How Bad Is It In New Home Starts In BC & Ontario: Really Bad To be clear: Homes to BUY We are experiencing a boom in Purpose Built Rentals like we haven't seen for 35 years Government has made many moves on tax relief & aggressive financing that makes Rentals attractive 2/
And there is nothing wrong with building rental units: it's smart & important Much of Ontario & BC's rental stock is old & tired all of these new units are needed & welcome And rental rates are way too high, the only solution is much more supply How about homes to buy? 3/
@ronmortgageguy I don't know Ron, March BC housing starts were up 20% year over year per CMHC, and are running at pretty high levels in historical context, do you really think there are so many rentals that non-rentals are running at very low levels - is there any data on this?
@ronmortgageguy As crazy as this may seem, expect higher prices for detached homes in the next few years. Don’t bet against supply/demand laws.
@ronmortgageguy Big shift towards rentals by gov means less affordable house ownership due to lower supply. Worse…when developers are mandated to have x% as rentals, it also means that the remaining new homes to buy are priced to subsidise the less attractive / restricted rental-only units.