What broke Toronto’s rental market?

[@SteveBluescemi]

I wish they would've mentioned the other side of the coin, which is just as if not more important: lowering the cost to build at the municipal level. Yes, the federal and provincial governments need to invest large subsidies in social housing so that everyone can afford a home even when labor and material costs are high. But the municipalities first have to actually make building apartments possible. Zoning restrictions, complex/opaque/lengthy approval processes, endless community engagement that prioritizes the preferences of NIMBYs -- these all make building apartments very difficult even with deep government subsidies. Medium density social housing should be allowed outright in all urban residential areas, with height bonuses to compete with market housing projects.

[@davidcar4632]

You mean printing money again?

[@JeremyMacDonald1973]

@@davidcar4632 He said change zoning laws and significantly curtail NIMBYism... what does that have to do with 'printing money'?

[@JeremyMacDonald1973]

Social Housing is a tricky element. In general it has historically not been very good. Sticking all the poor people into a single concentrated area creates havens for gangs and drugs. This is why we had to tear down Regent Park. The current theory on how best to deliver social housing is to spread it all over the municipality. The theory is that this will reduce the downsides and also, potentially, break generational cycles of poverty by giving more and better networking opportunities to the users of social housing. Of course it is friggen hard to pull off this sort of plan in the midst of a housing crisis and the NIMBYism gets increasingly shrill when there is any discussion of government rent controlled units being included in a building project.

[@uncouver]

@@davidcar4632 SO much this, Supply WILL not fix this.

[@SteveBluescemi]

@@davidcar4632 not sure what you mean by this. Government subsidies for social housing are more akin to "printing money". Zoning reform increases productivity without spending money. And if land lift is captured with property taxes, it has the opposite effect that printing money has.

[@RobAlberto_4]

The CBC has a doc from 2015 called condo game. It's great and explains this at the time things were getting bad. It demonstrates the incentives and how government at all levels of all stripes allowed this to happen for money. And also how home owners as a voting block wanted this.

[@RobAlberto_4]

What the DOC shows that because condos (especially one bedroom ones) are at the bottom of the economic model of restate. It has upward pressure on all the ones above it. Making single family homes the most valuable asset in the market. Meaning the incentives to build single family unattached homes are astronomical. And lucrative for developers and investors. @janetkim2392

[@nicolasbenson009]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[@jojay6472]

Renting through "condo investors" is the worst idea ever. Rental buildings have advantage through economy of scale because you have one management dealing with all the problems.

[@class6aa]

The economy of scale only works I’m favour of the big apartment management corporations. Small scale condo investors usually have less bargaining power then apartment management corporations. It would be easier to negotiate with those small investors.

[@yathi]

This! If people want to buy condos to live in them, absolutely! But no one should be renting condos.

[@shauncameron8390]

@@yathi Renting condos make sense for those who know they'll be moving out in 5 years.

[@Liberal_From_Prairies689]

It killed Vancouver too. Nothing but approval of luxury developments full of condos that no one can afford and that sit half empty rather than affordable apartment complexes being built. The urban planning idea of "Vancouverism" fueled the affordable housing crisis in cities like Vancouver. Just as these condo developments in Toronto. They fell for the idea that all these towers to help with density would "keep rental rates low", which unto itself sounds foolish and like total BS. Not sure how anyone fell for that crap.

[@shauncameron8390]

Because due to zoning restrictions and high building costs, those are the only high-density housing legally allowed to be built. Affordable is just simply not viable. Thanks to mass immigration-induced high demand along with Toronto and Vancouver being cities that people are willing to pay a premium to live in.

[@dinkster1729]

@@shauncameron8390 Why not move some of these jobs out of Toronto and Vancouver? Housing might be more affordable elsewhere. Except for a job, I can't think of any reason a person would prefer to live in Toronto.

[@syamsalik1834]

​@@dinkster1729 Toronto is a central hub for well-paying sectors like IT, banking, and the service industry. For newcomers to Canada who don't drive, Toronto stands out as the prime option since suburban and rural areas lack comprehensive public transit. Students attending institutions like UofT, YorkU, TMU, and other colleges typically reside in Toronto; a two-hour daily commute isn’t feasible for most students. There are numerous reasons one might want to live in Toronto. Especially for international students without a driver's license aiming for a well-paying job post-studies to qualify for PR, residing in Toronto becomes essential.

[@Tobi-ln9xr]

That is the reason why in the so-called "skyscraper capital of Europe“ Frankfurt in Germany, the construction of apartment high rises is banned to keep housing affordable. The big apartment towers aren’t a relief for the housing crisis because they are bought by foreign investors and in the evening, you can see that only 1/3 of the apartments have the light on. The other ones are simply empty because they were bought by those investors.

