome and take over and kill the goose that layus the golden eggs, and I have watched this happen from ring iside ever since 1972, when B.C. elected 'the commies' aka NDP. They killed us
I was born in Vancouver, I now live in Alberta and work for the government working in housing and I see stats. People from BC and Ontario are buying up the real estate in Alberta now. Calgary's rental vacancy rate is so low and let me you tell how many of these rentals are investment properties.... I suspect the next Canadian cities to go up in price will be Calgary (already there basically), Edmonton and Montreal. Mass immigration is too much for the available rental inventory.
Which is a shame because Calgary has done a very consistent job with housing and density. It's not Texas in Alberta at all, it's more like suburban Toronto. It fucking sucks that Ottawa and the provinces just make us war it out on eachother rather than change policy away from The Housing Hunger Games. The global money always wins. Remember Canucks: Most "foreign" property investors are AMERICANS. We can blame the money from the USA for this, primarily.
Interesting but lack comparison between population growth and housing availability rate.
50 percent of investments is frightening 😮. Home equity is very dangerous now to use for those types of places.
Vancouver is crazy, ratio of 10 income/property value versus Toronto of 6, shows how unaffordable the Vancouver market is. Problem is the foreign money continues to push up values in Vancouver and likely won't abate. Just means the regular folks can't afford to buy.
The values go up because of DEMAND.. and everyone wants to live here. Newsflash: God isn't making any more land
Exactly. You can find an article in the New Yorker in 2014 called real estate goes global. Where it states that surprisingly the hottest real estate market in north america is in Vancouver which doesnt match the average income... people with money have been buying up real estate because there arent enough safe assets around. And its flowing internationally.
Now theres an interesting video by cbc reporter Utay Lee on missing middle housing in Vancouver.
If you want to build a coach home on your lot, many areas domt have the zoning but if its allowed it will cost 250-350k to build (plus 70k to the city to pay the increased density fee) how many years to get a return on investment? Decades. Its not worth it. If you have the money you can just let it earn 6% and still keep your yard.
It may be worth it for multi generational housing. But do your kids want to be that close?
So shocked... oh wait not. It's the rich just getting richer.
Companies shouldn’t be allowed to buy homes. Houses are for living in, not to be items on asset sheets. How the f is this being allowed. No wonder why buying a home and rental rates are so high.
Simple. Canada's GDP depends on it.
@@shauncameron8390this is Canada not china.
@@Shepardofmanchinada
@@shauncameron8390unfortunately u r correct.
The more the market gets controlled, the higher the misery index will go. Leave business alone. So there is greed. Guess what,poor folks can be greedy too.
HALF ARE INVESTMENT PROPERTIES.
This should be illegal
It's not. It's capitalism. That's what we want right?
I find it really funny when someone says “this should be illegal” and someone else responds with “it’s not”. Like, yeah, we know. That’s why they included “should be” in there. Marlon’s position, of course, is absolutely correct. Also, putting aside the fact that capitalism is basically completely counter-productive to the health and happiness of humanity and the planet, limiting the amount of investment properties someone can posses has nothing to do with any other economic system than capitalism.
The homes with a laneway are expanding housing options, how is this a negative. People need to live somewhere.
Bought by CCP and their families
@@sheilamansell5634 it’s not a negative. It’s just not enough.
After 20 years of this Vancouver housing crisis , why is this the only data you have ? And then they need more years to collect the really important data ? It’s deliberate to obfuscate and deflect so that no reforms can be made and to keep government coffers filled with taxes collected from RE
The data is publicly available. Statscan zhould be a neutral party and that's what he's trying to do here.
I'll have a good reply to write here, but because of the complexity of the topic, I'll need more time to assess the situation to determine what options there are if any moving forward. Please @ me in 6 to 12 months.
Housing should be like a utility, equal access for all. When multi millionaire investors are able to bid up prices beyond what the people who actually live in an area can afford, and then charge high rent because they paid an outrageous price, it creates a road block to life.
Maybe there should be curbs on how much residential property someone can own. Let the millionaires and hedge funds and pension plans invest in commercial, but leave residential out of it. The median income in Canada is $39,500. Half the country makes less, the other half makes more. If $39.5k/yr is the median income, it makes no sense for the average home price to be $700,000. That is the 1% wealthy investors causing hardship to the rest of the country. We see this today with late marriages and a crashing birthrate. The single biggest expense most Canadians have is their homes, and the wealthy are putting the screws to the rest and destroying the future of the country for personal gains.
I should also mention that using average income to determine the wealth of most Canadians is a lie foisted by the rich. If you live in a poor town of 100 people, where everyone has debt and their net worth is around zero (1 in 2 Canadians has a net worth of zero dollars), and Elon Musk moves to your town, he will drag your towns average net worth up to 2 billion dollars per person. Everyone is still broke, but you look rich on paper. Median net worth is still 0, but average is 2 billion.
Half of Canada has a net worth of 0, but average net worth is $740,000, because the top 1% have so much money they make the majority broke nation look rich. And those are the folks buying up all the homes, paying ridiculous prices and driving up the cost of everything as they pursue profit.
Exactly. I have said for many years that housing should not be considered as a vehicle of investment. Housing is fundamental as food!!! No corporate or multiple buying. Ban it !!!
