CANADIAN REAL ESTATE MARKETS WON’T SEE A BIG BOOST FROM RATE CUT
Canadian real estate markets hit pause, with the theory being rate cuts would revive the market. That theory is playing out for sellers, but one of Canada’s banks doesn’t see it driving many new buyers. A new analysis from BMO argues the Bank of Canada (BoC) rate cut may boost sentiment, but won’t provide much affordability relief. In the near-term, they see the market being contained by surging inventory and a lack of affordability. Canadian Real Estate May Get A Sentiment Boost From Cuts,...
read moreSEVEN YEARS OF NDP AND HOUSING KEEPS GETTING WORSE
After seven years under the NDP, British Columbians face an escalating housing crisis. Despite a series of big and shiny promises made since 2017, the policies implemented by David Eby’s NDP government has exacerbated the problem at a time when the government should be doing everything possible to help alleviate it. As the housing minister and now Premier, David Eby’s approach has been filled with empty announcements and a lack of results. British Columbia now has the highest rental costs in...
read moreTRUDEAU WANTS TO MAINTAIN HOME PRICES WHILE PUSHING AFFORDABILITY. IS IT POSSIBLE?
The federal government is aiming to make housing affordable for younger Canadians while retaining property value for existing homeowners, Prime Minister Justin Trudeau said in an interview with the Globe and Mail. “Housing needs to retain its value,” Trudeau told The Globe and Mail’s City Space podcast last week. “It’s a huge part of people’s potential for retirement and future nest egg.” However, some experts argue that may not be easy to do. “His comments are extremely problematic,” John...
read moreCITIES ACROSS CANADA OFFER PROPERTY TAX BREAKS TO NON-PROFIT HOUSING. NOT MONTREAL
If the Yellow Door Housing Corp. were renting its rooms and apartments to low-income people in Toronto instead of Montreal, it would likely be exempted from property taxes. Same thing if it were in Edmonton, Calgary, Halifax and some communities on Vancouver Island. Instead, the non-profit corporation that houses vulnerable people in Plateau-Mont-Royal borough is spending what little money it has on lawyers’ fees to fight the City of Montreal in court to lower — not eliminate — its nearly...
read morePROVINCE GRANTS VANCOUVER’S REQUEST TO CAP RENT HIKES IN SROS
The B.C. government will grant the City of Vancouver’s request to implement so-called “vacancy control” on single-room occupancy buildings.The province’s move, which Housing Minister Ravi Kahlon called an “urgent action to reduce the displacement of vulnerable tenants” in Vancouver’s Downtown Eastside, was welcomed by both housing activists and Vancouver Mayor Ken Sim. The City of Vancouver contacted the province earlier this year to make an urgent request, Kahlon said, raising “serious...
read morePOPULATION BOOM HITS LIVING STANDARDS IN CANADA’S OIL PROVINCE
Canada’s oil-rich province of Alberta saw its economy shrink to 2004 levels on a per-person basis as the region’s population swelled, according to economist Charles St-Arnaud. Alberta’s gross domestic product per capita fell 2.2 per cent in 2023, the second-fastest decline out of any Canadian province, St-Arnaud, chief economist at the Alberta Central association of credit unions, said in a note to investors. The drop was driven by population growth of 4.1 per cent, well outpacing the 1.5 per...
read moreCMHC REVEALS HOUSING MARKET OUTLOOK FOR 2024
Canada Mortgage and Housing Corporation (CMHC) has released its highly anticipated Housing Market Outlook, offering a bleak forecast for the housing market, with rising costs and shrinking supply set to create significant challenges, especially for renters. The CMHC report traces the current affordability issues back to interest rate hikes implemented in 2022 to combat inflation. While necessary for macroeconomic stability, these hikes have eroded affordability for potential homebuyers....
read moreLIBERALS’ HOPED-FOR SUPPORT SURGE IN WAKE OF UNDER-40 TARGETED SPENDING BLITZ HAS YET TO MATERIALIZE
A month-long political sales job by Prime Minister Justin Trudeau, his cabinet and caucus attempting to raise awareness and – crucially – support for a slew of budget spending measures aimed making life affordable for Canadians has yet to pay off. In a bid to climb out of a 20-point deficit in vote intention, this year’s budget invested heavily in Gen Z adults and Millennials, loading $8.5 billion in spending on housing and other affordability measures, to woo Canadians under 40, while...
read more‘AMBITION… NOT MORE RED TAPE’: OTTAWA’S ASSESSING IMPACT OF ALBERTA’S BILL 18 ON HOUSING
The office for federal Housing Minister Sean Fraser says it’s still assessing Alberta’s Bill 18 for potential impacts on future deals with the provincial government that in turn has warned Ottawa to stay in its constitutional lane. Last week, Premier Danielle Smith introduced her government’s Bill 18 — the Provincial Priorities Act, 2024 — in the legislature. It requires provincial approval for any deal between Ottawa and hundreds of provincial entities ranging from municipalities to...
read moreOTTAWA IS FUNDING AFFORDABLE RENTAL PROJECTS THAT AREN’T ACTUALLY AFFORDABLE
When the $86-million low-interest loan for SoHo Italia apartment tower in Ottawa was announced in the summer of 2020, the federal government press release led with the line: “Every Canadian deserves a safe and affordable place to call home.” The project would provide housing for the middle class and “those working hard to join it,” said Ahmed Hussen, the cabinet minister then responsible for the Canada Mortgage and Housing Corp., which lent the money under the largest program in the Ottawa’s...
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