[@jarvy251]

@@dinkster1729 It's never that easy. Businesses need customers, either individuals or other businesses- and they need partners to help operate smoothly and efficiently. They need delivery services either to send their goods to customers or to resupply themselves, for example. The further you are from a major city like Toronto, the more difficult and expensive it becomes. And the more people that live in Toronto and the more businesses that operate in toronto, the problem only gets worse. It's a rolling snowball, good luck stopping it.

[@dsteffler54]

I think they missed a huge issue (probably the biggest) .... Toronto used to have a very large stock of rental buildings, but because of rent controls most rental buildings were converted into condos... so much of the rental stock disappeared.

[@YanBrassard]

I think that it was partially covered when the professor explained effective market demand. Landlords cannot find renters with enough income to cover the costs so they prefer to convert into condos.

[@dsteffler54]

@@YanBrassard Most had the income, but it was politically expedient for the government to severely restrict rental increases.... so hundreds of thousands of rental units were converted into condos which were then sold.

[@TheTechnoPilot]

@@dsteffler54highly disagree, it’s ignorant and perpetuating developer propaganda to think that our already weak rent control is the cause driving the issue. If anything we need to both add in more tax subsidies, and support, stricter zoning laws that prohibit conversion from rental to condos for existing buildings, and government backed housing co-ops.

[@epictetus3406]

​@GlasflugelDriver yes more government interference is what we need in canada. We already have a broken economy, broken housing and no competition, lets have them make it even worse lol.

[@shauncameron8390]

@@TheTechnoPilot Yet here you are perpetuating government propaganda.

[@Butterfly-rd4je]

New builder rent units cost 2500 which a single parent can pay it on a low salary can't afford. Paying 2000 is a struggle as job don't pay 35 h/r. Its really hard to move to middle class so u can live a decent life style😢

[@bryankerr9174]

At 2:55 they briefly mention thar rent controls were put in place are the time condo construction started to dominate the market. Government did a lot to create this problem.

[@spelunkerd]

The hand of government is not always a positive effect. Building costs in cities like Vancouver have skyrocketed because of higher earthquake requirements demanded by the city. And renter rights have trumped the rights of landlords, to the point that squatters can live in apartments for months or even years without being evicted. Now landlords cannot reclaim the escalating costs of their mortgages because rent increases are capped. Anybody who is considering putting themselves into the situation of becoming a landlord needs to think again. Market forces will always be more efficient than the clumsy and inefficient hand of government.

[@vmoses1979]

Talk about a media that does a poor job of informing the public and asking politicians tough questions. When this longterm trend was happening - very little of it was mentioned in the media. Now that it is a huge crisis - the public broadcaster is banging on about it every other night.

[@djsiii4737]

Long story short Federal and provincial governments destroyed the rental markets and are now blaming and punishing municipalities if the problem isn't fixed 🤨🤨

[@shauncameron8390]

Municipalities played a prominent role in it with their zoning restrictions.

[@djsiii4737]

@@shauncameron8390 explicitly encouraged by the feds and cmhc

[@johngawrylash7732]

Doug Ford removed rent control on anything that became a rental unit after Nov. 2018. That didn't help.

[@shauncameron8390]

You're free to find housing that was built before 2018 as there are plenty to go around.

[@johngawrylash7732]

@@shauncameron8390 that's debatable on the amount available and the affordability. Removing rent control in any capacity during a housing shortage is something only a moron would do.

[@shauncameron8390]

@@johngawrylash7732 Rent control = lack of availability even if you're willing/able to pay higher prices.

[@johncam8420]

That wasn't designed to help. Just to get more built at market price. At best, it would stabilize...at best.

[@johngawrylash7732]

@@johncam8420 I get it , supply and demand but the market price is too high and the supply will never keep up with the demand because we don't have the infrastructure in place to support it and massive immigration , which Doug Ford supports 100%.

[@gabrieldomocos7570]

Remember when they were saying in the early 2010s that real estate was not following fundamentals? Pepperidge farm remembers

[@Captain0Newman]

That moment when you realize "market forces" just means "people with money"

[@shauncameron8390]

And people with money just means people who are willing to pay the market price.

[@songsongsingasong]

Excellent reporting and investigation, interviewing a wide array of academics and economists is always better and more objective than asking real estate agents like I see lazy reporters from other news sources do.

