Money: 6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis - PressFrom - Canada
  •   
  •   
  •   

Money6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis

17:35  05 may  2019
17:35  05 may  2019 Source:   huffingtonpost.ca

B.C. says its money-laundering reforms could push dirty money to Toronto

B.C. says its money-laundering reforms could push dirty money to Toronto British Columbia’s finance minister says that province’s transparent land registry will push dirty money to real estate markets in other parts of Canada — and Toronto’s at risk. “If you’re a money launderer, provincial lines don’t matter,” Carole James told the Star in an interview Thursday. “Money launders don’t look at borders, they look for opportunities.” “If one province puts something in place and the other provinces don’t it provides

You might think you know Canada , but do you really? ► Follow on Instagram: http ☝️ - this has affiliate links, meaning when you buy something, your price is the same but I get a small % for sending you there. This is an easy way for you to support The New Travel!

The debate surrounding the housing crisis tends to focus on how to free up public and private land for new buildings. But what if developers could build on Room for Tea arranges home-shares of up to six months for interns and students in London. Some hosts need help and some don' t – the difference

6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. New construction of high-rise building in downtown

Ontario Premier Doug Ford became the latest Canadian leader last week to announce a plan to help alleviate the growing affordable housing crisis.

The plan reads like a checklist of requests from the province's real estate development industry, focusing on such issues as cutting red tape for builders and making it easier for developers to push through unpopular projects. Critics argue it especially helps out big developers.

And it basically amounts to the same thing as most other housing-affordability plans introduced in Canada recently: Not much. Essentially, nibbling at the edges of a large problem.

Toronto Must Treat Housing As A Human Right To End Rental Crisis: UN

Toronto Must Treat Housing As A Human Right To End Rental Crisis: UN TORONTO — A United Nations representative visiting Toronto said she's shocked about the state of affordable housing and implored city councillors to urgently tackle the crisis embracing a human rights approach. "I'm only saying what's visible to all of you as you walk or ride your way to work," Leilani Farha, UN special rapporteur on adequate housing, told the city's affordable housing committee Tuesday. "The homelesness on the streets, it's unacceptable in a rich country, and in a city like Toronto. Skyscrapers are going up that are clearly not intended for people who are in housing need, and clearly, are intended for investors.

What can be done to stop this speculative feeding frenzy? But it’s fair to say that, beyond these usual suspects, one of the fundamental causes for the current lack of affordable housing , and simultaneous glut of luxury developments, is the iniquity of the land trading industry.

“It won ’ t solve the housing crisis on its own, but it’s one measure in a suite of measures.” Partly that’s to do with the “flooding the market” thing , mentioned above, but it’s also because they can hold on to the land itself and sell it when it becomes more valuable, a process called “land-banking”.

Our housing affordability crisis isn't just the result of some fleeting, easy-to-identify problems like foreign buyers flooding the market with cash or lenders handing out too much money — although that is part of it for sure.

They are also the result of long-term trends that have shifted the way housing is delivered in this country. Here are a few of the things we could do to change those trends — and the reasons why we probably won't.

'De-zone' the suburbs

This is an idea that both urban planners and Canada's developers are getting behind. Unlike other parts of a city, suburbs are inflexible. Strict zoning means that, while urban areas can transform to serve new purposes as cities change, suburbs stay the same.

Today, even in the country's most booming cities, suburban neighbourhoods are depopulating as the baby boomers who occupy those homes slowly age. Meanwhile, the next generation of homebuyers are being squeezed into tiny condos next to freeways or rail yards.

Canada's housing markets not as vulnerable as prices fall more than 5%, CMHC report

Canada's housing markets not as vulnerable as prices fall more than 5%, CMHC report For the first time in 2.5 years, Canada Mortgage and Housing Corporation has rated the housing market as only moderately vulnerable, indicating the hot conditions characterized by bidding wars and sky-high prices may be cooling off a little. In its quarterly Housing Market Assessment, CMHC found that inflation-adjusted average price fell by 5.4 per cent in the fourth quarter of 2018 compared to the same period in 2017. In its latest report, the Canadian Real Estate Association said the average price of a home sold in Canada during March was $481,745.