Yesss. This right here is the truth💯👍
GREED. Coward nation a
Of greedy cowards
Sorry, but I feel as if you have completely missed the mark on some of the opinions and data presented in this video. What Prof. Condon was saying was that Vancouver is basically divided into haves and have-nots. Many of the "haves" are haves simply because of a little bit of luck and timing. A lot of people have this idea that it's millionaire foreign investors buying up all the property that is causing housing prices and rents to skyrocket but a lot of these investors are actually your local neighbours. The majority of Canadians actually do not want to see a housing crash. The majority of Canadians own their home. The only people who are truly screwed and hoping for a collapse are first-time homebuyers who have not yet entered the market and make around an average income, because you're right, how can these people afford these prices? These can be young adults and it can also be older adults who were unable or chose not to purchase property roughly 10, 20, 30 years ago when housing was more affordable. Prof. Condon explains that it's people like him, and other boomers, that are lot to blame.
You're also confusing income with net worth. The two are not directly correlated. Also, I don't know where you got your data that 1 in 2 Canadians have a net worth of zero dollars because it's not accurate. Let's talk more about those haves. Basically anyone who purchased a single detached home in Vancouver when it was more affordable to do so are now paper millionaires (eg. purchased house at $200,000 with $40,000 household income and mortgage debt of $100,000 left now worth $1,800,000 = net worth of $1,700,000 which can be tapped as equity). It doesn't matter what their income was and is. This is the story for so many immigrant families as well as local families who came with or made very little money but put everything they had into buying a home. 15-30 years later they're sitting on an investment worth significantly more money that they can use to leverage for a number of investment opportunities. Roughly 1 in 4 BC homeowners are property investors. 1 in 10 have an owner-occupied investment property that is talked about in the video. These haves are using their wealth to generate more wealth. Having experienced tremendous success with the housing market, these people are now leveraging their net worth to purchase smaller properties, particularly condos, as investments. And let's talk about generational wealth transfer. We talked about young first-time homeowners a moment ago. How are these kids fresh out of school and earning $50,000-60,000 able to afford $500,000 condos? Well, it comes down to their "have" parents helping them. Again, these are your everyday neighbours. Many first-time mortgage takers get help from parents in the form of a sizeable financial gift. In Vancouver, apparently that average is $180,000 towards the down payment. Combined with their own savings, that's enough to reduce the size of the mortgage down to something reasonable on an average household income. So "have" parents have now enabled the next generation to also own housing in this crazy market. Other parents purchase an investment property that they rent out until their children are ready to move in.
And in a country where such a sizeable number of people own their own home where housing is the single largest contributor to GDP growth, average net worth has also grown with it. It's not because Elon Musk is moving into your neighbourhood, it's because of housing. Simply, your facts are wrong and housing is the primary driver of net worth growth. We can use Stats Canada quintile data instead of total averages and even medians to see how those who fall into the lowest quintile are doing and also those who presumably own homes and fall in a higher quintile. These numbers have grown significantly between 2000 to now.
Also, I wanted to point out that high rents are often not a direct result of high housing costs. It can be a factor, but market rent is primarily driven by what the market can bear. Simply put, there are enough people who can afford $2500 rent for a 1BR. It is not the renter's problem if the landlord cannot afford their bills. If everyone hypothetically lost their jobs tomorrow and suddenly could only afford $500 in rent, these landlords would no longer be able to charge $2500 even if their monthly housing costs are close to $2500. Rents would drop down to $500 and the landlords who cannot manage will be forced to sell.
And that is my very long winded explanation for why the housing crisis is only a crisis for a select number of people and how so many people are able to afford such expensive housing. It comes down to the fact that many people already entered the market long ago and has profited immensely from a red hot property market.
Around 2010 prices were indeed going up but only in small increments, then in 2015 the bubble burst, and homes that were 250,000.00 went to 350,000.00 then later 500,000.00 and soon 600, 700, 800, and even a million, insane!!!! Even with the bit of money my late father left me, i cannot even afford an older fixer-up mobile home on Vancouver island..
2010 was pretty high due to the building of canada line and the olympic games, but it was still pretty cheap in places like richmond, coquitlum, surrey, langley, now even abbotsford is unaffordable
It started in 2003 when the Olympics were confirmed . My brother is an architect here and he said as soon as the Olympics were a go in Vancouver, he said Asian investors overwhelmed his office with new purchases and new development deals in the lower mainland and Whistler, completely destroyed Vancouver and it’s affordability. Sucks
that sounds like the opposite of the bubble bursting lol
In 1965, a 4 BR home with an in law suite on a 60 foot lot would sell for 22 thousand.. on Van West Side. Ten years later 80 thousand. Ten years later 280 thousand.Then years later 800 thousand, in 2005, 2 million. today 7 million. It is demand. Off shore investors weren't a big factor until Expo 86. Which is when that house was 280g. In 1965, and area pop lower mainland (everything west of Aldergrove) was about 870,000. today it is 2.6 million. So yeah, demand is the catylist
The biggest bubble burst was from 1968, to ap72. A 4 BR homoe on the West side in 1968 would sell for $33g. by aend of '69, same house would sell for $46g. in 1972, same house sold for $78,000. That's 3.6x in 4 years. Sathen there was a lull. Same house in 1978, $85g. 2 years later, same house $350,000. last time I looked, that was almost 4 fold. and the Asian investors weren't here yet. Let me say this one more time. Real Estate prices are demand driven. Price is determined by buyer and seller. . Nobody else.and God isn't making any more land. In Vancouver you have the north shore mountains, you have the US border to the south. Georgia Strait to the west and the Fraser valley on the est narrows to a close at hope. AND EVERYONE wants to live here. Do you see how this works??