[@Saltytide2424]

As an agent in Vancouver I can tell you we do get a real feel for the market. Especially is active agents. Can really feel the market changing right now. Inventory up and prices cooling in most areas. But people should look to economists for the larger picture. I do have an economics and business degree as well so I use the expert opinions when consulting clients. But we have to be sales minded as clients are emotional

[@amateur_football9751]

Its not great reporting, they refuse to address one of the main causes 1) Uncontrolled immigration, over 500,000 per year, many of whom go to Toronto 2) Trudeaus Carbon tax which makes everything more expensive 3) Trudeau disastrous handling of the pandemic 4) Trudeau only reacted when his pool numbers were on the bottom

[@winonebud]

Sit in on an LTB hearing and all your questions will be answered.

[@yuding7813]

Correct, nobody gotta rent their units out if tenants can legally live in for free. When supply decrease, the price go higher, blame LTB and bad tenants for that😂

[@coffeebreak100]

I did a double take… It’s so weird to hear an apartment be called a condo… and have a different meaning to what I’m used to. Wow.

[@Todd.T]

Finally, someone mentions the truth instead of just blaming builders. I've seen projects that were going to be cancelled if the NDP got voted in because the NDP wanted to dictate rental rates regardless of the operating costs.

[@OurCuriousMind]

Everyone wants to enjoy nice homes but no one wants to work in the labour-intensive construction industry.

[@Buckshot99]

The NDP can’t do math.

[@asadb1990]

​@@OurCuriousMindim in construction but i work in the office. You couldn't pay me enough to work in a field office let alone actual labor work

[@OurCuriousMind]

@@asadb1990 Yes that's my point. If people want to enjoy something nice they need to pay for it - enough to pay the workers, suppliers, etc.

[@martink.6218]

I don't understand the logic in this documentary. They're implying that condos are bad and decrease rental supply/affordability, but at 4:30 they reference that 90% of condos are used for rentals. AT 7:08, they also incorrectly reference that developers charge high rents to make their money back, but condo developers do not rent units, they sell units. In fact they need to sell their units before they can start building, they technically set the sale price of the units, and the rental prices are set by the owners of the units (landlords or investors). Rental prices are a function of supply, demand, and interest rates. The reason rents are so expensive is because lots of people want to live in Toronto and a general trend for increased urbanization. With an increase in demand landlords can charge more, coupled with an increase in interest rates they NEED to charge more. You either need to increase supply or decrease demand. Their reference to "effective market demand" also seems incorrect. There is actually still a TON of market demand in the market. If it was the case that demand was broken, we'd see condos sitting empty and fewer purchases, but that's not the case, hence there is still strong demand. The answer is increasing the amount of new builds and expanding housing supply, which they are correctly stating, BUT why does it need to be government supplied housing? Will low income government housing reduce overall demand? Why not just approve more development in the city?

[@moonmissy]

Condos are basically fancy apartments that developers can get lots of money out of them fast. Why be a landlord when you can sell it for a chunk?!

[@shauncameron8390]

Thanks to zoning restrictions and high building costs, condos are the only high-density housing they can build with a decent ROI.

[@dwights1024]

it seems like you don't even understand the actual costs related to securing the land, costs to holding the land before its built, and costs to build, its more than you think so maybe you should educate yourself on that end first

[@Tribuneoftheplebs]

Bro you didnt even mention the juiciest part. You get that chunk plus condo fees in perpetuity. Those fees can be hundreds of dollars a unit every month. Its a no brainer why they would rather build condos over rentals.

[@shauncameron8390]

@@Tribuneoftheplebs Because they haven't been taxed or regulated into non-viability.

[@gj8550]

The Ford government broke the rental market. As pointed out by Hillbrand, 90% of Toronto’s rental supply came from condo units. In the past 2 decades, there has been a widening gap between population growth and condo starts in Ontario. Ford’s encouraged 0:02 tenants to stop paying rent during COVID and failure to fix the incompetent Landlord Tenant Board exasperated the rental problem. In recent years, mom and pop investors who buy condo units that constitutes a lion share of the rental stock, are penalized by the Ford government. Ford’s government encourages tenants to take advantage of landlords and when landlords try to seek justice by taking their bad tenants to the Landlord Tenant Board, they have to wait close to a year for a hearing and often their case get thrown out because of technicalities. A good number of existing landlords are fed up and try to sell their units. In recent years, there has been a substantial decline of investors buying pre-construction condos units. In 2021, Ford promised to build 1.5 million home in Ontario by 2031. This is just another political rhetoric and has already fell behind by a significant margin.

[@iwearlongsleeves]

tbh... a 2-step potential solution to multiple issues we currently face (e.g. lack of rental/living space, high food cost, high fuel cost, high vehicle purchase cost, climate changes) --> (1) reverse the "return to office" policy in both Canadian government and private sector, and encourage people to work remotely ; (2) re-zone office real estate space to residential living space, and convert those office buildings to rental apartments...

