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  3. Too much, or too little: Has the housing crisis led to overbuilding?

Too much, or too little: Has the housing crisis led to overbuilding?

Scheduled Pinned Locked Moved Canada
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  • Sunshine (she/her)S This user is from outside of this forum
    Sunshine (she/her)S This user is from outside of this forum
    Sunshine (she/her)
    wrote on last edited by
    #1
    This post did not contain any content.
    Link Preview Image
    Too much, or too little: Has the housing crisis led to overbuilding?  - Halifax Examiner

    “We need more public housing and we need more affordable housing. There aren’t enough non-profit and community-owned housing in our province, and that needs to change.”

    favicon

    Halifax Examiner (www.halifaxexaminer.ca)

    S streetfestival@lemmy.caS 2 Replies Last reply
    6
    • Sunshine (she/her)S Sunshine (she/her)
      This post did not contain any content.
      Link Preview Image
      Too much, or too little: Has the housing crisis led to overbuilding?  - Halifax Examiner

      “We need more public housing and we need more affordable housing. There aren’t enough non-profit and community-owned housing in our province, and that needs to change.”

      favicon

      Halifax Examiner (www.halifaxexaminer.ca)

      S This user is from outside of this forum
      S This user is from outside of this forum
      sbv@sh.itjust.works
      wrote on last edited by
      #2

      Unfortunately, I can’t read the article due to a paywall. Given my current experiences, however: no.

      It’d be fair to say we aren’t building enough decent inexpensive housing, but I don’t feel like there’s enough decent expensive housing, so it’s moot.

      BeBopALouieB 1 Reply Last reply
      6
      • Sunshine (she/her)S Sunshine (she/her)
        This post did not contain any content.
        Link Preview Image
        Too much, or too little: Has the housing crisis led to overbuilding?  - Halifax Examiner

        “We need more public housing and we need more affordable housing. There aren’t enough non-profit and community-owned housing in our province, and that needs to change.”

        favicon

        Halifax Examiner (www.halifaxexaminer.ca)

        streetfestival@lemmy.caS This user is from outside of this forum
        streetfestival@lemmy.caS This user is from outside of this forum
        streetfestival@lemmy.ca
        wrote on last edited by
        #3

        I live in Toronto and can speak to what’s happening here. The financialization of housing is to blame. Most new builds are condos, many units are smaller than most people would want to have a family in.

        Link Preview Image
        Chart Storm: Five graphs on Toronto’s historic condo market collapse

        favicon

        (thehub.ca)

        Some of the condo units for sale in Toronto are about 550 square feet, are cheaply made, have poor layouts and are listed for over $760,000; small, subpar quality, and expensive.

        The quantity of unsold completed units has more than doubled compared to last year, marking the highest level of unsold completed units in Toronto since the first quarter of 1993. Experts at the real estate think tank Urbanation anticipate that the increase in completed and unsold inventory will persist in 2025, with an additional 2,411 unsold units expected to be finished by the close of 2025.

        So what’s being built is designed to meet investor interests but not community needs.

        These units are also listed at incredibly high prices, so that if interest rates drop a bit, units lose the value they are listed at pre-construction, and quickly become negative assets from the perspective of a homeowner versus a long-term investor.

        And all this is market-priced housing, not the subsidized housing we desperately need in addition to affordable and adequate market-based housing.

        Affordable housing was a non-partisan issue before the financialization of housing in Canada in the 1990s

        T 1 Reply Last reply
        11
        • streetfestival@lemmy.caS streetfestival@lemmy.ca

          I live in Toronto and can speak to what’s happening here. The financialization of housing is to blame. Most new builds are condos, many units are smaller than most people would want to have a family in.

          Link Preview Image
          Chart Storm: Five graphs on Toronto’s historic condo market collapse

          favicon

          (thehub.ca)

          Some of the condo units for sale in Toronto are about 550 square feet, are cheaply made, have poor layouts and are listed for over $760,000; small, subpar quality, and expensive.

          The quantity of unsold completed units has more than doubled compared to last year, marking the highest level of unsold completed units in Toronto since the first quarter of 1993. Experts at the real estate think tank Urbanation anticipate that the increase in completed and unsold inventory will persist in 2025, with an additional 2,411 unsold units expected to be finished by the close of 2025.

          So what’s being built is designed to meet investor interests but not community needs.

          These units are also listed at incredibly high prices, so that if interest rates drop a bit, units lose the value they are listed at pre-construction, and quickly become negative assets from the perspective of a homeowner versus a long-term investor.

          And all this is market-priced housing, not the subsidized housing we desperately need in addition to affordable and adequate market-based housing.

          Affordable housing was a non-partisan issue before the financialization of housing in Canada in the 1990s

          T This user is from outside of this forum
          T This user is from outside of this forum
          teppa
          wrote on last edited by teppa@piefed.ca
          #4

          The financialization of housing is just monetary policy. The Bank of Canada gutting rates and doing QE is meant to entice people to sell their homes, and prices rise until people do it, in which case a mortgage is created as new cash in the economy and the house is securitized as a loan.

          This then feeds into aggregate demand, to attempt to derive a 2% inflation target using an index that contains subjective hedonic adjustments to lower the value of goods, substitutions so as consumers buy cheaper food the CPI changes. The CPI also excludes housing appreciation but includes mortgage interest, so the Bank of Canada can print money to buy half of all mortgage bonds to raise home values, while effectively lowering inflation and depressing interest rates to further inflate home values.

          Link Preview Image
          Operational Details for Government Purchases of Canada Mortgage Bonds

          In the 2023 Fall Economic Statement, the Canadian government announced its intention to purchase Canada Mortgage Bonds (CMBs), beginning in 2024, up to an annual maximum of $30 billion while ensuring that the pace and volume of these purchases are appropriate for market conditions.

          favicon

          (www.bankofcanada.ca)

          So really our government is simply antagonistic to renters and non-home owners, using financial repression to milk them for fake GDP growth.

          1 Reply Last reply
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          • S sbv@sh.itjust.works

            Unfortunately, I can’t read the article due to a paywall. Given my current experiences, however: no.

            It’d be fair to say we aren’t building enough decent inexpensive housing, but I don’t feel like there’s enough decent expensive housing, so it’s moot.

            BeBopALouieB This user is from outside of this forum
            BeBopALouieB This user is from outside of this forum
            BeBopALouie
            wrote on last edited by
            #5

            Here you go

            archive.is

            favicon

            (archive.is)

            1 Reply Last reply
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