I wish this piece went into why increasing supply has not moderated the increase in housing costs. At 6:50 prof. Condon accepts the principle that increasing supply should put downward pressure on prices, but his overall message is that that doesn't work, citing Vancouver's experience over the recent decades as proof. This needs to be sorted out for us, because as it stands, I don't see why he isn't wrong. It looks to me like it is a supply issue, that while a lot of housing has been built, it just hasn't been nearly enough to accommodate our increase in population. If going gangbusters on supply won't halt the inflation of housing costs, that needs to be explained. The longer term project, of returning housing costs to an acceptable fraction of ordinary people's incomes, I think will require more than a better supply/demand ratio. I think that will require somebody's ox be gored. I vote it be the banker's.
No kidding.
We certainly haven't built more units then the number of people who moved into the city in the same time frame, so what the heck is he talking about?
The issue is supply AND affordability. The government needs to build non-profit rentals. I can't imagine that this issue won't impact Vancouver as a city.
@@ArtyMcFly
Caused by zoning restrictions and high land values due to limited land availability.
But there's no revenue in it as renters don't pay property tax the government is dependent on to keep the city running.
Increasing supply won't work directly to force prices down because housing is not ONLY a consumption product. Its also a speculative asset, especially here where as mentioned investment properties and foreign money stashing abound. As long as people believe that the market will go up (and upward population growth pretty much guarentees this) there will be GLOBAL interest in purchasing vancouver real-estate, something supply can never out-pace.
@@brsn2991 I'm starting to see more critique of allowing housing to be a speculative asset.
This is the fundemental issue: we amass data by the bucket, the analysis of which can't be discussed by public policy makers. Why? How can the public understand and participate fully in society if they are not fully informed by those who gather the data and make the decisions?
The information gathered is not for our use, that's why it's collected but not shared.
making inferences and conclusions from data is tricky and requires a lot of subjective/objective analysis and prone to bias. As a statscan employee, he has to be very careful not to give opinions on the data as a flawed interpretation can bite back to him and his department. the statistics department is only supposed to collect and present data properly and comprehensively. Its the policy makers job to analyse and draw inferences and since he is not one of them, he is not giving any opinions.
this was a really good piece! I love that first we got raw data from an expert in that field, then we got some proper analysis from an expert in their field, really nice to see!
Seems like they were afraid to discuss foreign investors using loopholes to circumvent the ban on foreign investment.
This is what I’m trying to say in every video, they need an entire ban on foreign investments. But all these Chinese “Canadian” viewers just skip by those comments without a care because they know it on the inside
“Offshore “ investors is about as close as they’ll come to pointing a finger at the most populous nation on earth. They tiptoe around the reporter’s questions likely because her last name is bait they are afraid to “chew on.”
Obviously because of who’s asking the questions from her untouchable position.
And who do you think sold these foreigner the homes to begin with. FYI ....it was a canadian that sold it to them. Stupid greed. and then whine about it.
Not necessarily foreign investors, but new immigrants with tremendous wealth from elsewhere. Tons of those in Vancouver. Many places have low income tax and high income. Stack up on those $ for 10 years, come to Canada and buy housing. Locals can’t compete
This cannot go on forever.
Housing is a basic need. Plain and simple. No sociologist in the world would deny this fact. So why do our governments, (municipal, provincial and federal), assist the people and corporations that treat housing like a commodity?Especially when these entities use accountants and loopholes to lower the amount of taxes that they pay.
Personally, I feel that it is well beyond time that our governments start to support everyday citizens. Either that or quit expecting everyday citizens to support our governments.
It may be a basic need, but it's not a right. No one is obligated to grant you anything.
@@shauncameron8390 When you deny a person a basic need you are asking for trouble. They may not be obligated to grant me housing, but it would be very unwise not to do so. When this changes from an individual to a mass, big problems will ensue.
That is what irks me the most about this. The sheer stupidity of it. While individuals are increasing their incomes by 10 or 20 or 50 thousand a year we are all paying the extra costs in social services, more policing, extra medical costs and experiencing greater levels of crime. Homeless people do not respect the system or abide by it's rules. Why would they, after the system has let them down.
Any sociologist or political scientist will tell you that as the number of homeless increases the societal cost increases exponentially. How much extra income is needed to deal with the trauma of having yor car or home broken into. Or heaven forbid something worse. Then there are the times that your heart races when encountering one of these people on the street or in your alley. I really don't see any winners here. In some way shape or form we all lose from this.
As I said, no one is obligated to grant me anything. But it would be wise to ensure that my basic needs are met. And I haven't even touched upon the lack of motivation that many will have at working hard. Why break your back when you can't afford the rent?
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When I was a adolescent, all my childhood friends were the children of Big Circle Boys, 14K, and Lotus members. They all had multiple homes within 5 years of immigrating to Canada. Now, I know a few of them that even have mansions in Shaugnessy, West Point Grey, and West Vancouver. This is who buys them. 💯
and who do you think sold it to them.... a canadian
GreedyWhite Canadians sold them those homes because they want to retire with 7 figures
and that SHOULD be illegal. But. How do you prove one is a Tong? Or a Triad? then there are the civil rights lawyers and the laws against discrimination. Lee Kai Cheng (sp?) bought up false Creek after expo, and I understand HE is a Triad member, they make the H.A. look like choirboys. I think we are being taken over in more ways than one.
It's not the supply of appartements and condos that is the problem. It's that they are build to be more and more luxurious instead of affordable. How the **** are you guys missing the point that bad!?