[@paulbadics3500]

Big impact on limited rental supply & their cost is too many taxes, restrictions, regulations & costs imposed by all 3 levels of govt including while in the past govts provides incentives & local municipalities notorious blocking any new buildings over 4-6 stories & density

[@victoriaman117]

"We need affordable housing" -How are you going to do that? "Increase taxes of course!"

[@Jessie-J]

Excellent video, thank you

[@jamiezhou5049]

It's about immigration. Back before people come to Canada for cheap land to farm or settle, now immigration come for city life in Toronto or Vancouver.

[@ScottsWorld1988]

Thank u for being honest

[@RS-xh8rq]

Landlord tenant board is the problem. People don’t want to invest as poor tenants are too difficult to get out. Minimum wage is driving up basic costs. Causing rents to go up. Government prints too much money driving up money supply. Market will deliver if government stays out of driving the costs up.

[@ivanknyazev3117]

Fix it please, because I want to come back, but right now its just unaffordable for my family. But I love this city with all my heart, it's the best city in the world for us

[@PercyY-ib2vx]

People only focus on renters, but landlords are also facing rising costs. Property taxes, maintenance, and soaring mortgage rates have all increased, forcing many landlords to raise rents just to break even or even take a loss. While well-intentioned, rent control policies often discourage new housing development, worsening the shortage. As a landlord, my mortgage payments have doubled or tripled by thousands, while rent increases are limited to just $40. Where’s the protection for landlords? The system is completely one-sided.

[@ctawab]

Change the building code. Reduce the requirements make it simpler.

[@AllanYPhotography]

Corporations like Blackrock and their proxies ruined the housing market. They own the vast majority of residential real estate, especially apartments in Toronto. They keep supply artificially low, even if a large portion of their assets are vacant. Regular Canadians cannot compete with large pools of ultra-wealthy investors.

[@diroval]

blackrock owns around 100k houses in the US....the whole market is about 15MN houses. in $ BR portfolio is worth around 60bn in a 40Tr market....so no, they are not to blame, they do not own the vast majority

[@AllanYPhotography]

@@diroval lol what companies and proxies do they own? Are you a bot?

[@humbugswangkerton9972]

We need to invest in more trades careers! I remember in highschool you were looked down on for not going to university, that needs to change since trades people now make more than arty/social sciences/usuless degrees!

[@asadb1990]

Sorry most of us don't want to work manual labor. What would be better is to improve worker rights, longer notice period from employers or payment in lieu of notice. Better working conditions, more opportunity for breaks, less micromanagement.

[@humbugswangkerton9972]

@@asadb1990 I guess most then don't want to make $80,000 - $140,000 per year then. Many of the trades jobs (electrician, plumber, carpenter, HVAC) are also unionized with strict rules on hours and OT. I have no sympathy for people who cry about wages/can't afford stuff but then don't want to actually work. Join the real world.

[@MsMarmima]

The only reason why your wages are still high is because other people don't want to do it lol

[@shauncameron8390]

@@MsMarmima Because they fear getting injured/killed on the job.

[@humbugswangkerton9972]

@@MsMarmima well then people aren’t that desperate then! Wake me up when people actually try hard and then complain. Next time pick science/business/engineering for a university degree and do “art history” as a hobby and not a career!

[@HeremodofGotha]

So many experts. so much great journalism. Research at it's best. Not a single mention of the word immigration.

[@robertpaterson3229]

This gives some background, but really there's a lot more to this issue. I do not know how they could make this piece and not even mention immigration. Canada has been taking in record numbers of immigrants. Canada takes in more immigrants (as a percent of population) than any other developed country. 40% of those immigrants head to the GTA. The Federal Government has increased this number and at the same time increased the interest rate which means even less is being built. Immigration is great, but we cannot take in record numbers of people and at the same time not keep pace with building enough homes for our existing population and for newcomers.

[@firstbluedragon]

Its another puff piece by the CBC pushing the liberal agenda of high taxes on the productive class

[@RealandOfficialDeanRaza05]

Prices are high because: #1. People love Toronto (Number of Population) #2. Local Government Spending is another reason why your taxes increase. #3. Number of houses, apartments, and condos. (Demand and Supply)

[@wanderrice3345]

Zoning laws prevent affordable housing as well

[@djayjp]

Are rentals not allowed in condos? All condos must legally allow rentals here in BC.

[@martin2289]

It's addressed in the piece around the 4 minute mark. Maybe go back and watch it first... ;)

[@djayjp]

​@@martin2289Doesn't really answer the question though. It just states that the majority of rentals occur in condos, but doesn't state that condo corps are legally compelled to allow them.

