Earlier quoted context omitted.
There aren't enough homes _where people want to live_ and you solve that buy building more homes _where people want to live_. But that's difficult because cities have all these veto points. It takes forever to get new construction going, right? Exactly. That's why we aren't building enough, because in the current regulatory environment we can't. That's what people talk about when they talk about NIMBYism as the cause…
Given that "want to live" is a factor that is fluid and changes more quickly than building homes (which is how we ended up in this situation in the first place), it's probably also good to invest in making existing places that people are currently fleeing more desirable. The jobs left quickly enough that our physical infrastructure couldn't keep up. That implies that jobs are more fluid than building and that therefo…
Canada bans foreign home buyers for two years
771–780 of 1001 posts
Re: Canada bans foreign home buyers for two years
#772Earlier quoted context omitted.
This may be a healthy long term outcome but a lot of people have a good portion of their value parked in their home - if there is a sudden oversupply how will you cousin the economic and social shock as millions of middle-class folks suddenly lose their wealth while upper class folks mainly invested in the stock market come out the far side with even more wealth? This is not an easy problem - and as soon as you try a…
People dont lose anything until they sell. Most people aren’t selling. So they haven’t lost. And how would you limit the effect if housing dropped for the many other reasons prices drop?? You don’t.
This is the big problem the government has: it is very difficult to unwind this mess through policy without triggering a cascade. Likely it will come eventually, they just want to ensure it’s not their party in office when the shoe finally drops.
Re: Canada bans foreign home buyers for two years
#773Earlier quoted context omitted.
It'll be interesting in a couple years when prices are still crazy and someone has to come up with an excuse for why. It's amazing to me how resistant people are to the idea that housing is expensive because there aren't enough homes for people to live in. It's always a search for exotic explanations like foreign buyers and mysterious empty apartments.
I think the problem is that people want to buy 3 bedroom homes with a 3 stall garage on 2 acres of land. In my market, there are tons of affordable homes, but they aren't brand new, huge, with a ton of land. People are going to have to pay for that. It's a matter of keeping up with the Joneses from my perspective. People just don't want an average size home built in the 60s. They need a brand new 3k SQ ft home and bi…
At least in my area, developers spend over half of the expense of the home on land (including the legal/political costs of getting it up zoned) and “horizontal development” (utilities, impact fees, permit costs, roads, environmental mitigation, drainage, etc.)
If just breaking ground costs you $400k per lot, then it doesn’t make a ton of sense to build 1500 square foot starter homes that will sell for $600k instead of 3500 square foot McMansions that will go for $1.2mn
Re: Canada bans foreign home buyers for two years
#774Earlier quoted context omitted.
The root cause of the supply constraint that ultimately gives real estate it's value is the land, and more specifically, the land being in a particular location . For example, a row of condos built right next to a major employer of the town, in the center of the city. That land is going to be valuable so long as that town exists, and as the population continues to grow, will only become more valuable. Adding more hou…
You can always build more dense housing on land that is in high demand. In fact, doing that is the most obvious and effective way to keep prices low for desirable locales. Backed up by pretty much all the economic research on the subject in the last decade.
In which dense cities in Canada (or the USA) did this work, resulting in a desirable dense city with cheap housing?
Re: Canada bans foreign home buyers for two years
#775Earlier quoted context omitted.
Eliminating a subset of buyers, i.e. slightly decreasing demand, is an easy and obvious action to take. Will it have a significant and long lasting effect? Very likely not. But when examining the supply-demand equation, it's painfully obvious to say "foreigners who don't live here should not be allowed to buy residential housing". It's way, way easier than incentivizing developers to build affordable housing and deal…
> build affordable housing Lets build shitty buildings that will last for decades. Affordable housing is and will always be a horrible idea. Build and build until you get a surplus and suddenly tons of housing is affordable.
The quality of the building is determined by building codes
Re: Canada bans foreign home buyers for two years
#776Earlier quoted context omitted.
> Like all cities in areas with heavy-handed zoning regulations, abuse of historic preservation clauses, and filibuster-style city council meetings blocking new construction...the issue is one of supply. > It's the same problem in literally every developed country on earth right now. The problem with making generalisations is that you're often wrong. The French real estate market has problems, with prices rising in s…
I’m not sure that you’ve made the case that they are wrong strongly enough. Does France have heavy handed zoning and historic preservation policies? Sure. But you aren’t getting 5-6 story multi family buildings constructed at a face pace in major metro areas. In many places, such construction in prohibited entirely by also how family zoning. And while France may protect historic monuments like an old church. “Histori…
Of course you are. Tons! They sell like hot bread ( as in within weeks of starting sales all appartements are sold, with 1.5-3 years of waiting for the construction to finish), and cost an arm and a leg in the really fancy parts of the metro area ( the Western suburbs).
Re: Canada bans foreign home buyers for two years
#777Earlier quoted context omitted.