By trying to increase the supply quickly, the developers have been building super highrises, which is something politicians and voters were all supporting as well. Structural demand and complexities as well as construction costs start to increase per square unit area rather than decrease past a certain storey height, around past 12 storeys. So the 30, 40-storey condos you see actually cost a huge amount of money to build. The only way to make up for that cost on top of the money they had to pay to greedy landowners is to value engineer it even further into "luxury condo" territory to justify the price tag. That is because people generally stay away from basic, barebone properties that cost a ton, but luxury buyers care less about the price differences as long as it's offering something that's appealing to them.
So yes, Vancouver's efforts to super-charge supplies has indeed backfired in an almost irresversible way.
@@teasea546 they wouldn't run into the high rise construction efficiency issue if the city legalized low and mid-rises across the city
That's because due to city zoning restrictions, those are the only kinds of housing they're legally allowed to build with a decent ROI.
The issue is that housing has turned into a commodity. People who already have housing can buy more housing. Corporations buying up properties. These people then set the prices on rentals.
New Condo in Mapleridge. 2 br: $600,000.
This is why everyday people can't afford to buy or rent a home.
It's always been like that in Vancouver and Toronto. Canadian investors have been controlling the market by speculating. Of course they are hiding it.
Yet 66% of everyday Canadians are home-owners.
Did they link to the statistics anywhere? I don't see it? Feel like that should be the first possible link.
Because the rent is considerably higher than the mortgages. Not just expensive to buy to build too, or any thing else related to the houses
This is false.
Rent is cheaper.
In Vancouver, that is indeed the case. However, both are way too high, and the renters’ lower rate is actually much higher in comparison to their income/net worth than most investors’ mortgage payments, and that’s really more important than simply the numbers.
@@John-uk3wz no it is not? A mortgage is close to 3-4k on a 1 million dollar apartment.
@@joeisawesome540 i was paying 3.2k for a old run down house in East van with a few roommates. that 1.8 mill house would be 8,900 monthly mortgage 20 % down
@@richchay insane
A classic story of people who have wanted to protect what they have.. and those who do not have, will have a harder time getting what they want.
I am beyond amazed at the extent to which the citizens of Vancouver are unaware of how rapidly this city is sinking.
Believe me, most of us are very aware. I was born here in 1945. Seen a few changes. City government is a big factor in the demise of this once great city
And the 1,055,000 people who immigrated to Canada didn't buy?
You'd think that if real estate prices got higher than most could afford (as is currently the case) market forces would force those prices down. Yet, they don't go down as SOMEBODY seems to be able to pay these high prices. This seems to be an indicator of the gross wealth inequality in this country.
It's Chinese millionaires buying property as insurance.
Can we make other cities more attractive to live in thereby relieve the pressure on big cities? There are a lot of small communities in Canada that are losing population.
This^. Premier Eby has told certain communities they MUST increase housing availabilities. It's obviously not the solution as is said here. Give incentives to businesses to move to small communities so people can find work in those places, places where you can buy a whole house for less than a Vancouver condo. Or find incentives for businesses to allow more work-from-home situations.
You can if you will stop it from deep freezing 4 months a year in Edmonton and Calgary, and Winnipeg..and Red Deer, and Prince George (both have hella crime rates) and also stop the snow from piling up in Cranbrook.. but that aint gonna happen so everyone wants to live HERE, or in nanaimo, or Victoria, or Courtenay, or etc. All you need is a million bux and then you han buy a condo there. Twice that for Vancouver. It cannot be fixed
@@Sqmsh_Patricia EBY needs t keep his nose out of business.Especially Real Estate. He has no clue, and has zero business acumen. So sad he got elected. Bonnie Henry is worse, and Vancouver's mayor is worse than any of them. I cannot remember when they ever had a good one. Throw out the left and then watch what happens. Since they got in, the misery index only goes higher. AND, as long as they are in, it will only get worse. The homeles and DTES is a total mess, as is the soft on drime city government. The violent ones are out 2 hours after they are arrested, to attack someone else with a hammer. and Kennedy Stewart wants to DE fun the police. Do you see anything wrong with that picture??
Ban short term rentals in Canada....
Where did they get that Housing Price to Income Ratio from? According to the CREAB, median house prices for Toronto and Vancouver are nearly on par, and according to StatCan median household income in both cities is also nearly on par. So how is the ratio between the two 6 to 10?
And it is only the all --- affluent,all --- rich and the all --- wealthy as well as the all --- financially --- stable fellow Canadians are the only ones who can afford our ridiculous,insane and outrageous market prices of our Canadian real estate market that skyrocketed many,many and many times since the 1990's decade.
Good reporting, well done. I came into this video expecting the reporter to be like "yes i love expensive home, line go up!" but that didnt happen
Municipal government, banks and developers are all working together to their own benefit and greed that resulted in this bubble. More supply means more money for developers. More housing projects means more lending (interest income) for banks. Higher housing prices means higher property tax revenue for the government. Why would they want to change this formula when all these parties are benefiting from this. The question is: who are these "investors"? Is it dirty money? Difficult to believe that retired boomer couples can borrow money from the bank purely based on their home equity. I think the bank needs steady flow of income and as a retired couple, how much property can you buy with a fixed pension income? I would look at how much money is coming from outside Canada and who are they? Have these people bought their citizenship as an investor to make it look like they are just wealthy Canadians? CBC I hope you will take a closer look at the buyers.
