Thursday, 18 October 2007

Rent going up? Can't afford a home?

If you live in an area where over 100,000 people arrive each year, a million over a decade, then that may be part of the problem.

From the Toronto Star.

Housing price gains to moderate

Run up forecast to slow, but ReMax still expects 5% rise in Toronto area

Oct 18, 2007 04:30 AM
Tony Wong
Business Reporter


Despite concerns over the soaring loonie and its impact on the fragile manufacturing industry, prices for the average home in the Toronto area are forecast to increase by 5 per cent in 2008.

The average price of a home is expected to creep closer to $400,000 at $390,600 by the end of next year, according to a report released yesterday by ReMax Ontario-Atlantic Canada in its annual housing outlook report.

..

ReMax is also forecasting that average home prices by the end of this year will be up by 6 per cent to $372,000.

...

While Toronto will do well, the Hamilton-Burlington market is expected to outperform in 2008 with a gain of 8 per cent in average home prices, according to ReMax.


This is great news if you are a homeowner looking to sell but it is bad news if you are looking to buy. Who is pushing this demand? Of course there is some domestic pressures pushing up housing prices but mass immigration is amplifying it. This is why property developers are part of the pro-mass immigration lobby. This is also why urban sprawl is out of control. Get a better job you say? Easier said than done but you'll need a handsome household income if you want to be able to bid on housing in Toronto.

This is also from the Toronto Star.

Rental market upswing gives boost to REITs

Oct 18, 2007 04:30 AM


Apartment real-estate investment trusts are expecting solid revenues for the rest of the year as high home prices and financing difficulties keep unit vacancies at all-time lows and allow landlords to raise prices.

"We've been in this business for 10 years and we have never seen as few vacancies as we are seeing now," said Michael Newman, chief executive of InterRent REIT.

"A lot of it does have to do with affordability of housing and people just not feeling comfortable making an investment when the economy seems to be somewhat unbalanced."

...

Some would-be home buyers are also finding it more difficult to get financing and carry a mortgage, as the so-called "credit crunch" is leading to higher mortgage rates for some buyers, as well as less availability for those deemed risky.

...

Both REITs say they also been able to raise unit prices on turnover at higher rates than they would have in the past.


There are several factors that contribute to high housing and rental prices. Mass immigration is one of them and we can influence that. We should demand a dramatic decrease in the number of immigrants this country receives because it is hurting the most vulnerable of Canadians. A considerable portion of subsidized housing in Toronto has gone to immigrants. If you don't believe me then go to any subsidized apartment building at random and look at the directory of names. The next time CityTV or CTV news does a story on habitat for humanity just look and see who the new tenants are. Why do we allow this to happen when there are many Canadians who could use the assistance? Why do we allow Canada's immigration policy to continuously hurt low income Canadians and postpone the home owning dreams of many Canadians? Whose country is this after all? When the decisions of others affect your quality of life it is your responsibility to speak out.

Related:

More immigrants = More cars on the road

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