I think you are leaping to a lot of conclusions not in evidence. There is a big difference between "centrally planning a city down to the micro-management level" and overriding any ability for a municipality to assert what it feels is needed in a development. Negative externalities are a very real thing and allowing developers to have arbitrarily many of them at arbitrarily bad levels is not the only alternative to c…
>I think you are leaping to a lot of conclusions not in evidence. There is a big difference between "centrally planning a city down to the micro-management level" and overriding any ability for a municipality to assert what it feels is needed in a development. Not really, if the municipality is in fact willing to centrally plan a city down to the micro-management level, and a different level of government wants to pr…
I never said some overriding isn't going to have to happen. I never said the municipality should be able to plan down to the micromanagement level. All I said was that a blanket allowance for all buildings of a certain size on any street with a bus route regardless of the route reaching the building or not was absurd.
I criticized a specific recommendation of a panel that suggested we completely override municipal planning and not allow them to address any concerns with any buildings on a street with a bus route as long as those buildings were 6 to 11 stories tall. I pointed out how it allowed for certain absurdities and was not a sound policy recommendation.
>Indeed. Example: artificially embalming swathes of single-family neighbourhoods in time, right next to recently built public transit we're sinking billions into building. So let's not be selective about negative externalities and consider the ones created or exacerbated by NIMBY-driven urban planning, too.
What you call artificial embalming others might call a status quo. It has its own negative externalities, I agree. I want more development than many people I know and don't think the status quo is sacrosanct. I also don't think the status quo is a state like any other that doesn't deserve any special consideration. I think it represents a way of life that people bought into and became part of a community with. Parts of that are bad: low density forever doesn't work. But there is a certain standard of services provided in the neighbourhood and developments need to be cognizant of that and be coordinated in ways that don't have huge adverse effects on that.
I want smart development that considers the surrounding neighbourhood in reasonable ways. I don't want 50 story condo buildings in crowded school zones without a plan to build new schools. I don't want 50 story condo buildings that aren't on highways or good public transit when traffic studies show nearby intersections are at or near peak capacity. I also don't like it when developers consistently claim buildings in my neighbourhood will end up with 76% of occupants using public transit when after the fact surveys show that number is 39%. Instead of 24% of occupants driving we end up with 61% doing so, an impact of 254% of what was predicted on traffic patterns. I also dislike that we consider each development in isolation and don't do any holistic studies on the impacts, the net result of which is four different developments within two blocks of my house each show that facilities won't be overcrowded and traffic will be "within acceptable limits" if only their development proceeds. Then the province overrides the city and approves all four at once and we get severe overcrowding and overburdened facilities.
There is also the double whammy that property taxes are based on a percentage of property value (which is lower for condos) and the percentage used is also lower for condos. The net result of this is that the municipality gets far less budget per capita and this leads to a decline in services. I'm not sure what a good solution is since we need more density but I have a lot of sympathy for people who don't think it's fair that the services of their neighbourhood are forced into a significant decline.
Re: Canada bans foreign home buyers for two years
#778Earlier quoted context omitted.
I live in Toronto as well. We make a good income, have large savings for a down payment, and recently thought about buying a house. It's depressing. So, I decided to look at the City Plan -- to see what the actual plan is for addressing the housing cost crisis in Toronto. Not surprisingly, the real problem became very clear to me, almost immediately. The problem is not blind bidding. The problem is not foreign buyers…
> If, for example, an existing zoning by-law permits only single detached houses in a particular geographic neighbourhood and the prevailing building type in that neighbourhood is single detached dwellings, then the Totally agree with you. I just returned home from a visit to Cape Canaveral, Florida. It has a true mixed residential pattern. Lots of singles, duplexes, and small apartment blocks mixed. Felt "natural",…
Re: Canada bans foreign home buyers for two years
#779Earlier quoted context omitted.
>[homogenous Japanese population] is the farthest possible away you can get from [unrestricted immigration from the southern hemisphere]. Why yes, indeed, it is!
Ah, racism. Long time no see.
Re: Canada bans foreign home buyers for two years
#780Earlier quoted context omitted.
This may be a healthy long term outcome but a lot of people have a good portion of their value parked in their home - if there is a sudden oversupply how will you cousin the economic and social shock as millions of middle-class folks suddenly lose their wealth while upper class folks mainly invested in the stock market come out the far side with even more wealth? This is not an easy problem - and as soon as you try a…
thats a view of an owner who wants to get as rich as his property will allow him, and hopefully even more. fuck everybody else. exactly how we get into this situation. folks who gamble with money have to accept the risk part of the equation, whatever vessel that may be. if somebody invested in tech stocks few months ago they are now probably crying in the corner.
And also don't forget that whenever "everybody loses some money" the people at the top are in a great position to grab an even bigger slice of the pie.
Whether or not you feel for the pain these people would go through, you're going to feel pain when it ripples out the rest of the economy.