I think the factor that was missed in the CBC reporting was the airbnd market. Many of those ultra-small condos are not designed for people to permanently live in them. They are about the same size of what you get in an all-suites hotel. They are ok for a week or so. If your a student or even single with modest income they are probably better than having roommate.
In BC they have cracked down on airbnb and many of those units are being put up for sale. Have not been following Ontario, but I though they were going down the same route.
Vancouver and Victoria has a major shortage of hotel rooms. Toronto as well. My preference would be to see more purpose built hotels instead more of these airbnb oriented condos.
I think this is very under appreciated. I was a bit surprised how mild the correction was when rates adjusted but there seems to be a delayed reaction as people realize the math doesn't make sense. I am in the reduce immigration camp but we have to admit how bad it would be if we didn't have 1 million plus fake students supporting the rental market and keeping landlords afloat. Even with them rents are falling. Inflation helps disguise it somewhat. Some 2018 pre-con buyers are able to sell for what they bougth for which seems like breaking even but most of my investments, income, and costs have nearly doubled since then so even breaking even is a big loss. The vaunted leverage that let;s you turn a $150,000 downpayment into $450,000 when a Condo goes up 30% all the sudden turns into a 100% loss when it goes down by 20% vaporizing your down payment.
Following relative to when, is a very important detail.
Following relative to when, is a very important detail.
Sure rents aren't dramtically affordable all the sudden but it indicates equilblrium. Removing a million temporary residents could cause a Covid like crash in rents. It's worth the risk in my opinion but it's not 100% clear.
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