The Prime Minister announced a new government agency to oversee billions in financial incentives for developers, a plan he spoke about during his election-campaign appearance on Village Media’s podcast
I assume Carney can do basic math. If you watch the interview in the post, he notes that we’re only going to have a small number initially as we start scaling up new processes, companies and the like.
Carney can do basic math, but the reality is that he is lying to people. He doesn’t actually want house prices to go down. Voters would actually be quite unhappy with a 20% drop in prices that occurs too quickly and doesn’t have an external event to blame. The Conservatives would eat his breakfast in the next election if he dropped the value of homes by 10% before then. That’s the retirement savings for a lot of voters, they have far more money in their homes than they do in stocks and retirement portfolios.
Which is why every government is just picking some key items to say “look at what we’re doing, but it’s going to take time” knowing that they will get voted out before that lie starts to become apparent. The liberals launched a “National Housing Strategy in 2015”… it’s 10 years later and things are just significantly worse. Harper wasn’t any better before that, here’s their strategy from the 2006 election. https://www.poltext.org/sites/poltext.org/files/plateformesV2/Canada/CAN_PL_2006_PC_en.pdf where they acknowledged the problem, and agreed to do… almost nothing. The only reason that Harper didn’t have a massive explosion of the housing prices during his term was because the global financial crash nuked the real estate market right in the middle of his time in office, and they still managed to go up 15% in total.
Coupled with population decline
This one is a bit of a strange egg since it will happen completely unevenly when it occurs. Go look at housing prices in Japan over the last 10 years. Most rural houses are effectively worthless and practically ghost towns, while places like Tokyo are still up in prices despite completely flat population growth. Not particularly helpful for most people.
Housing productivity hasn’t improved at all over the last 50 years, in fact it’s gone down
Yeah, that’s why it takes something bold like putting together a new agency tasked with fostering innovative new companies. Those are the folks currently contracted to build the 4,000 affordable homes in the first wave.
Voters would actually be quite unhappy with a 20% drop in prices that occurs too quickly and doesn’t have an external event to blame.
Remember, the time scale is 2035, which should have two elections beforehand.
A chunk of voters would be happy, another would be unhappy.
The Conservatives would eat his breakfast in the next election if he dropped the value of homes by 10% before then.
That’s a fight almost any politician would love to have. “We’re here making things affordable for the middle class and our children and you’re complaining that they can finally buy homes?”
the liberals launched a “National Housing Strategy in 2015”… it’s 10 years later and things are just significantly worse.
I don’t find this argument particularly persuasive. Many governments have tried many things, that doesn’t mean nothing can work. This is a significantly larger. more concerted push at the problem than anything that came before. (And y’know, presumably won’t get interrupted by a pandemic.)
Most rural houses are effectively worthless and practically ghost towns
This happens everywhere, not unique to Japan or even demographic decline.
Excellent, so here’s what we’ll do. Ping me in 2035 and we’ll see if I’ve made a whole bunch more money or if my property has gone down in value.
I know I’m right here, which is hard for me, I don’t want to be correct. I would rather my children to be able to afford homes.
Unfortunately, people like you keep getting their hopes up on policies that have no historical record of working. Building more homes has never dropped prices anywhere in the world. Prices have always dropped because of other factors, and specifically those factors related to investment (like interest rates going up, the defaults from sub-prime mortgages, or the stagnation of the entire economy like in Japan)
Unfortunately, people like you keep getting their hopes up on policies that have no historical record of working.
Feel free to share an example of a country with a similarly ambitious housing plan in the last 20 years.
Canada certainly hasn’t had one.
I fins the notion of “well, we tried something about a third as comprehensive and it didn’t work” to be pretty silly. It’s like folks who go to the gym a few times over a month, don’t see results and decide they’ll never be in shape. Some things require a significant effort.
I’m not saying there’s a guarantee housing prices will drop but to declare they can’t because “a government said they’d try, they didn’t do much and nothing happened so nothing will ever happen” is nonsense.
that have no historical record of working. Building more homes has never dropped prices anywhere in the world.
Edit:
that have no historical record of working. Building more homes has never dropped prices anywhere in the world.