[@anubizz3]

@@djayjp Government subsidize , Government subsidize , Government subsidize , that what they want.

[@ctawab]

@@djayjp yeah he didn’t understand the question in the first place. It depends on the building. To keep tenants as Posh as possible, they only allow for owner occupancy.

[@ctawab]

And the condo board can decide whatever policies they want to implement. For example some condo buildings do not allow for Airbnb. While in some condo buildings do not let the renter do anything without asking permission of the owner first.

[@richarde7649]

The CBC advocating for more government spending, shocking!!!!

[@firstbluedragon]

Need to defund them ASAP

[@johnbunker5102]

In the 70s much of the rental unit market was served by "mom and pop" investors. People who bought property and put apartments up for rent as a way to invest money with the intent of padding their pensions. I know I did and, many of my friends and relatives did likewise. But, renters whined and complained about everything so, all of a sudden, we had what was called "The Landlord and Tenant" act along with its bureaucracy. Caps were put on rental increases and thus began the exodus of small investors. While the cost of living, cost of maintenance, taxes and insurance crept up, landlords slowly slid backwards. ( For instance, one year when the cost of living went up almost 3%, the allowable rent increase was 0.9%. This happened repeatedly and, still does. Small investors who, at one time, served 70% of the rental market, bailed out in droves. I sold off my residential properties and invested in commercial ones. Renters waged war on the "devil-spawn little landlords" and, this is what resulted. That 70% is gone and the remaining 30% build commercial units or condos. Well, no sympathy from me but I must say, "Ain't Karma Great?" How do you like your rent control now?

[@d1m18]

We are not in a cost of living or housing crisis, we are in a cost of greed crisis

[@shauncameron8390]

Thanks to government meddling.

[@bozelecter]

if you could expand a little more on your "government meddling" comment please

[@shauncameron8390]

@@bozelecter Mass immigration-induced high demand, taxes and restrictions on housing supply among other things.

[@Rnankn]

The concept of a home ownership society is flawed. Homes as financial assets because of their scarcity and exclusivity has become a racial, generational and class privilege which is unearned, and undemocratic. Homes are not banks, or casinos. The spread of the real estate-financial complex created a value model which underpins fictional wealth, pubic dependency, economic instability, and decline in social trust. It has turned half of the country into individualistic, anti-social property barons. This model distorts politics, creates an economy that rewards rent seeking, resulting in stagflation. Wealth by asset inflation and hereditary privilege with a underclass of serfs as labourers and servants was literally the feudal order that freedom was supposed to have replaced a century ago.

[@butwhytharum]

you said two different things.... one was 6 words long and directly contradicts the rest... owning a home isnt flawed.... leveraging yourself to "become rich" is the model right now. the more property you own on paper... (nevermind if you're in debt for it) the more you can leverage yourself and buy more rental condo's. the fall will be Glorious. if you dont have enough to BUY A RENTAL PROPERTY WITH CASH... you shouldnt be in the rental business.

[@ramsaybolton9151]

@@butwhytharum it's going to be the haves that end up suffering because the have nots will eventually come for them.

[@shauncameron8390]

@@ramsaybolton9151 And waste whatever they take from the haves eventually reverting back to have-not status.

[@ramsaybolton9151]

@@shauncameron8390 Not really because it's not the haves that actually build anything. They extract wealth. I run two businesses. One in industrial and commercial janitorial and the other in construction/renovation. If there were no bankers or investors I could still build. I could still farm. I could still live. The current haves are parasites that only live because the majority are conditioned from childhood into adulthood to be passive drones.I don't know how you somehow think a ML specialist or CNC engineer ( who don't make anywhere near the wealthiest in the country) are somehow going to be complete apes with resources.

[@PaulYewchuk-k2l]

I am a wanna be real estate developer. The reason developers don't build rental housing anymore is because the cost of construction is too high to be able to rent an apartment profitably. You can't even break even with construction costs as high as they currently are, never mind the high interest rates, hostile municipal governments, and shortage of construction workers because employers won't hire inexperienced graduates from Canada's construction schools. The Canadian government needs to pay off the national debt, lower taxes, and the municipal government has to approve rezoning applications to permit real estate developers to build high density housing units. There's a lot of ill will in Canada towards Canadians by the Canadian government. Everyone in Canada is a criminal. With that kind of attitude by Canadian governments towards Canadians, it will be a cold day in *ell before Canada becomes affordable again.

[@shauncameron8390]

And thanks to rent control, they're not legally allowed to charge the amount required to meet basic operating expenses.

[@alexanderh.999]

Blame government regulations and rental laws. Simple as that. When rental units are scarce, then price goes up

[@shauncameron8390]

Plus the fact that most people, immigrants and locals alike, only want to live in the big cities because that's were all the opportunities, amenities and social support are at.

