The Canadian Housing Crisis Explained

Oh hi 👋 Thanks for the shoutout! I'll try to get more of my analytical videos uploaded here for my fellow nerds when I get a chance.

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

When people talk about how the US real estate market is overvalued, Canada shows that there is a long way that prices can still rise

I love how I have to educate myself on this through YouTube rather than being taught in secondary curriculum.

You can't buy a house. You can't rent a house. You can't live in a car. You can't live on the street. What are they asking you to do.

My parents and older relatives are celebrating how the money they have sitting in the bank is going up with that higher interest and is thinking of buying a bigger house closer to the golf course. Meanwhile my company just went on a hiring/pay freeze and I'm worried if by the end of the year my landlord is going to raise my rent again. It's really different worlds.

An entire generation of wealth, a full decade of nearly interest free debt that could've built infrastructure and provided service that could've been the envy of the world, squandered and left for future Canadians to sweep up

I am trying to avoid making any new buys at this point in other not to get sucked into a bear market trap.It's tough making money in stocks when institutional investors are the driving force behind the selling.. although I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

“You do not need to buy a house just rent ” is popular bad advice. But I’m wondering about the “cost” of no longer having a reliable income and loans to pay then you will become homeless for some time till you can bounce back on your feet. I’m still driving a 2008 Honda CRV with over 210k miles that was paid off over 10 years ago but I have gotten two houses. This is why we all need a good IRA. A Roth IRA is advantageous as it uses after-tax funds and allows tax-free growth. When I retired, I saved $3M million, and I won't be taxed on my withdrawals.

I am Canadian and bought a house by myself in 2019 with a fixed rate mortgage, before the pandemic craziness but still in the low rates time. My mortgage is up for renewal next year. The bank called me a year in advance to try to warn me that my mortgage is going to jump (though I was already well aware!). I live in one of the most affordable cities in Canada, and it's still going to jump about $900-1000 per month. I own a tiny 1950s bungalow. My utilities have gone up also $250ish per month, my insurance has jumped $100 per month, my groceries have gone up a ton too. My wage has stagnated, and I can't pick up a second job due to health reasons. To try to offset that upcoming hike and current costs, I'm doing intermittent fasting to skip dinner to lower food costs, and I'm giving up half my already small house to rent out the basement. What's scary about all that is that I am THRIVING compared to others, and lucky to have a house at all. I also did everything "right" - I started building my credit score from 18, got a fantastic career, saved for a decade for the down payment, never did anything like an expensive trip, have had the same car for over a decade... and even then I'm hanging on by a thread. It's so messed up. I don't know how people with kids afford anything.

Gen X - Some are screwed Millennial - Most are screwed Gen Z - You're all screwed

No one talks about the social impacts of high housing costs. Canada is falling apart… It’s not a nice, polite place anymore. People there are actually rude, untrustworthy, and unhappy. I thought it was the bad weather, but now I know it’s the lack of housing affordability.

As always, simple and plain bagel explaination. Thanks for covering this comprehensively. Would be good to see a follow-up on this now that sentiment is changing.

The "affordability rules" are a joke at this point. The goalposts have moved. Not only is the mortgage ridiculous, but fees/taxes/electricity/etc all have gone up. For a solo earner it's nearly impossible. Two income households it's very difficult. No foresight by our government to house our citizens or the millions of new immigrants. A failure and a betrayal.

As an American, this is terrifying knowing our housing crisis could get so much worse.

I have a younger family member who has a great job as an engineer, his partner a phd with a high paying job. All their friends are professionals good jobs. I was told when they get together at party's the topic usually ends up being how difficult it is to save for a down payment and buy a house in GTA or Vancouver where some of them live. If it's hard for these people it must be even worse for most.

Bought a house on Vancouver Island about 8 years ago for 153,000. Three years later we sold it for 300,000. It is now worth 500,000. I appreciate your commentary. It brings clarity to the housing situation.

As a torontonian, it was almost surreal when doug ford proposed developing our protected greenbelt. We have so many zoning problems here, that im still in shock no one is considering rezoning parts of downtown toronto to support more density. In addition, ive been staring at empty plots of land for decades, that are still not developed (again, due to zoning).

As a 46 y.o. Canadian, the one thing I absolutely CANNOT get over is that to have a generic, boring, run-of-the-mill life in Canada, you have to be wealthy. I've felt that way about my stupid country for almost 40 years now.

I bought my first house in Calgary 18 years ago. Since then prices have gone up $1640 on average every month. Incomes since 1980 have gone up 2.5x but the average new homes have gone up 13x. The traditional family is history as a result because one good income can’t afford a family. I bought my first house in Calgary 18 years ago, and if you average how much the same house today has gone up in price, it ends up being $1640 a month. My mortgage back then was $740. Now to buy the same starter home the monthly payment would be triple that. And there would be another 10 years of payments. Insanity.