Canada’s housing crisis nearing boiling point

Global News

4 Jun 202302:16

Summary

TLDRThe Toronto housing market is experiencing a crisis, with bidding wars and prices soaring far beyond asking. Families like Water's struggle to afford homes in desirable locations, while urban sprawl's environmental impact is a concern. Ontario plans to build 1.5 million homes in a decade, a challenge considering the last time 750,000 homes were built was 40 years ago. Federally, a goal of 2.5 million homes is set, but experts view these promises skeptically. The Prime Minister's own residence, 24 Sussex, symbolizes the nation's housing struggles.

Takeaways

🏙️ Housing in downtown Toronto is becoming increasingly unaffordable, with competitive bids often exceeding asking prices by significant amounts.
👨‍👩‍👧‍👦 Many Canadian families, despite having stable incomes and jobs, are struggling to find affordable housing and are stuck in condos due to the high cost of homes.
💼 The desire to live close to work and urban amenities, rather than commuting long distances, is a significant factor affecting housing choices.
🌱 Environmental concerns are being raised about the impact of urban sprawl on pollution and the need for sustainable housing solutions.
📈 Housing starts have not kept pace with population growth, leading to a shortage of affordable housing options.
🏡 Ontario has ambitious plans to build 1.5 million homes over the next decade, a target that will be challenging to achieve given historical construction rates.
🇨🇦 Prime Minister Justin Trudeau has set a national goal to build 2.5 million homes in the next decade to address the housing crisis.
🏠 The housing crisis is seen as a failure of policy and planning, with critics pointing out that the situation should not have come as a surprise given the lack of construction relative to population growth.
🔍 The script suggests that the government's promises to address the housing crisis are viewed with skepticism, likening them to a 'glass house'.
🏰 The script uses the example of 24 Sussex Drive, the official residence of the Prime Minister, which is in disrepair and has not been occupied for years, to symbolize the broader issues with housing in Canada.
💸 The high cost of repairing 24 Sussex Drive is highlighted as an issue, questioning whether it makes sense to spend tens of millions on a single residence when there is a larger housing crisis to address.

Q & A

What is the current state of the housing market in downtown Toronto according to the transcript?
-The housing market in downtown Toronto is described as unaffordable and competitive, with people often outbidding each other by a significant amount, making it difficult for many to purchase a home.
How much more than the asking price are people willing to bid in this market?
-People are willing to bid up to two hundred thousand dollars over the asking price, yet they are still often outbid.
What is the situation of Water and his family regarding housing?
-Water and his family are in a double-income household with good jobs but are struggling to find a suitable home within their desired location due to the high competition and prices.
Why doesn't Water want to buy a house far away from his job?
-Water doesn't want to live an hour and a half away from his job, his extended family, and the city, indicating a preference for proximity to work and family.
What is the environmental concern related to the housing crisis mentioned in the transcript?
-The environmental concern is urban sprawl, which could lead to increased pollution.
What is the Ontario government's plan to address the housing crisis?
-Ontario plans to build 1.5 million homes over the next decade to catch up with the population growth.
What was the last time Ontario built a significant number of homes?
-The last time Ontario built 750,000 homes in any 10-year period was between 1973 and 1982.
What is the federal government's goal in terms of housing?
-The federal government, led by Justin Trudeau, has set a goal of building 2.5 million homes over the next decade.
What is the metaphor used to describe Canada's struggle with housing in the transcript?
-The transcript uses '24 Sussex', the rundown residence of the Prime Minister, as a metaphor for the country's struggle to get housing right.
Why is the Prime Minister's residence mentioned in the context of the housing crisis?
-The Prime Minister's residence is mentioned to highlight the severity of the housing crisis, as even the Prime Minister's family cannot occupy it due to the high cost of repairs.
What is the main challenge in fulfilling the housing promises according to the transcript?
-The main challenge is the difficulty in keeping the promises of building a large number of homes within a short period, as it has not been done on such a scale in the past 40 to 50 years.

