In an economy as utterly dependent on housing as Canada’s this is the kind of news that grabs headlines. Even if the recent interest rate hikes are over and rate cuts continue, servicing the debt burden piled up during the lengthy near-zero era makes a quick recovery impossible.
The number of housing starts in the first half of 2024 has lagged behind the previous year, while June saw a 44-per cent drop year-on-year. At the same time, new home sales — which can predict future home construction — are also falling.
Data from the Canadian Mortgage and Housing Corporation (CMHC) shows that, between January and June, 36,371 new homes were started in areas of Ontario with more than 10,000 residents. Those figures were a 14-per cent decrease from the previous year.
Last month, the CMHC reported particularly dire figures. In June 2023, 10,114 new homes were started in Ontario, while this year that plummeted to 5,681.
“In an economy as utterly dependent on housing as Canada’s…”
What about the other part of the economy where bureaucrats and administrators shuffle papers back and forth amongst themselves……………….
This article is typical Global News. It blames the crises on Ford but doesn’t really explain why he’s to blame and makes no mention ( I skimmed the article) of the real reason behind the collapse in the housing market, Global’s angel investor Trudeau. Not does it mention his promises and efforts. No mention that I saw of Toronto’s Mayor. I think most of Global’s viewers are women. No wonder they vote for Trudeau.
Of course it’s total BS. Global doesn’t bother to mention that the principal killer of housing in Canada is the poisonously high interest rates brought on by Justatwit’s excessive spending.
We should not be surprised at this. Global is a large part of the reason why its owner Corus Entertainment is collapsing. No doubt they are hoping that by hiding things inconvenient to Justatwit they will get a federal bailout.
Thriving.
Tuesday to Thursday.
9:30-2:40.
Hour morning break, hour lunch, hour afternoon.
Fed, state, personal paid days off.
In an unrelated story … US Total Debt. just passed the $35 Trillion mark for the first time ever today.
https://www.usdebtclock.org/
But don’t worry, because Janet Yellen just declared that the US needs to spend $3 Trillion MORE to save the world from Global Warming or something her Globalist Masters told her to say.
$3 trillion more, per year…
This year, compounded annually at twice the rate of inflation, perhaps?
And simultaneously… the economy will collapse as NOTHING is created for that expenditure. Empty, pointless, spending on NOTHING. But I guess that’s the “New Economy” … where businesses (and especially the government) don’t need to make … ewwwww … profits … or create anything REAL.
And a round of applause for the Twat Twins – turdo and blubber douggie – for the wuhan flu shit-shower!
And just about every other politician in this Country can take a bow too.
What did you expect when interest rates went from 2% to 5% on the open market, and are sitting around 12% on the private equity market (where most builders go), and a lot of condo projects are failing their opening weekend expectations?
Oh, and that also doesn’t account for “development fees” that the governments insist on gouging the builders on in order to pay for things that have nothing to do with the new “buildings”.
Toronto even tried to “laneway houses” and got a total of 60 applicants, and approved 3.
“The number of housing starts in the first half of 2024 has lagged behind the previous year, while June saw a 44-per cent drop year-on-year.”
Not gonna get those 2 million new houses by – I forget – 2026? 2030?
2,000,000 houses/6,000 houses a month/12 months per year… lessee… carry the two… times the square root of purple… to the power of the number of bananas in a bunch… minus a random fudge factor…
…gives a back-of-cocktail-napkin figure of about 27 years to get to two million houses at current new build rates. Sparkle Socks and Short Stuff might wanna lower expectations.
So the couple million “new canadians” are going to be staying in mid market hotels for the next decade?
Couple million per year…..
Liberal premier Doug Fraud couldn’t be much worse even if he were a member of that Party. Rob Ford may have smoked crack, but at least he had a clue.
Premiers have a lot of power, this one fiddles and tinkers with lame legislation while doing less than nothing to address the real problems that come from Ottawa. He’s too afraid of upsetting Justin and the authoritarians in the Liberal Party.
The Premier of Ontario is in a powerful position to take care of the people of Ontario which would benefit everyone in canada, but this clown refuses to do so, he is so pointless it’s maddening.
I know… I can’t stand Ford either, but what’s the alternative? Doug Ford is Reason #26 why I left Ontario. The province is hopelessly lost!
btw… Can you guess what reason #1 is?
