Quote:
Originally Posted by WhipperSnapper
Did you google money laundering and where Toronto or Canada ranks in the world before saying it's all fake? When one can register a company for $100 with an address taking prominence over personal info money laundering is going to happen. How about the world's biggest real estate bubble? Home buyers don't create bubbles and as a bubble refers to overvalued property. Investors (flippers for slang) do. More than half the units end up on MLS as rentals the minute the developer allows them to post. There are thousands of units for rent right now just in the downtown. There are also a significant undetermined amount that are off market but, that's a lot easier to write off as fake. No one is interested in delving into it and coming up with the real numbers. Canada has severe housing shortages amidst record number of visa issued. That's a MAGA level type contradiction. That's also Toronto in 1995 but, not 2023. The prices have increase due to zero vacancies but, not to the extreme affordability crisis in Toronto.
It's same like blaming interests rates on the the dip in housing investment in Toronto instead of market insecurity from the billions being written down in commercial property values. Allied REIT has written down half a billion alone and that there are much better real estate investment opportunities in Canada than Toronto
Regardless, I'm always entertained by those gloating that Torontonians can afford less and less from highly competitive low wages and pay more tax to subsidizing more housing for a growing number of people that come here just to use our amenities to the benefit of a select number of Canadians' pocketbooks. Those coming here to settle down and contribute have a record high dissatisfaction that is universally ignored. It's all about towers which, in itself, is entertaining. Proposals are the most popular among Toronto forumers. You don't need people to occupy them.
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Of course if you want to find people confirming a particular explanation you can always use google to find it. You can easily look online and "confirm" that the earth is flat, that prayer and fasting cure cancer, or that the covid vaccines killed more people than the disease. That doesn't have much relevance to the actual issue at hand. I mainly draw conclusions by looking at the stat fundamentals and from experts such as those presented in the housing policy course I took last year at Dalhousie. We can see the correlation between rising prices and the population growth/total compared to the number of new and existing residences along with the effects of inequality.
It's true that if prices are too high relative to incomes that the situation can't be sustained over the long term. Either demand has to drop, supply has to increase, or both. So if that's what some people want to call a bubble then ok. But the traditional definition would be prices that are high due to demand caused by an anticipation of future price increases rather than demand for the actual product. Basically people wanting to profit by reselling the goods rather than using them. Home flippers are basically like ticket scalpers. Scalping relies on either harvesting consumer surplus meaning that the initial price is lower than what some people are willing to pay, or on a shortage of the product so that some people wouldn't be able to buy at any cost. But it doesn't work without there being enough people who want the product for it's own merits.
Like if ticket scalping became so widespread that significantly more people bought tickets to sell them for profit than who actually wanted to attend the event. Eventually too few people would want to buy them for the high price that the scheme would collapse. If the scalpers would have to either sell at cost or even at a loss which would discourage them from doing it again... for awhile. So while there will always be some scalping for a high demand event as some level will always be profitable, that doesn't indicate that it's the main reason for high overall prices. It comes down to the ratios of speculation vs genuine demand.
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