Like an ignorant goof, I forgot to mention, that it has worked, in Canada! In fact, parts of the current government’s approach (pre approved design, emphasis on modular fabrication etc) are taken straight of the playbook from the last time we did this, after the second world war. For you to believe the statement above means that you probably don’t know about this neat period of history, you can learn about it here!
Oh I know what happened post-war, but that type of development isn’t possible anymore.
There simply isn’t the available land, the only costs associated with that situation were for the buildings themselves which they made very small and cheap.
Today, there’s no land just sitting there for free.
Not to mention building condos cost a lot more per square foot than detached houses.
However, believe what you will. This push by Carney isn’t enough, it’s not even close. I wish it the best of luck, but I’m so certain it’s going to fail that I bought a house big enough for my children to continue living here as adults.
but that type of development isn’t possible anymore.
There simply isn’t the available land
You should read about that history again. Land costs weren’t the prohibitive factor, it was that there just wasn’t enough housing being built.
Not to mention building condos cost a lot more per square foot than detached houses.
This one is A) doubtful but B) more than a little misleading, condos are much smaller than detached homes, so the people per square foot works out cheaper.
But yeah, this won’t get everyone detached homes in the middle of a big city like Vancouver, like I already said. What it does do is allow us to do is build more multi unit places (hardly a factor in the post war efforts) as well as more detached homes in less populated areas (in BC, my goodness, we have some dirt cheap land a few hours away from Vancouver.)
I dunno, you’ve just made a lot of assertions about what will happen but none of it seemed particularly based on facts. I’m not going to say I’m confident in the government but I certainly like our odds more than I did a year ago.
It’s not doubtful that condos are more expensive per square foot than detached houses. Google it, those numbers are widely available.
Condos do not house more people per square foot at this point, In Canada right now, most people in condos have 0 or 1 child. Total fertility per woman is like 1.2 at the moment, and lower than that average for people living in Condos. 800 square feet divided by 2 is 400 square feet each. Even if they had 1 child, it’s still 266 square feet per person.
Those houses they built after the war were small, less than 1500 square feet, and houses after the World War had LOTS of children. That was literally how the baby boomer generation came into being. The total fertility per woman was something like 3.6-4 for the decade after the war ended. 1500 square feet divided by 6 is 250 square feet.
I did the math on a condo project in Vancouver (not even in downtown, just in the City across the bridge) the land cost for each unit they were building was $300,000. That number alone makes them unaffordable, before even talking about the construction costs. That doesn’t include any interest cost on holding the property while under development.
Land costs are currently a prohibitive factor in literally everything at this point.
Housing productivity hasn’t improved at all over the last 50 years, in fact it’s gone down. https://bfi.uchicago.edu/insight/research-summary/the-strange-and-awful-path-of-productivity-in-the-us-construction-sector/
Carney can do basic math, but the reality is that he is lying to people. He doesn’t actually want house prices to go down. Voters would actually be quite unhappy with a 20% drop in prices that occurs too quickly and doesn’t have an external event to blame. The Conservatives would eat his breakfast in the next election if he dropped the value of homes by 10% before then. That’s the retirement savings for a lot of voters, they have far more money in their homes than they do in stocks and retirement portfolios.
Which is why every government is just picking some key items to say “look at what we’re doing, but it’s going to take time” knowing that they will get voted out before that lie starts to become apparent. The liberals launched a “National Housing Strategy in 2015”… it’s 10 years later and things are just significantly worse. Harper wasn’t any better before that, here’s their strategy from the 2006 election. https://www.poltext.org/sites/poltext.org/files/plateformesV2/Canada/CAN_PL_2006_PC_en.pdf where they acknowledged the problem, and agreed to do… almost nothing. The only reason that Harper didn’t have a massive explosion of the housing prices during his term was because the global financial crash nuked the real estate market right in the middle of his time in office, and they still managed to go up 15% in total.
This one is a bit of a strange egg since it will happen completely unevenly when it occurs. Go look at housing prices in Japan over the last 10 years. Most rural houses are effectively worthless and practically ghost towns, while places like Tokyo are still up in prices despite completely flat population growth. Not particularly helpful for most people.
Yeah, that’s why it takes something bold like putting together a new agency tasked with fostering innovative new companies. Those are the folks currently contracted to build the 4,000 affordable homes in the first wave.
