29 Jun 12 Charts About Canadian Housing That Will Make You Go WTF
12 Charts About Canadian Housing That Will Make You Go WTF
12 Charts About Canadian Housing That Will Make You Go WTF – article by Huffington Post. Although Canada has never built as many condos, RBC who created many of the charts here are not concerned as there’s still a housing shortage in Toronto and Vancouver where a lot of the construction is concentrated.
“It costs five times as much to upgrade from a Toronto condo to a house as it did five years ago”
“By 2016, the gap had increased to some $500,000. It now costs more to upgrade from a Toronto condo to a house than it did just to buy a house five years ago.”
“Despite that, the average house price — as measured by the MLS Home Price Index — rose 28 per cent, much faster than inflation or wages.”
Montreal has the same housing “shortage” as Toronto. So why aren’t Montreal house prices soaring?
“Given that Montreal is a job-creating powerhouse these days, you’d think people would have the money. Something other than supply and demand is driving up prices in Toronto. Market psychology, maybe?
Vancouver and Toronto are more expensive than Paris, New York and Tokyo
“When you take the suburbs into account, Toronto is more expensive than Paris, New York or Tokyo. (Here’s the proof if you don’t believe it.) And Vancouver is, additionally, more expensive than London and Los Angeles. Note also that Victoria, B.C., metro population 344,000, is more expensive than New York, Miami or Singapore.”
You can read the full article by the Huffington Post Canada below;
The evidence is building that Canada’s housing markets – particularly Toronto and Vancouver – are going out of whack. “No duh,” you say, “you noticed prices soaring insanely too, huh?” Well it’s not just that. It’s that these housing markets seem to be violating some basic economic principles.