[@Amaling]

Riiiight the condos are what’s making rental fees high, not the insane zoning laws which makes condos a much more financially viable option

[@shauncameron8390]

Exactly.

[@TheMrJdunks]

NYC Manhattan average rent is $5000usd. That why all my families live outside the city like Queen, Brooklyn, Bronx, Harlem. Same goes for Toronto, you want cheap rent live outside the downtown core.

[@shauncameron8390]

But NYC has the industry and opportunities to justify its high rent.

[@williamhaynes7089]

Condos pass all the fininicial risk to the unit holders, plus they can just move out and break lease w/o taking a huge finicial hit

[@asadb1990]

In ontario you can't just run out, you can still have a lean filed against you l

[@williamhaynes7089]

@@asadb1990 - same in usa, you owe money to morgage if not paid off, plus have contract with condo association.

[@MrKansaitim]

Answer: Developers cashed in and the city allowed it. Kickbacks help.

[@Freshlygrazed]

The government could have limited the number of Condos being built in the first place, but noooooo, everyone wanted to stay greedy. Can't wait for the homeless situation to triple this next couple of years! Bravo! 😠

[@shauncameron8390]

Government meddling enabled more condo-building as it made other kinds of housing either costly or illegal to build. No one got greedy except the government.

[@BikeHelmetMk2]

@@shauncameron8390This is correct. Rentals are actually taxed based on fair market value rather than construction cost, which is a dis-incentive to construct them. If you build nice cheap units, the government comes in and hits you with 5% GST that is actually significantly more - since fair market value will have risen, and they'll consider the fair market value of the units rather than the complete structure. So for example, let's say you build a 16 unit building for $4.8m. You put 25% down (around $1m) and get the rest financed, and get it built in 2 years (after permitting - which could be 8 years, lol). The government will look at the units and tax you GST on comparables. Let's say the market value is now $6.5m for a rental building in that area, but the government notes that individual units are selling for $500k now in condo buildings nearby - so they charge you 5% tax on $8m of fair market value, and require a payment of $400k immediately, before leases are signed. It's friggin' expensive building rentals. Who has $1.4m just laying around? Someone might if they could sell condos and have the buyer pay the tax rather than the developer. Subsidies and incentives rather than dis-incentives would be a good way to restore some balance to what is constructed.

[@chrisk4617]

They have been building condos for the past 20 years for rich immigrants and students, immigration has to slow down unfortunately so there’s homes for Canadians to live in

[@jaycommonsense2468]

I don't there only one country where immigration needs to be slowed . Other countries shouldn't have suffer from the governments dependency on student money

[@msbebelle07]

Condo exist because the one who makes the building is paid now with profits by the condo buyers , not over the years little by little by the rents…money quicker that’s the reality…and they are not responsable for renovations, réparations etc because they are not owners anymore, the condo buyers will have this burden…I don’t know what future holds 😢

[@hectorgarcia3675]

there are too many rich people, nothing more. If some can pay the high rent, why landlord will decrease the rent ?

[@andrewillomitzer3711]

Build all the homes/apartments with subsidies. Buy yours. Remove the subsidies for younger generations. Sound familiar? Suck up all the benefit... leave nothing behind for youth. Pensions, real estate, investing, policy, you name it.

[@jeremythebeer8609]

Or the Government gets out of the business... The market corrects naturally and we move on. If we keep interfering, things do not get better.

[@tetrahedralone]

The government is in the business with its unsustainable population growth targets which create artificial demand. This is what they need to stop doing.

[@bozelecter]

yea kind of like how it corrected it self in NYC right?

[@yuding7813]

​@@bozelecterNYC also has gov control. Check red states, google Texas housing price, you will be shocked. The more gov control, the higher price will be.

[@shauncameron8390]

@@bozelecter NYC has rent control. Do does SF. Yet that didn't stop prices from going through the roof along with causing housing shortages.

[@DanPocketRocket]

Usually however long it took to create a problem, an equal amount of time to fix the problem

[@SunflowerFlowerEmpire]

Why do we keep denying #ubi ?

[@tesseg]

Things were fine until Ford reformed rent controls in 2019, allowing landlord to kick tenants out, renovate, and rent the unit out at a higher price. Renovictions drove up rent.

[@shauncameron8390]

While rent control decreased housing supply.

[@newpapyrus]

Everyone can’t live in Toronto. The Canadian government needs to purchase about 25 square kilometers of farmland within commuter distance of Toronto dedicated to building high rise market rate condos and high rise rent controlled apartments like they do in Asia. Such an area of land could easily accommodate a high density population of 4 to 8 million people.