Oh, there’s alternatives. Honest people with courage and principles. But Canadians, like sheep, prefer to keep getting fleeced and slaughtered.
this is why l peg the rule of voting in Canaduh, pick the one going to do the least damage.
for me for a lonngggggg time its been a process of kicking one one regardless of who displaces them.
I know the gov. promised new housing for all the new Canadians, but I don’t know how many barista’s and Amazon drivers can afford $750,000 for a new house.
Canada has very few desirable places run a business that isn’t mom and pop.. Dropping 50 million people on that while you shut down all resource development is a mystery to me..
BHP has a fully automated copper mine in Chile. People have become obsolete.
I suspect fast food will soon be totally mechanized. The only way to order will be online and a machine will poop out your order. Maybe a couple humans will watch to see that things aren’t screwing up. The machines will all be built in China just like everything else.
All 3 core layers of Government bear the burden of blame for this, as well as the consumer…
The federal government imports an unsustainable level of people per year, who far to many of whom, to be crass; are not contributing enough to the economy. We were told “Doctors and Lawyers and Engineers, that’s all!”. But is that so? Let’s ask John TIbbits of Conestoga College. And this point is before we begin to even question if the Bank of Canada is in fact as impartial as it’s stated to be….or the unhinged environmental protectionism of this administration.
Which brings us to the provincial level, where, clearly, none of us have seen Doug Ford publicly pressure the BoC (even Global has managed to not overlook this), so, we can all take great solace in the BoC not being influenced by any outside source, whatsoever. And while I grudgingly admit, the develop able land in the Green Belt (that famous bogeyman of High Housing Cost Critics) is actually much larger, and much more develop able than I was happy to learn, but what have they done to limit the ability of municipalities to create unnecessary impositions on builders/developers? Anything? Rent control, the debacle that is the Tenant Board…Real Estate Investment is a poor choice for those with an IQ above room temperature numbers…
Municipalities quite likely bear the lions share of the blame, as they’ve ratcheted development costs: while I don’t disagree that certain developmental costs should be passed through to the developer, and ultimately land with the consumer; Government has ‘surprisingly’, with their evaluative processes, historical designations, and development cost (taxes) persecution of those with capital hoping to invest and grow it, contributed to the explosion in development costs. Municipal Governments, and the morons at their helm, have added 6-figures to the cost of building a home, before the granola-NIMBYers have even had a chance to organize a community bitch-fest against “progress” they don’t deem progress, while simultaneously demanding the rest of us give in to their demands of social “progress”, as their own asset values explode (Who’d-a-thunk it?).
Then you have the Realtors; an industry so clouded by legitimate conflict-of-interest, it doesn’t actually understand what conflict of interest means anymore, in no way, profiting from the addition to the sale price of a home, and of course, there’ll be no incentive for Mortgage Brokers to write larger mortgages, so they’re all clearly invested in seeing the price of shelter stabilize, and the buyer receive the “fairest” price…
And the lastly; the (idiot) consumer is to blame. Your primary residence, in no rational world (sorry, Behavioral Economists) is an “investment”. It a necessary, incurred cost, that perhaps, appreciates at a value beyond inflation, which you need to Sell, to completely unlock the equity you’ve built, should you need it. Also, given the negative Cap-Rates in the Toronto condo market lately, it is evident that most individuals who consider themselves “real estate investors”, don’t actually know how investing works (you earn a return on the money you’ve “invested”, so it grows).
Misalocation of resources into real estate has now caused us to pass the inflection point of the US Market in 2008 (By percentage of GDP), and cannot be corrected by government involvement. We need less Government, and it’s associated legislation, taxation, and gate keeping; we need far fewer people entering the country each year, we need market driven, and market backed trade associations, and culturally, we need to be less dumb when it comes to our approach to shelter costs….
Succinctly: if you’re young, don’t be mad, but invest until the market inevitably crashes, or is propped up long enough you see it for the sham it is, and become truly wealthy, having acessible money/revenue streams…
The Spawn’s regime has driven away investment dollars as other levels of government have done everything they can think of to make housing more expensive. Now with the Capital gains increase combined with rent controls and anti-landlord legislation in some cities with the worst costs, the builders are shrugging.
Gonna be a LOT of tent cities springing up. Time to get yourself a BRICS passport.
Or a good stout tent.