What about higher land values? They're part of the reason for higher housing prices.
single family detached homes are not for investors and lived by owner, while condos built now are 50% for investors.
then isn't rezoning and densifying land to build new condos would mean inviting more investors and chase away actual local residents?
Interesting video and I liked that he didn't attempt to speculate on causes or impact. However, when they talked about investment properties often being used as rentals, it raised a question that was not asked in the interview. What percentage of those investment properties are leveraged in the short-term rental market (AirBnB) as opposed to long-term? I suspect (fear) that a large part of the reason for spiraling rental rates is because many investors prefer the more lucrative short-term rental market, which helps to contribute to the lack of availability of rental units for people who need them.
The issue is, there may be enough supply for people to LIVE in, but that's not all the supply is used for! When you're competing against wealthy foreign investors and speculators, it's a totally different ballgame. Surely, there has to be SOME amount of supply that, if built, would start leading to a drop in prices. But how much investor money would that sponge have to soak up before it got saturated? In Canada? And Vancouver specifically? A coastal city with natural beauty, voted "most livable" several years running, located in a free, relatively safe country with barely 40 million people of its own, surrounded by 2 oceans, little pollution, the US to the south, etc, etc? That supply "sponge", faced with the investment hunger of people who are the wealthy elite in their respective countries the world over? Yeah. It's going to take a lot of supply before that sponge starts feeling anything less than soaking wet.
It's simple supply and demand. Vancouver is the most desirable city in this dreaded country (in terms of weather). Hence the imbalance in supply and demand driving the price up. There's no way to change it other than making it less desirable (like higher crime rate, less job opportunities and of course higher prices), but do we want that? That's the dilemma.
Or they could stop selling the entire place out to Chinese Hong Kong foreign investors and speculators that do nothing more than Park their money here gut out neighborhoods and communities and leave the whole place garbage
@@3to1media
Then ban investor immigration.
The game 'Monopoly' is pretty spot on with regards to this: if you don't have any properties, you just pay and pay, and if you have hotels and houses on 'Boardwalk' you make loads of cash from the other players, but that's when the game ends.... so when does this whole thing end and just cave in eventually? Who's turn is it to roll the dice?
It happened throyghout history. When wealthy own entire city blocks, and poor reach a level of unable to improve status in life despite hard work, there is revolution for a reset.
Not just only pay and pay, like a lot of people did is to find ways to be way ahead of the game. There are many people be able to find ways to beat the mortgage and eventually own a house. It's all about knowing how you invest and how you do you money managements.
The issue that Patrick isn't bringing up is the low vacancy rate in Vancouver. When vacancy rates
High immigration is compounding the problem.
@@ironhammer4095to a certian point. but when prices are so unaffordable for us. how are people from India, Thailand, or Africa supposed to come and spend more money on 1 year of rent than their entire family makes working for 10 years
@@fallingpizza11 because the elites running the country want to extract money from you (via rents) and to keep the wages down. That's what your purpose is. They don't care about you except to extract work out of you cheaply and then extract your wages from you via rents. That's what they're bringing you in for.
Make it illegal for companies and corporations to own residential properties and put a cap on how many investment properties a single individual can own (like, 3 for example)
How about like zero
I live on the west side of Vancouver and see many family homes being turned into B&Bs and Air B&Bs, this is why many former rental properties are gone.
AirBnB's are one of the results of government restrictions making rental properties not worth the hassle.
Throw out the lefties. Eby, Ken Stewart et al. they are killing that city
Everybody blames Chinese buyers. The truth is, every single local is buying. If you go to BC talk to people, they tell you can’t call yourself local unless you own 2 or more properties. Realtors are buying, local owners are buying 3rd property, and mortgage brokers are buying, and heck, realtor and broker will sign together to buy. but when the time comes, everybody needs an escape goat so, Chinese. Oh, people suddenly forgot city of Surrey is full of Indians and that was the affordability line 8 years ago. Likewise, those Indians can be Chinese when the time is right.
Majority of housing are still owned by older white people
@@tylerking5214
And 55% of people in the Greater Vancouver area are home-owners. Renters are the majority only in Vancouver proper.
I have a friend ( who immigrated to Canada 9 years ago from Europe) complaining UBC has been occupied by mostly Chinese students and he forgot Chinese can be Canadians too. That explains why people only call me 'Chinese' even I have been living in Canada for almost 50 years. If I buy a house, people will say ' the house was bought by a Chinese'.
Ya who’s to say that they are buy on their behalf
We already know this 10+ years ago... problem was, various government levels claimed they're just 'anecdotal' evidence.... today we have Stats Can. to backup that evidence... yeah keep building... will just get snapped up by flippers... maybe governments wait until 80% investor/foreigner owned, then they'll consider changing policies....
Why is it so hard to understand that when you allow illegal money (because it has not been declared to the authorities in the country of origin) to flow out of China and into the property market in Vancouver the locals will not be able to buy a home. The buyers are motivated by getting their funds out of China so they really don't care about the price. When a doctor can't afford to buy a house for his family isn't that the big red flag you need? Stop the illegal flow of funds and housing prices will come down so that the average salary will by able to pay off a house in 20 years.
I'd like to hear the Professors idea of the solution. He basically just denied everything we've been trying and gave no alternatives.
LVT
Because he wants it to be that way! Why would he want his property prices to go down?
He's spoken and written a lot about alternatives! Find more of his content online.
The downside of living in Vancouver is that you have to live in Vancouver.
In Halifax, they are doing this and prices go to 1400 to 2000 month
They as in people who got priced out of Toronto moving in.