[@shauncameron8390]

But Asia is overcrowded and is home to Hong Kong, the city-state with the world's highest rent.

[@butwhytharum]

Greed and Low borrowing costs are whats doing it in the 2020's along with air bnb becoming a thing... go into debt to have a hotel room...

[@shauncameron8390]

Air BnB became a thing, because the government made long-term renting unviable with rent control and lopsided laws in favor of tenants.

[@MichaelChengSanJose]

Since it’s Canada, I actually expect some rational solution to the housing crisis. Meanwhile, south of the border, it’s devolving into real estate version of Mad Max and honestly, too many Americans love it.

[@NathanHassall]

Shannon Martin has 3 points on this subject and basically repeats them for the entire segment.

[@9UaYXxB]

Nonsense, this segment covers a LOT of ground. It's very well documented and presented.

[@604h22a]

What’s your idea then?

[@NathanHassall]

@@604h22a fire Shannon

[@MAGICOmagique]

Toronto is an absolute dystopia.

[@yathi]

We absolutely need public housing and purpose built rentals!

[@shauncameron8390]

But government meddling made then costly and unviable.

[@andrewthompson5242]

Rent controls make rental construction a less attractive option for developers. Those materials and manpower go into building condos instead. Mass immigration has also stressed the rental market incredibly. The problems stem from government policies and interventions. All the kinds of fanciful things politicians say and do to get elected...

[@HalifaxComputersRepair]

but now day 's that will not happen because everything is so expensive you might as well have RV free rent ......yes not everybody will do it but 20% will do it because construction workers cant afford 5k to spend on rent when your food is so high lol

[@bobbritch9555]

no one is building projects, no money in them

[@shauncameron8390]

Because the government made them costly.

[@firstbluedragon]

Margaret thatcher articulated why the subsidies went away "eventually you run our of other people's money". What people are asking for is mass subsidization to allow rents to be below the floor that they need to be at to cover the cost of the building. AKA socialism. People keep talking about " government funding". Translation, taxpayers. People keep talking about the government fixing healthcare. How well is that working currently?

[@TakaluKevin]

This program gives a totally inverted solution. Governemt needs to GET OUT of housing and NOT get into it more. Reduce regulation and let the market forces sort out this housing mess. Steep housing market crash and a economic depression alone can re-set this housing button.

[@johnnyboyvan]

It means greedy investors buy the condos and rent them out for ridiculous prices. 😮 More rentals built by the governments are required.

[@shauncameron8390]

Because thanks to government restrictions, they're the only entities that can afford to build and own property and also put up with the government's BS.

[@FrankHuynh]

Dang, time to react to this video!

[@stephenn88]

Yeah don’t be lazy jk

[@FrankHuynh]

@@stephenn88 haha!

[@ashishpatel350]

rental is just you paying someone else's mortgage. at least the condos are something people own.

[@shauncameron8390]

Especially if you live in the big city.

[@msbebelle07]

Agree..but some people can’t pay because the condos are to expensive and they have low income salaries…or some don’t pass at the bank…or singles with or without kids…we need also affordable appartements for those people to…

[@shauncameron8390]

@@msbebelle07 Condos are not expensive. They're just not made for the low-income crowd.

[@visionarystar8957]

For every condo they built they should of built rental buildings shame on you Toronto

[@shauncameron8390]

Government meddling made rental housing unviable.

[@orlimardriver]

There are no profits to be made from "affordable housing".

[@shauncameron8390]

There's a reason why Chretien got the government out of the social housing business once he took office.

[@davesmith7351]

Armine drives me nutz. As a trained economist myself, she should know better. It's psychology - not what you WISH it to be. Change the incentives and you change market behaviour.

[@MonteHill-e5y]

Condos......where you can "own" your rental property....sort of.

[@torontocharlz]

As a homeowner in Edmonton, come move here and drive up our property price 😈 muahhahahha

[@silentchaos888]

They should limit the number of condos that companies and rich people can buy. Who are buying to rent out to people. It's driving up the prices and rent.

[@dayup]

Everyone complains about the rent, and how government mismanaged this situation - they never thought why we came down to this. Canadians are lazy, entitled, not productive, there is no way we build enough houses efficiently. Even the immigrants moved into Canada are super entitled - hard working immigrant mentality does not exist anymore; more immigrants are from the tech, software, working in real estate, because these are the only territories that make money. Construction sites are toxic work environments, with only decent wages, but lots of effort, and not many young people would want to work there anymore.

[@ramsaybolton9151]

this is an absolutely insane opinion. This is a country with the second most trees in the world and the cost of lumber is still insanely high. Huge land mass and yet 90% of it is crown land. Even when you go 1:1 for dollar conversion you will stay pay way more in Canada than 30mins over the border in the US. We have high taxes and little to show for it.

