Shard

Boise !!!

dbd33

Well, whether you can't afford $1,000,000 or can't afford $600,000, the problem is the same. Suppose people can borrow, and are willing to borrow, 4x joint income

2x60=120
4x120=480
Gap=120

I don't think most people can save an amount equal to their gross income. It could be that the $60k is low. If not then, in contrast with many posters on this thread, I think there's a housing problem.

Mordko

Half of 25 to 35 year olds own their homes

https://globalnews.ca/news/7662252/c...tate-pandemic/

scrubbedexpat091

And a few days ago the bank of mom and dad was reported as giving lots of money so their children could buy a home, so question is how many of the 48% in that 25 to 35 group who own got help from mom and dad?

If I got 6 figure gift from my parents, I could buy too.

Mordko

It was reported that 30% of first time buyers got help from parents and the average amount was $82k.

scrubbedexpat091

It's apparently a popular destination for Californians looking for lower cost of living, and demand is exceeding supply and so prices obviously being pushed up.

The domino effect, same thing has happened in Phoenix, Portland, parts of Colorado, Las Vegas, as one place gets expensive, people start moving outward pushing up prices further and further away.

Austin used to be an affordable city, but becoming the Silicon Valley of Texas, has pushed housing up, but it's still more affordable than California's silicon valley for tech workers.

scrubbedexpat091

It was quite a lot higher than 82,000 in Vancouver though.

"According to a new report by CIBC Capital Markets, over the first nine months of 2021, first-time homebuyers in Vancouver received an average of $180,000. This figure increases even more for parents supporting their children buying larger homes, with the average for move-uppers at $340,000."

Yes only 23% of first time home buyers in Vancouver received help from parents, BC as a whole, 30% of first time home buyers, but it's clear even people selling and moving up to a bigger house are still getting help from mom and dad.

https://dailyhive.com/vancouver/vanc...arents-gifting

dbd33

You didn't answer, do you, or did you, work for Ontario Hydro? I wonder because that's a cushy government job and would be consistent with your championing of the compassion-less free market for everyone else.

Mordko

Its kinda none of your business but I did not. I never had a government job. Did jobs for government companies as a contractor, yes.

In general, its better to deal with the argument rather than the person. I am not a fan of the theory that anti-market countries like Venezuela, Cuba and N Korea are full of compassion.

dbd33

Ha! I'll bear that in mind.

JamesM

Good article. It validates and supports that there is no shortage of housing but that the market is driven only by demand triggered by low interest rates and speculation/opportunism. A hint of realism from someone in the market although as always no risks mentioned.

My only advisory here is that these real estate association and people from within the interest always talk up the market- for their own reasons- not too dissimilar to the non-impartial banking content that gets shared here. A bank economist whilst looking at many variables will only share the favourable ones in public. Those who evaluate the risk in banks will see something very different.

Mordko

Thanks for the advisory. Sorry took me a while to figure it out. To sum it up, here is all one needs to know about housing:

1. Plenty of supply.
2. The market is driven by speculative demand which is satisfied thanks to 1.
3. Very shortly house prices will crash. Why? See items 1 and 2.
4. The unlucky people who own houses will be sorry. See item 3. What will happen to poor sods with multiple properties? Does not bear thinking.
5. Lucky people without houses will be the envy of those referred to in 4.
6. Advisory: whatever you do, never ever pay attention to people who know anything about the subject.

Many thanks!

scrubbedexpat091

BC Hydro pays pretty well too, they keep electricity rates low compared to just about anywhere in North America, so I don't have a problem with them paying well, did try a few times to get a job with them since they do pay well.

Shard

Going up to 35, that's kind of expected isn't it? If it were 20-30 it would be a more striking statistic.

Shard

I can imagine trading California for Texas, but California for Idaho ?! Well, I guess it's still in the West and if it's that much more affordable maybe makes sense.