Jump to content

Housing costs in Canada


Argus

Recommended Posts

How is the average house cost $400,000? What is it minus Toronto, Vancouver and Montreal?

This is a lot more of the story than people are giving credit. Sky high prices in the hottest markets drive the averages up in a way that makes it look like they are telling a story that does not apply in the rest of the country. The avg price in Manitoba is $265k.

Link to comment
Share on other sites

I said New York, not Manhattan. I can get a place in Brooklyn, Queens, the Bronx of Staten Island a lot cheaper than that.

Not when it consists primarily (80%) in (3) markets hundreds of miles apart.

There are home builders in every community. I have yet to see how their costs are higher than their counterparts in the US. Besides, the highest costs are in the built-up areas, not in more rural areas.

It's not the cost of credit but its volume and application of use. When everyone down south is hanging out a shingle that means plenty of remodeling/building which drives costs/supply.

Seen no information that Americans are remodeling or building at a higher rate than we are either.

Edited by Argus
Link to comment
Share on other sites

Nice cherrypick. Prices in St. John's have skyrocketed due to Oil. More demand than supply. Let's check oh lets say NB with nonresource economy ballooning the market....hmmmm $170k...Halifax.... $280k...interesting $400k.

And the average in the US is $200k. If I wanted to cherry pick I'd use really low cost areas of the US

Link to comment
Share on other sites

And the average in the US is $200k. If I wanted to cherry pick I'd use really low cost areas of the US

Check out Cleveland or Detroit for a laugh. You could trade your 8 year old car in for a down payment.

Regardless, none of what's been said so far really speaks to the real reason why the prices continue to rise. This is a textbook market bubble, with price increases not being supported by the fundamentals behind them (mainly prosperity and rising wages). The prices in Vancouver and Toronto haven't been driven by better paying and more jobs in those areas. They've been driven by fantastically cheap borrowing and by a coinciding influx of money from real-estate speculators (both small-scale and large).

When interest rates drop, mortgage costs decrease, making it easier for people to buy more expensive homes and they invariably do just that. The real-estate investors know this and start snatching places up, hoping to either profit on quick flips or on rentals, driving prices up even further. At this point average Joe starts to clue in to what's going on and starts making similar plays. Up the prices go.

Of course this can't go on forever. Eventually the costs become prohibitive at even today's cheap borrowing rates. At this point condo developers end up having vacant units and Mom & Pa find their house flipping project selling at at break-even or a loss. Even worse, eventually the interest rates are likely to go up. At this point those heavily financed investment properties start becoming prohibitively expensive to carry and people can't afford to purchase them anymore anyways. We all know what happens next and it's long, long overdue in Canada.

Edited by Moonbox
Link to comment
Share on other sites

This is a lot more of the story than people are giving credit. Sky high prices in the hottest markets drive the averages up in a way that makes it look like they are telling a story that does not apply in the rest of the country. The avg price in Manitoba is $265k.

Yep...that's just how the math will always work in Canada. "Average" will mask a lot of variation across the country. Frankly, some Americans watching HGTV productions out of Toronto are astounded at the prices being paid for the "privilege" of living in a small, semi-detached, run down home "close to transit". A two car garage, treble bath, and good size yard drives the price even higher (< $700,000 ?!). No wonder that some of the poor dears also want an income generating apartment in the basement, which is in such demand, it spawned another HGTV program !

Link to comment
Share on other sites

A reason that Canadian homes cost more to buy is that they cost more to build. Start with basements.....in much if not most of the USA they don't have them. $20k to $40K(unfinished) right there. We have to put our water and sewer deeper to avoid frost. Site costs are higher since you have to dig a big hole and backfill it. Foundations must be deeper to prevent frost heaving, or you must have piles installed, both an additional cost. Lots of insulation in walls and roofs is critical. Windows and doors must be better. Furnaces have to be bigger, more costly and have extensive ductwork. Use of natural gas means an extra utility installed that is not found in many US homes.

And... labour costs are higher here for trades.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Unfortunately, your content contains terms that we do not allow. Please edit your content to remove the highlighted words below.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Tell a friend

    Love Repolitics.com - Political Discussion Forums? Tell a friend!
  • Member Statistics

    • Total Members
      10,755
    • Most Online
      1,403

    Newest Member
    Joe
    Joined
  • Recent Achievements

    • Matthew went up a rank
      Explorer
    • exPS earned a badge
      One Month Later
    • Matthew earned a badge
      Reacting Well
    • BarryJoseph earned a badge
      Week One Done
    • BarryJoseph earned a badge
      One Month Later
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...