[@shauncameron8390]

@@ramsaybolton9151 Also too much bureaucracy. High shipping and transport costs due to the population centers being too far from each other.

[@DDavidDVD]

Rent control killed the apartment market. Point simple.

[@NathanaelNewton]

Airbnb obviously..

[@shauncameron8390]

Air BnB is one of the end results of government meddling.

[@lorrainec8190]

Greedy property owners are killing rental housing.

[@shauncameron8390]

No. Overbearing government killed rental housing.

[@subhuman3408]

You failed at basic economy. It's because supply isn't meeting demand

[@MartinPittBradley]

Duh. Developers have a choice: get paid back within a couple years, or spend decades waiting.

[@jerrystackorstarve196]

You build 10,00 new homes this year but 100k new ppl come this year………..

[@subhuman3408]

It's actually 1 million this year

[@universeisundernoobligatio3283]

Maybe Canada should stop importing people to keep housing prices high and developers rich.

[@rickagfoster]

Did they mention airBnB once here? 🤔

[@shauncameron8390]

AirBnB is a consequence, not the cause.

[@rickagfoster]

@@shauncameron8390I agree, a consequence of ridiculous RTA act's rent controls, and LTB inability to enforce valid evictions for rent in arrears in a timely and fair fashion. Why deal when that headache when you can just offer daily/weekly airBnB?

[@shauncameron8390]

@@rickagfoster Exactly.

[@brianlagace57]

High interest rates will continue to destroy the rental market

[@shauncameron8390]

Along with government meddling.

[@cloutm_anager8262]

Government isn’t the solution. It’s the problem! Excess taxing (1/3 of purchase price) on building is causing the issue! I hate how Canadian media always says more government is always the solution. THEY CREATED THE PROBLEM!

[@BikeHelmetMk2]

Nutty taxation is one government caused problem that could go away. When you build a rental building, you're taxed on fair market value at completion rather than the construction cost. Let's say you build a 16 unit building for $4.8m. You put 25% down (around $1m) and get the rest financed, and get it built in 2 years (after permitting - which could be 8 years, lol). The government will look at the units and tax you GST on comparables. Let's say the market value is now $6.5m for a rental building in that area, but the government notes that individual units are selling for $500k now in condo buildings nearby - so they charge you 5% tax on $8m of fair market value, and require a payment of $400k immediately, before leases are signed. It's friggin' expensive building rentals. No wonder developers just make condo towers. At least you're not reamed by the Feds. Subsidies and incentives rather than dis-incentives would be a good way to restore some balance to what is constructed.

[@verybang]

300,000 is the worlds favorite

[@ahmedzakikhan7639]

Don't agree. US cities don't build much condos and average rent for studios in San Francisco and Manhattan and like 6k a month

[@shauncameron8390]

New York = world financial center. San Francisco = close proximity to Big Tech.

[@ahmedzakikhan7639]

@shauncameron8390 I know salaries are very high but rent is still unaffordable for many people over there. They have worse homeless problem.

[@shauncameron8390]

@@ahmedzakikhan7639 And both already have rent control.

[@thekingspin9846]

South Asia decided they liked your climate better and invited the extended family/village

[@ScottsWorld1988]

Studio .loft.1bedroom 2bedroom . Condo 2bedroom. Condo 3 bedroom . Then houses . Should all be priced n capped .if u got money to buy land n build a custom house for the rich go for it but don't be buying up lower income places

[@shauncameron8390]

[@newtonbrook]

Many condos are used as rentals

[@blackpanda7298]

It’s tragic af

[@kwfown]

Capitalism working as intended. Nothing to see here.

[@shauncameron8390]

Well, if you want socialism, you can just go visit Regent Park and Swansea Mews.

[@chesspain6704]

Organized crime? Money laundering? Who knows. Its okay just wait and see what happens next😂

[@Allen-k6n1o]

It’s the only thing people can afford a house is $1 million and more 🤑🤑🤑

[@obrotherwhereartliam]

supply and demand is a bogus reason to explain the housing crisis. As if an equilibrium is the real solution.

[@lakecityransom]

2:22 dannng go hard news

[@paulbadics3500]

Also mass big jump in immigration & int students in 22 23 making it much worse

[@Lisa.Tucker]

Everything about Tesla is crazy! The battery life, the tail lights, the interior etc. Tesla stocks is the best of them all! I have always hoped to invest in Tesla stocks one day but the thought of doing so without enough knowledge of the stocks market makes the whole thing less attractive to me. One cannot afford to lose any money in this era

[@LuckyCookie88]

God damn