Fixing the housing crisis in Auckland is simple, according to Leonie Freeman. She knows how to do it. A plan “ to solve Auckland’s housing crisis ”. Four steps, each with a set of identified and She points to similar projects in Canada , Chicago and other parts of the US. The way to make Collective

The housing crisis is crazy. It’s unfolding in many cities around the world, not just the big ones like And here’s the thing — a third of Canadians don’ t own property, so their children don’ t stand to The high rents and housing prices are driving young families out of Vancouver and other cities, causing

The solution, proponents say, is to de-zone the suburbs and allow at least some "gentle densification" in single-family home areas, that would allow the construction of townhomes and low-rise apartment buildings.

But go ahead, tell homeowners in idyllic suburban neighbourhoods that the deal they thought they were getting is no more, and their neighbourhoods are about to be rebuilt as urban enclaves.

And ending suburban zoning will only be more difficult as house prices rise. Someone who paid $1 million for a suburban bungalow will likely fight much harder to keep their "quality of life" intact, compared to someone who paid a lower, more affordable price for their home. The political pitfalls here are obvious.

Allow more suburban sprawl

If you can't urbanize the suburbs, well, you can always build more of them. Proponents of the New Urbanism will tell you suburbs are a bad idea: They're an inefficient and wasteful burden on municipal services; they kill any hopes of mass public transit; they can be isolating to people living alone; and they preclude the creation of the sort of mixed-use neighbourhoods that make for sustainable, flexible cities.

Risks Are Receding in Canada’s Housing Market, Agency Says

Risks Are Receding in Canada’s Housing Market, Agency Says Recent rule changes by Canadian policy makers, including tightened mortgage lending, appear to be bringing the country’s real estate market more into balance. The federal housing agency lowered its assessment of the overall vulnerabilities in the national market to “moderate,” from “high,” according to a report Thursday from Ottawa. Canada Mortgage and Housing Corp. cited evidence of easing price acceleration for the country as a whole, with prices in Toronto and Vancouver moving closer to levels supported by fundamentals.

The problem of inflated prices lies not in shortage of supply but in property speculation. That’s what we need to clamp down on, says Ann Pettifor, director of Policy Research in Macroeconomics.

Too many of the new houses being built in Britain are unaffordable or badly constructed. But viable alternatives exist, writes the Guardian columnist John Harris.

But the research is clear: cities that allow unlimited sprawl have cheaper housing than cities with hard limits (either geographic or political) on where homes can be built. And research also shows cities with limits on sprawl are more prone to housing bubbles, because a hard limit on developable land attracts speculators.

6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. An aerial view of suburban subdivisions in Greater Toronto.

  • But sprawl is passé these days. Ontario has a Green Belt around Greater Toronto, in an effort to stop the paving-over of Canada's most fertile farmland; Vancouver is physically limited by mountains and ocean; and other cities have put in anti-sprawl measures to one degree or another.

    There is not much political appetite for changing this trend. Just look at how quickly Doug Ford had to backtrack on a proposal to allow some limited development in the Green Belt. Sprawl is unlikely to make a comeback.

    Reduce immigration levels

    A growing number of analysts have been noting lately that Canada's recently-increased immigration targets are putting more pressure on the housing market.

    Canada May Be Expensive For Middle Earners, But For The World’s Rich, It’s A Bargain

    Canada May Be Expensive For Middle Earners, But For The World’s Rich, It’s A Bargain MONTREAL — Canada has become one of the world's hottest destinations for wealthy migrants, and one clear reason for it is low housing costs. Yes, low housing costs. While Canada's largest housing markets are, overall, some of the least affordable in the world, that's not the case for the world's wealthy, who enjoy house prices here well below what they would pay in many other destinations, research shows. Canada saw the world's third-largest influx of rich migrants in 2018, according to a report from market research group New World Wealth. Only the United States and Australia saw a larger gain. © Provided by Oath Inc.