Makes you wonder why CBC would not investigate what % of the property investments is done by foreigners? StatsCanada has this data, including that most $$$ into Vancouver RE comes from China. Also, increase in RE pricing is directly correlated with immigration levels. Canada has BY FAR the greatest ratio of importing people to existing population which is done essentially for ideological rather than ‘economic’ reasons. In other words, CBC demonstrates again that it is not in the business of truly informing Canadians of what really matters to them.
this is simply not true.
Here is quote from stats Canada : Beginning with the Greater Vancouver Area, 4.8% of residential properties are owned by non-residents
What you are saying is simply not true. Most properties are owned by Boomer generation. I am sick of tired of people blaming others instead of looking at themselves.
here is another stats:
40% of boomer homeowners have at least half of their net wealth in real estate
17% of boomer homeowners currently own more than one property.
66% of Canadians own their own property.
64% of boomer homeowners are mortgage-free
Here are the facts. If you want to bring up foreigners mess up demand bring up the stats don't just make up random things to blame others.
Just as an interesting fact that the investors are the ones who actually helping build these buildings as in Canada a contractor can’t usually obtain the capital to actually build without selling at least %50-%70 of that project
Investing into real estate is unethical. It's purely extractive and should be taxed into oblivion.
Taxed to immigrants, not to people born in Canada. You increase the taxes even more and you just create a situation where China can afford and Canadian citizens can't. People buying from out of country are the ones who should pay insane taxes.
@@Samuri5hit84 immigrants are absolutely not the problem. It's institutional investors that are domestic and international and the lack of building affordable housing.
Investing in Real estate is wise, and the taxes should be lessened. Investing in blue chips is wise. I think dividends and Capital gains taxed only by ten percent. Then guys like you would have more incentive to invest your hard earned money (assuming you don't work for the government) Investing in Mutual funds 's is wise. Not investing at all is exceedingly stupid
@@glenw-xm5zf real estate is a purely extractive industry and is essential for all humans to have. It shouldn't be a vehicle towards wealth and again, should be taxed into oblivion. All the other things you listed are great examples of appropriate investment. And no, I am a business owner.
@@frostman9661 Good you own a business. that takes courage. Here is how it should work. Investor purchases a diestressed property, maybe 90 cents on the dollar. THEN does some improvements, (it has to have the right things wrong ith it) Maybe they remove the thorny bush from the back yeard, paing fhe front porch, and spruce up the kitchen.. THEN thy sell the house at a price that covers the expenses, and puts 8-10 percent intheir pockets. The new guyer gets a home that is in better shape, SO win win win. the 3rd win is for first seller, who might have been facing forclosure. It works great.. but like most people, I don not like what is happening today. with people buying up blicks or proberty and then getting people to bid up the price. There are some very ruthless Real Estate sales people in Vancouver.. and hint: Most of them weren't born there
professor seems defeated.. at least an honest answer compared to most 'academics" who comment and unfortunately influence and dictate policy on the real estate world from a purely academic perspective..
I find it amazing that we continue to be rude to each other in the fact that housing of any type
It's been who's for primary family.
Anywhere in canada homes are used as investmand it's no claim I live in oshawa. And i'm surrounded by rental property. I go to city hall look up the property listing owners are in a different location and address. On top of that they turned most of the rental property into non legal confining units
Every politician is aware of this right from the councillors, regional Is counselors mayor Write up to the province right into ottawa. It's a joke because they all want their steak and lobster while the rest of us suffer.
The talk is cheap But this particular journalist slash reporter is seeing the truth. I usually despise anyone from the cbc but her she's dead on about this situation.
And who do you think sold them the property to begin with A CANADIAN. gesh. sold to make greedy money and then whine that its too expensive. you can thank a canadian for that.
So we should just ban ppl from owning a second home as investment property
The funny thing is that lots of "investment properties" are actually now being owned by actual businesses, and run purely for large profit.
I like that idea. A home to live in. Period. Make your millions off your neighbours some other way, but NOT by jacking up house and rental prices.
This makes no sense
I love this reporter. We need more of her.
What do you “love” about her?
@@Stop_Loss would love to sleep with her
@@KenGold666
ROFL.
I'm very concerned that the banks and other business entities now buying properties as investments, its doing tge same thing abd making it a hell scape
anyone has a link to the actual stats?
This is Capitalism. You either understand the rules of the game, or it's game over for you.
It's not just Vancouver, but other big cities like Beijing, Shanghai, HK, London, Sidney, NYC, LA, Taipei, and Tokyo are very expensive for the average joes.
The nature of Vancouver attracts people, unfortunately the land is limited so paying a premium is normal
Are purpose built rentals considered the same as Non-market rental housing? I'm thinking not.
If rent is not tied to the market - not privately owned, but is essentially subsidized like many housing organizations already are, then they don't just increase when the next tenant moves in.
My partner is from Vancouver, I’m from Melbourne Australia, we currently reside in Melbourne due to the higher wages here and lower cost of housing, however we are in our late 30s, we both make a good income but can not afford to buy a property. My partner wants to live in Vancouver to be close with her family and I want to be able to facilitate that, but I feel so incredibly deflated knowing I see no opportunity to make that happen, I’m trying to start a business but of course like most start ups it’s a calculated risk that I can’t predict. It’s so frustrating, we are just normal people who want a decent life.
