TLDR: Despite expected rate cuts by the Bank of Canada, housing remains unaffordable for many Canadians due to high home prices, weak spending power, and rising demand from immigration. Mortgage rates are easing, but not enough to offset these challenges. Experts predict it could take a decade for affordability to return. Even in major markets like Toronto and Vancouver, prices remain too high for many buyers. Recent government measures to extend mortgage amortizations aim to help, but critics fear they may actually increase demand and drive prices up further.
Hicalibre on
When, instead, of trying to combat house prices you instead let us take out larger, longer, loans with smaller down-payments….what do you expect?
Creativator on
Stop watching prices, start watching the supply chain. What’s in the pipeline in terms of new housing? How is it evolving?
Far_Rabbit_7093 on
have to be smooth brained to invest all your money in Canada, SP500 will outperform Canadian RE by 10x between 2025-2030. Its literally in the numbers, Chinese money is gone.
pepelaughkek on
Lowering rates doesn’t increase affordability because the actual house prices increase.
What increases affordability is more housing and less housing competition. That means building more housing, denser housing, and more family sized units (3 bedrooms). This also means lowering immigration, reducing LIMA / TFW / PR / international student intake, taxing non primary residences excessively, and banning short-term rentals (Airbnb).
GameDoesntStop on
Yeah, because rates have nothing to do with actual affordability… rate go down, interest costs go down, and home prices go up. Vice-versa when rates go the other way.
What actually affects affordability is demand (net new people) vs. supply (net new homes built). We’re importing new people at an enormous rate… far higher than we can possibly build homes for, so affordability continues to deteriorate.
midnightmoose on
The benchmark home price in the GTA is 1,360,400$. No matter how much you are able to borrow that will remain dramatically expensive until average incomes raise accordingly. No government has ever singled that it’s willing go do anything to lower housing values, so the best case scenario is that housing values remain relatively static until per capita income hopefully raised to a level where the average person can afford a home.
7 Comments
TLDR: Despite expected rate cuts by the Bank of Canada, housing remains unaffordable for many Canadians due to high home prices, weak spending power, and rising demand from immigration. Mortgage rates are easing, but not enough to offset these challenges. Experts predict it could take a decade for affordability to return. Even in major markets like Toronto and Vancouver, prices remain too high for many buyers. Recent government measures to extend mortgage amortizations aim to help, but critics fear they may actually increase demand and drive prices up further.
When, instead, of trying to combat house prices you instead let us take out larger, longer, loans with smaller down-payments….what do you expect?
Stop watching prices, start watching the supply chain. What’s in the pipeline in terms of new housing? How is it evolving?
have to be smooth brained to invest all your money in Canada, SP500 will outperform Canadian RE by 10x between 2025-2030. Its literally in the numbers, Chinese money is gone.
Lowering rates doesn’t increase affordability because the actual house prices increase.
What increases affordability is more housing and less housing competition. That means building more housing, denser housing, and more family sized units (3 bedrooms). This also means lowering immigration, reducing LIMA / TFW / PR / international student intake, taxing non primary residences excessively, and banning short-term rentals (Airbnb).
Yeah, because rates have nothing to do with actual affordability… rate go down, interest costs go down, and home prices go up. Vice-versa when rates go the other way.
What actually affects affordability is demand (net new people) vs. supply (net new homes built). We’re importing new people at an enormous rate… far higher than we can possibly build homes for, so affordability continues to deteriorate.
The benchmark home price in the GTA is 1,360,400$. No matter how much you are able to borrow that will remain dramatically expensive until average incomes raise accordingly. No government has ever singled that it’s willing go do anything to lower housing values, so the best case scenario is that housing values remain relatively static until per capita income hopefully raised to a level where the average person can afford a home.