Outlines

00:00

🏠 Housing Crisis in Toronto

The script discusses the housing market in downtown Toronto, where affordability has become a significant issue. Despite having competitive bids, potential buyers are outbid by large margins. The situation affects many Canadians, including Water and his family, who despite having a double-income household, struggle to find suitable living space. They desire to live close to the city and not be forced to live far from their jobs. Critics are concerned about the environmental impact of urban sprawl and the need for affordable housing in desirable locations. The script also mentions that the housing crisis is not a surprise, as housing starts have not kept pace with population growth. Ontario has ambitious plans to build 1.5 million homes over the next decade, a goal that is challenging to achieve, considering the last time such a feat was accomplished was between 1973 and 1982. The federal government, led by Justin Trudeau, has also set a goal to build 2.5 million homes in the next decade. The script ends with a metaphorical reference to 24 Sussex, the Prime Minister's residence, which is in disrepair and symbolizes the country's struggle with housing issues.

Mindmap

Keywords

💡Housing Market

The housing market refers to the economic sector that encompasses the buying, selling, renting, and development of residential properties. In the video, the housing market is portrayed as unaffordable and competitive, particularly in downtown Toronto, where individuals and families are struggling to find attainable housing despite having good jobs and being willing to pay well above the asking price.

💡Bids

A bid in the context of the housing market is an offer made by a potential buyer to purchase a property at a specified price. The script mentions that people were putting in bids and thought they were being competitive by going over the asking price by a significant amount, but they were still outbid, indicating the high demand and intense competition in the market.

💡Outbid

To be outbid means that another buyer has offered a higher price for a property than what you offered. In the transcript, this term is used to describe the situation where despite offering a high price above the asking price, bidders are still losing to others who are willing to pay even more.

💡Urban Sprawl

Urban sprawl refers to the expansion of human populations away from central urban areas into suburban and rural areas. The script mentions critics' concerns about the environmental impact of urban sprawl, such as increased pollution, which is a consequence of the housing crisis pushing people to live further away from city centers.

💡Affordability Crisis

An affordability crisis occurs when the cost of living, particularly housing, becomes too high for a significant portion of the population to afford. The video discusses the crisis in the context of people not being able to afford homes in desirable locations, even with good incomes.

💡Housing Starts

Housing starts refer to the beginning of construction on new residential buildings. The transcript indicates that housing starts have not kept pace with population growth, contributing to the housing crisis. This is a key factor as the supply of new homes is not meeting the demand.

💡Mortgage

A mortgage is a loan used to finance the purchase of real estate. In the video, the affordability of paying a mortgage is mentioned as a critical issue, as people are unable to secure homes that they can afford to finance within their desired locations.

💡Environmental Defense

Environmental Defense refers to the actions taken to protect the environment from harm. The script mentions critics like Environmental Defense who are concerned about the impact of urban sprawl on pollution, highlighting the broader ecological implications of the housing crisis.

💡Ontario

Ontario is a province in Canada. The video discusses Ontario's ambitious plan to build 1.5 million homes over the next decade to address the housing crisis. This plan is presented as a significant effort to increase housing supply.

💡Justin Trudeau

Justin Trudeau is the Prime Minister of Canada. The script mentions Trudeau's goal to build 2.5 million homes over the next decade as part of a federal plan to address the housing crisis, indicating a national effort to increase housing availability.

💡24 Sussex

24 Sussex is the official residence of the Prime Minister of Canada. The video uses 24 Sussex as a metaphor for the country's struggle with housing, noting that the residence has not been occupied in years due to the high cost of repairs, which is emblematic of the broader housing issues faced by Canadians.

Highlights

Housing market in downtown Toronto is no longer attainable for many.

Bids are being outcompeted by large sums, making housing unaffordable.

Many Canadians are stuck in a cycle of bidding wars and unaffordable housing.

The desire for more living space is leading to a housing crisis.

Critics are concerned about the environmental impact of urban sprawl.

Canada's housing crisis was predictable due to a lack of housing starts.

Ontario plans to build 1.5 million homes over the next decade.

The last time Ontario built 750,000 homes in a decade was between 1973 and 1982.

Justin Trudeau has set a goal of 2.5 million homes over the next decade.

Industry experts are skeptical about the government's ability to meet housing goals.

The Prime Minister's residence, 24 Sussex, symbolizes the country's housing struggles.

The Prime Minister's residence has been unoccupied for years.

Estimates to fix 24 Sussex run into the tens of millions of dollars.

The housing crisis raises questions about the priorities in addressing housing issues.

The need for affordable housing that is also accessible is paramount.

The housing crisis affects not only individuals but also the environment and economy.