Great interview! The current housing issue is not a supply-demand problem. The free market is never an universal explanation or solution for everything. We’ve seen many times that the economy went against the so-call market rules and government had to step in. If the price is controlled by a handful people, it can never be explained or solved by demand-supply. More builds will not lower the price, instead it may pump up the price, because the new builds are always more expensive and the old builds will follow and increase their prices too. Don’t say that then the people who can’t afford should move to remote area, which is unfair and will kill the city eventually. I guess the wealth in Canada just do not have other places to go rather than all flowing to real estate. Government should encourage more investment in enterprise and innovations.
Why would you conduct an interview beside a busy road?
So many people here don’t realize real estate is a common investment. If you live in it, it is still an investment. A lot of ignorant people here think these rich villains just buy up all the condos and let them sit there empty or something. They don’t even realize how expensive it is to own property 😂😂😂
If you think it’s too expensive then move to a more affordable city, but no, they want it all lmao
I wish this video was a bit longer and asked Prof. Condon for more details about his thought. I suspect he used to view things from simply an economic POV, supply/demand dynamics but now understands that without new policy, more housing just gets gobbled up by the wealthy. With our growth, we definitely need to build; but we need housing policy that helps those who are (re)starting off in life.
Lieun Yeung is doing a tremendous work on Vancouver's problems. If only our politicians here in Montreal could watch and learn from it !
So much for Valerie Plante being the answer.
It's cheaper to buy a very nice house in the US than a cheap bungalow in Canada. Immigration here is 3.5 times that of the US - one of the reasons. Another reason was the aberrantly low interest rates which permitted builders to charge more and lenders to borrow bigger amounts. The 0 interest rates lead investors to choose real-estate speculation as a way to maximize their money. This further inflated prices. I'm afraid the man interviewed in Vancouver is completely off-track. Even more surprising, considering he's been studying the issue for years.
Why is our immigration so high
@@KenGold666 I don't know, ask Trudeau. To be fair it started already under the Conservatives to a lesser extent.
@@KenGold666 because they want to replace you, wake the F up
@@shauncameron8390 Is that a slur? The houses I saw were in suburbs on the Eastern seabord.
More snow in Vancouver than in Montreal...🤔🇨🇦
No point in talking to this guy from Stats Can. He’s not allowed to talk about who’s investing. But in Vancouver everyone understands the source of these artificial prices.
Investment Property = Rental Property
So, basically, half of the properties are rental units
@@Entuaka highly unlikely to be the majority... Maybe 5% of the total units.
@@Entuaka unlikely after BC introduced its higher vacancy taxes.
Yes, and it's super problematic because the people buying the properties as investments don't have the same needs as those who will eventually be living in them. It's happened in a number of places in Toronto - areas over flowing with studios or 1 bedroom condos (because that's what many investors are willing / abls to buy), but hardly any larger units that are needed for families.
As the guy stated it's not the rental property that's the problem. If more rentals were good then there wouldn't be a problem. But because they are "investment properties" people jack up the rent to make profits so they can purchase more investment properties. And that prevents people who want to purchase homes from being able to afford them. Listen to the video next time.
so if such a high % of condo's are on the market for investment how would they regulate that? or slow it down? tax it high maybe?
At least for the first time I hear someone talking about what should be common sense: it's not about "supply and demand", like politicians want everyone to believe. It's about greed and a system that encourages it in every possible way.
lol. you are clearly not in economics.
@@jacksoncn lol you clearly believe the rules of economics are natural immutable laws of the universe and not a human invention.
150k people coming to Vancouver a year and 2400 housing starts a year which take longer than a year to complete. Yeah nothing to do with supply. What politician wants you to believe it is a supply problem? They all want to scapegoat foreign buyers, speculators, empty homes, resident investors, underused housing, and the 1%. Addressing the problem would actually take effort and politicians aren't about effort.
@@walnutcontractors5661 the lack of supply doesn't increase the housing costs a penny. What it does is that it creates a situation where the buyers are willing to pay more out of necessity, and the sellers just take as much as they can. There isn't a single reason for the lack of supply to increase costs, other than allowing for the possibility to exploit necessity.
@@MoisesEsquiroletTell me you've never taken an economics class without telling me. Look at places that have no demand - the rust belt in the us - you can get a house for free ! Lots of supply / no demand turned into free housing ! They are literally tearing down houses and turning them back into forest land. You can use policies to prevent lack of supply changing demand but I think you need to move to a different style of government first / quicker to change countries.
Perhaps it is time, to know where this money is coming from?
We get the evidence, but we don't determine if investment properties are a good or if policy makers are catering to the desires of developers. we let the policymakers determine if they are getting rich off the backs of Canadians.
When toilet paper was in short supply, we limited it to two rolls per person.
sadly those two roll limits didn’t apply to the wealthy, there are always loopholes for the rich
Investment Properties should be BANNED and made illegal. Bottom line!
we are a free country and it happens every where in the world.
@@chrthewrestler2301 1, Canada is not a free country. 2 No it does not happen everywhere in the world. 3, Investment properties should be BANNED.
@@district5198 canada is a SELF PROCLAIMED a free country.
name one country or big city that is not happening. i guess you don't read news of other countries and never been to any of these countries.
investment properties are NOT banned worldwide and cannot be banned.
@@chrthewrestler2301 self proclaimed free country only! And yes their are plenty of countries world wide that ban investment properties. This is nothing new and needs to be done in Canada.
I agree. The people that have them don't even need them.
Great story - thanks
The problem with Canada is most of its land is unlivable. Majority of the population in Canada either live in Toronto or Vancouver. Competitions drive up property prices. It's not rocket science.