Remember, the time scale is 2035, which should have two elections beforehand.
A chunk of voters would be happy, another would be unhappy.
That’s a fight almost any politician would love to have. “We’re here making things affordable for the middle class and our children and you’re complaining that they can finally buy homes?”
I don’t find this argument particularly persuasive. Many governments have tried many things, that doesn’t mean nothing can work. This is a significantly larger. more concerted push at the problem than anything that came before. (And y’know, presumably won’t get interrupted by a pandemic.)
This happens everywhere, not unique to Japan or even demographic decline.
Do you own a home?
Nope. Why do you ask?
Excellent, so here’s what we’ll do. Ping me in 2035 and we’ll see if I’ve made a whole bunch more money or if my property has gone down in value.
I know I’m right here, which is hard for me, I don’t want to be correct. I would rather my children to be able to afford homes.
Unfortunately, people like you keep getting their hopes up on policies that have no historical record of working. Building more homes has never dropped prices anywhere in the world. Prices have always dropped because of other factors, and specifically those factors related to investment (like interest rates going up, the defaults from sub-prime mortgages, or the stagnation of the entire economy like in Japan)
Feel free to share an example of a country with a similarly ambitious housing plan in the last 20 years.
Canada certainly hasn’t had one.
I fins the notion of “well, we tried something about a third as comprehensive and it didn’t work” to be pretty silly. It’s like folks who go to the gym a few times over a month, don’t see results and decide they’ll never be in shape. Some things require a significant effort.
I’m not saying there’s a guarantee housing prices will drop but to declare they can’t because “a government said they’d try, they didn’t do much and nothing happened so nothing will ever happen” is nonsense.
Edit:
Like an ignorant goof, I forgot to mention, that it has worked, in Canada! In fact, parts of the current government’s approach (pre approved design, emphasis on modular fabrication etc) are taken straight of the playbook from the last time we did this, after the second world war. For you to believe the statement above means that you probably don’t know about this neat period of history, you can learn about it here!
Oh I know what happened post-war, but that type of development isn’t possible anymore.
There simply isn’t the available land, the only costs associated with that situation were for the buildings themselves which they made very small and cheap.
Today, there’s no land just sitting there for free. Not to mention building condos cost a lot more per square foot than detached houses.
However, believe what you will. This push by Carney isn’t enough, it’s not even close. I wish it the best of luck, but I’m so certain it’s going to fail that I bought a house big enough for my children to continue living here as adults.
You should read about that history again. Land costs weren’t the prohibitive factor, it was that there just wasn’t enough housing being built.
This one is A) doubtful but B) more than a little misleading, condos are much smaller than detached homes, so the people per square foot works out cheaper.
But yeah, this won’t get everyone detached homes in the middle of a big city like Vancouver, like I already said. What it does do is allow us to do is build more multi unit places (hardly a factor in the post war efforts) as well as more detached homes in less populated areas (in BC, my goodness, we have some dirt cheap land a few hours away from Vancouver.)
I dunno, you’ve just made a lot of assertions about what will happen but none of it seemed particularly based on facts. I’m not going to say I’m confident in the government but I certainly like our odds more than I did a year ago.
It’s not doubtful that condos are more expensive per square foot than detached houses. Google it, those numbers are widely available.
Condos do not house more people per square foot at this point, In Canada right now, most people in condos have 0 or 1 child. Total fertility per woman is like 1.2 at the moment, and lower than that average for people living in Condos. 800 square feet divided by 2 is 400 square feet each. Even if they had 1 child, it’s still 266 square feet per person.
Those houses they built after the war were small, less than 1500 square feet, and houses after the World War had LOTS of children. That was literally how the baby boomer generation came into being. The total fertility per woman was something like 3.6-4 for the decade after the war ended. 1500 square feet divided by 6 is 250 square feet.
I did the math on a condo project in Vancouver (not even in downtown, just in the City across the bridge) the land cost for each unit they were building was $300,000. That number alone makes them unaffordable, before even talking about the construction costs. That doesn’t include any interest cost on holding the property while under development.
Land costs are currently a prohibitive factor in literally everything at this point.