My household is in the top 1% of income earners. We cannot afford a house in our exurb. 20 years ago, with this level of income, it would have been trivially affordable.
Yes, I rent for $4250 a home that you can buy for $1.7M. The distortion here is beyond ridiculous. The equivalent mortgage would be something like $7K before property taxes and maintenance.
Because you can’t imagine government moving fast enough to change policy, the only way out is likely a sudden and shocking collapse in home values caused by the bond market failing to continue its belief that Canada is sound.
I was renting a $1.4m home for $2200/mo in Vancouver. Something like a $10k/mo mortgage payment for 25 years at current rates. But they had bought it like 6 or 7 years before so _their_ mortgage was substantially lower.
We haven’t even seen the full brunt of this—every time one of these properties changes hands at this point as the current owner cashes out, we’re going to see one more of these “affordable” rentals off the market in one way or another. (Either they hike the rent to the point of unaffordability, occupy it themselves, or leave it sit empty to just store or accumulate value.)
And just to put it in some perspective—to afford that shitty run down house I was renting, you’d need to be making somewhere around $720k/yr pre-tax to pay the mortgage and maintain the “1/3 toward housing” ratio. People in Canada do not make $720k/yr.
Absolutely this. A friend considers herself too poor to afford a house in Vancouver. Her company makes $10M a year and she peels off 10% net profit. Only in Vancouver…
Yes, I rent for $4250 a home that you can buy for $1.7M. The distortion here is beyond ridiculous. The equivalent mortgage would be something like $7K before property taxes and maintenance.
Because you can’t imagine government moving fast enough to change policy, the only way out is likely a sudden and shocking collapse in home values caused by the bond market failing to continue its belief that Canada is sound.