LOL couldn't be more wrong. Montreal is the second biggest metro for starters.
@@CommoditySC
But Montreal is nowhere nearly as expensive as Toronto or Vancouver and it's not even among the top 15 most expensive places in Canada to live.
@@shauncameron8390 Following me around youtube i see
Plus, 89% of the land is Crown-owned and apparently Canada has to ask the UK for permission to make use of it.
Curious, why hasn’t increase supply pushed down prices?
The answer to the housing crisis is simple (NOT easy). A combination of private sector freedoms and public support. This is similar to education policy in most countries where public schools and private schools work together.
Allow as much housing that can be built by the private sector - with sensible regulation on structural integrity, safety, health and sanitation. Coordination with transportation policy and public services is very important as well.
Japan is probably the best in this as the private sector builds housing at an impressive rate. There is no housing shortage in Japan. Japan is not blessed with plenty of land, they import much of their materials, so US, Canada have no excuses.
Where the free market in housing lack is insufficient in providing affordable, safe, and sanitary dwellings, the government can step in and provide public housing or subsidized housing. The best models for this is Austria, Japan, and Singapore.
The biggest problem in North America is car centric policies such as restrictive simplistic zoning and parking requirements.
Zoning as done in the US discourages the natural formation of dense mix use walkable neighborhoods in favor of car dependent ones. This makes housing and transportation much more expensive. More land is needed for this type of development. More energy is used daily for simple tasks like going to work, school, getting groceries, etc.
In US and Canada, medium density development is seriously lacking - you either get Skyscraper cities like NYC or suburban car dependent sprawl.
Although Europe is much better, they also have issues with overregulation. They allow density but only to a certain extent, preferring medium density as opposed to high density. They still limit the size of building, the boundaries of cities, and architectural esthetics.
Europe lacks in high density areas like in Asia and North America.
All of these government regulations adds to the cost of housing.
@@Basta11
Like every other US city. LA, Houston, Miami, etc.
But many Asian cities are suffering from overcrowding and poor air quality.
Prices of rental goes up because of demand. Most single family rentals do not break even for decades. $3k supports $500K to just come close to break even. How many homes are $500k?
It’s sickening how Canadians dance around the truth with a smirk on his face. Everyone know who’s buying these homes. 😊
... with a smirk on their* faces*.
How do you know, Neil? Do you have evidence that 99% of buyers are of Chinese descent and not Caucasians? The nicest mansions in Vancouver are overwhelmingly occupied by white capitalists that made their wages by exploiting workers abroad. But I guess their gross practices can't ever be considered dirty money, because they're white!
a lot of people surnamed wang/zhang/li/chen/gao/chang/mohammadi/hussein/ahmadi/bahman/shah/soroush/khatibi/khan/laleh/elnaz/singh/kaur/dhaliwal/dhillon/grewal/sharma/gupta/sukhdeep/manpreet/gurjeet/ranjit
Your point? Spit it out!!
7:05 it was done here, some apt's kick out tenants Reno the places and jack up the rent or buy houses and wreck them and build condo's so this gentlemen is right
This is very similar to my home town in Central Europe where since I was born there were always not enough appartments and those that were there were always too expensive. Everywhere new homes are built advertising is something like "great revenue for your investment". This has to stop, and people should live in the houses they buy themselves.
That professor’s findings about building more not being a solution is really something that policy makers need to be aware of. It’s common knowledge amongst the top people in the real estate profession, but nobody believes us.
That’s one of the reason that real estate investors welcome new construction next door. We’d roll out the red carpet if we could. New construction only serves to attract higher income tenants to an area and drive up rents for all the old places that we own, exactly as the professor pointed out.
The role of stats can is to have productive discussions. Yet it doesnt seem to be happening
Shouldn't Canada lower their taxes so their population has more money to build business? With so much money getting taxed, I would believe Canadian are incentivized to take less risk hence why we have a housing crisis as everyone is trying to make money.
1. BC has to ban any type of renting out dwellings except specially built apartments.
This way homeowners "LANDLORDS" would be forced to sell their nonsense houses.
2. Quickly to build those rental apartments without charging taxes from developers.
To Corporate investors.
Very informative. Thank you
CBC needs to open all comment sections on ALL VIDEO RELEASES ON RUclips ......STOP CENSORING....
The comment section does NOT pass the vibe check 💀
Has anyone over at the CBC thought about WHY we are having a housing crisis? I know the majority of Canadians are. Also PS : The housing crisis is not unique to Van.
He's a professional
There is no way Greater Vancouver real estate is more expensive than Hawaii or Florida. This is a giant bubble and when it bursts many people will lose everything. The idea that BC doesn't have enough land is laughable. BC is bigger than Germany, France and England combined. Just the lower mainland is bigger than so many countries in the World.
Bc is made mostly of mountains.
No one wants to live in the north.
Look at a topological map of the Fraser valley, and you'll find that all the land is developed, up to the mountains. The only place to expand is west, towards Hope, but it's a drop in the bucket.
If developers were allowed to build 6 storey apartments across the board then yes, the land is no problem. But we can't sprawl any further.
@@kanucks9 hahaha clearly you have not travelled anywhere. Other countries which are much smaller than BC have huge mountains too. There are many countries smaller than the lower mainland which have mountains. BC's livable land is so huge that 100 million people can comfortably live here.
We have data on air bnb, data on housing investments for a long long time. Now some action please.
Should it this housing give those homeless in need than built for wealthy? More people suffered in colds 🥶, hard to get shelter