    But can these solve the affordability crisis , and are they actually cheaper? We can continue with the strategies we now employ, housing vouchers on the demand side, government programs and inclusionary zoning Another thing I would love to see is a campus wide day of cleaning up Berkeley.

    We need more social housing , denser cities and new suburbs – and those require real political will. Let’s imagine we had a government that was genuinely determined to solve the housing crisis . Housebuilder has admitted it let buyers down on quality and service but six months on, some are still

    All things being equal, immigration shouldn't raise house prices so long as the supply of new homes matches the increased demand. But this doesn't seem to be happening right now. With the recent slowdown in home sales, developers are cutting back on future plans even as population growth is accelerating. Low-income households will likely feel it most, and policymakers know it.

    "Toronto will experience accelerated population growth over the next 20 years and vulnerable groups and low- and moderate-income households will experience increased difficulty accessing suitable and affordable housing," a city report predicted last year.

    6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. Travellers at Toronto's Lester B. Pearson International Airport.

  • So, if we wanted to, we could cut immigration levels to reduce population growth and allow the housing supply to catch up.

    But Canada is experiencing a historically huge labour shortage, and the only short-term solution is to import labour. Not doing so could threaten our economy. Just look at Quebec, whose new CAQ government ran on a promise to cut immigration levels. They did so, and less than a year later, they're planning to raise immigration levels back again. The province's labour shortage is just too much.

    Build large-scale community housing

    Part of what made home ownership affordable in Canada in the post-war boom years was the construction of large-scale community housing projects, financed by taxpayers. It meant that a significant chunk of residents, those at the lower end of the income ladder, simply weren't in the "free market" for housing, reducing demand and helping to keep prices in check.

    Vancouver housing market not even among top 5 in Canada anymore

    Vancouver housing market not even among top 5 in Canada anymore Vancouver housing market not even among top 5 in Canada anymore

    Things To Do . But high housing costs are “crowding out” personal consumption, with more cash going to landlords and lenders instead. “We have just been fundamentally under-producing housing in California,” said Mark Stivers, a state affordable housing official who served 16 years as a

    Affordable housing is dangerously close to going extinct. The major cause of the crisis is that the collapse of job creation outside of major cities has sent demand for housing there sky high. But that's just stabilizing, as opposed to bringing those prices down, which is what really needs to happen.

    We stopped building those large-scale projects back in the 1970s, and there is now a five- to seven-year wait list for subsidized housing in Toronto.

    6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. Apartment buildings in Toronto's St. James Town. The city's supply of high-rise concrete rental buildings was built at a time when developers were given large tax breaks for rental projects.

  • So we could start building serious quantities of subsidized housing again. But have you seen the cost of land in urban Canadian areas these days? It would be far more expensive than those projects built half a century ago, and the political payoff for our municipal leaders is uncertain.

    Bring back incentives to build rental housing

    So if we can't build government housing on a mass scale, at least we could get more rental apartments built, right?

    Up until the 1980s, Canada heavily subsidized the construction of rental apartments, in the form of tax breaks and other incentives. This is why most Canadian cities are covered in those modernist, concrete or brick apartment buildings from the 1960s and 1970s. Many experts say this supply of rental housing is one reason why housing remained affordable in Canada during a time when its population was booming.

    6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. Apartments overlooking English Bay in Vancouver's West End.

  • But since the 1990s, Canada hasn't subsidized rental housing construction very much, and pretty much the only multi-unit dwellings developers have built since then have been condos. They have much fatter profit margins, and the cost of building them can be recovered much faster.

    B.C. to hold public inquiry into money laundering

    B.C. to hold public inquiry into money laundering The British Columbia government has launched a public inquiry into money laundering, a crime the premier says has distorted the provincial economy, infiltrated casinos, fuelled the overdose crisis and increased the price of real estate. 

    That can be taken as a victory for groups like Radical Housing Network, who organised the picket. Asking a load of property investors to solve the housing crisis is kind of like asking a barman to But those investors want to build posh flats, not affordable or social housing . This was thrown into sharp

    Tomorrow's Buildings. Six things for office of the future. In 2001, Brazilian designer Alexandre Lafer Frankel grew so exasperated with the traffic in Sao Paulo that he abandoned his car and started to think about how to solve the mobility crisis in his city.

    Consider this: About 35 per cent of Toronto's population rents, but only six per cent of the housing supply added between 2011 and 2016 was rentals.

    But incentives to build rentals ones that actually would work would be very expensive. They would need to cover the large and growing gap between the amount of money a developer would make from selling individual condo units, versus selling a whole building to a landlord who would need 20 to 30 years to recover the cost. Are we willing to throw billions at rental incentives? Seems unlikely.

    Actually limit the amount of money being lent to buyers

    There are many different reasons why house prices may rise or fall, but there is one hard limit to how high prices can go, and that's determined by the amount of money mortgage lenders are willing to put into a market.

    Over the past decade, Canada has taken a number of steps to cool off excessive lending, including reducing the maximum amortization on an insured loan to 25 years, and the more recent mortgage stress test.

    But we could take a more direct step, and simply limit the amount of money banks can lend, for instance by setting a strict loan-to-income ratio. This would link mortgage size directly to peoples' incomes, instead of interest rates.

    6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis© Provided by Oath Inc. The office towers of Bank of Montreal, Scotiabank, CIBC and Royal Bank in Toronto's financial district.

  • The industry would no doubt complain that this is yet another measure that makes it harder to get on the property ladder, and the banks would likely scream bloody murder.

    Canada's banks have become addicted to mortgage lending, with home loans going from less than 10 per cent of banks' lending books in the 1970s, to more than 40 per cent today. Mortgages are safe, long-term sources of revenue, so why bother with anything else? Just keep getting homebuyers further into debt and all will be OK.

    Canada's Mortgage Rates Are Coming Down, With Record Lows For 10-Year Loans

    Canada's Mortgage Rates Are Coming Down, With Record Lows For 10-Year Loans There’s a little bit of good news out there for Canada’s increasingly stressed-out homebuyers: The pressure from rising mortgage rates is ramping down, at least a little. In the latest sign, HSBC has cut its rate on a fixed, 10-year mortgage to 3.24 per cent, while two smaller lenders — Intellimortgage and Butler Mortgage — are offering 3.22 per cent. According to comparison site RateSpy, these are the lowest rates for that type of mortgage on record.

    But could spiralling costs of housing be suppressing household formation? But if there is sufficient housing stock nationally, then rising housing pressures and prices in London Sure, throwing some jetsam overboard might slow things down, but it won ’ t solve the problem of the iceberg and the sea.

    Limiting home lending will only happen if we get political leadership that feels like fighting Canada's entire housing-addicted financial system.

    Whatever we choose to do, we will find ourselves at odds with some aspect of today's Canada. Our desire to build sustainable cities; our economic reliance on high levels of immigration; the commodification of our housing supply all of these are aspects of our housing affordability problem.

    Fixing it will mean asking ourselves a tough question: What cost are we willing to pay for lower house prices?

    Got any suggestions for what Canada could do? Let us know in the comments below.

    Earlier on HuffPost Canada:

  • It's Harder Than Ever To Go From Renting To Owning A Condo In Canada
  • Canadians Have Little Faith Government Can Solve Housing Affordability Problem
  • What You Need To Earn To Afford A Single-Family Home Across Canada
  • This article originally appeared on HuffPost Canada.

    Canada's Mortgage Rates Are Coming Down, With Record Lows For 10-Year Loans.
    There’s a little bit of good news out there for Canada’s increasingly stressed-out homebuyers: The pressure from rising mortgage rates is ramping down, at least a little. In the latest sign, HSBC has cut its rate on a fixed, 10-year mortgage to 3.24 per cent, while two smaller lenders — Intellimortgage and Butler Mortgage — are offering 3.22 per cent. According to comparison site RateSpy, these are the lowest rates for that type of mortgage on record.

    —   Share news in the SOC. Networks

    Topical videos:

    usr: 5
    This is interesting!