What prolongs the life of a terminally ill fiat currency? The struggles of the debtors. And that struggle is getting a lot harder, especially if you live in a large metropolitan area.
The housing affordability chasm in Metro Vancouver is measured in a new report by the National Bank of Canada, which found that an annual household income of $253,000 is now needed to afford an average house in the region worth $1.47 million.
It would also take 411 months (34.3 years) of savings to cover the down payment for this home type, with a saving rate of 10%.
Yup.
Here in Kelowna, the average house price is nearing one million.
I bought a single family home here in 2014. It has more than doubled in price.
It is a modest home that I couldn’t have afforded if I was buying it now.
Wha?
Okay – it’s the Daily Hive, so we don’t expect numeracy. At an annual salary of $253K, a 10% saving rate is ~$25K/yr or $860K over 34 years (I’ll give them the extra couple of months), That’s just a shade less than 60% of the cost of the ‘average house’ they are discussing.
I dunno, but I have rarely heard of > 50% down payment requirements – but like I said, it’s the Daily Hive.
I think the savings rate might be based on the after tax income $160k and there is likely to be an inflation factor also included in the calculation. This type of calculation ignores the bigger problem of money laundering by foreign investors.
This is free market, ni one is forced to pay.
Single home Corner lots are converted into 4-6 townhomes, making good return for developer.
I don’t like Vancouver, its like Toronto, densified.
And the market is established by supply and demand. So tell me … is Vancouver anything like the SF Bay Area? Where every desirable neighborhood and city is full of NIMBYS who make development a long expensive ordeal? And shut-down many other new homes altogether? Does Vancouver require both Fire Sprinklers and Photovoltaic Solar Panels on every home? Does a new 1-1/4” dual water service hookup cost almost $100k? Are you required to provide a separate water meter for your landscape (another $25k)?
Here in the SF Bay Area … new homes are a near impossibility. Supply has been getting choked-off for decades … and the cost of construction has spiraled out of control due to regulations and high labor costs. The supply side of the equation has not kept pace with population growth for years and years. And the government is making it worse.
Option A: Make that amount of money every year.
Option B: Launder money from overseas through Richmond casinos and pay off politicians so you never get arrested.
Drive the peasants out.
Is working exactly as planned.
The destruction of small scale landlords ,moving ahead perfectly.
The hive mind rules.
Enjoy.
Now with no reasonable rental accommodation available,the competition to buy intensifies.
With no increase in supply?
The same.
With intense competition from multiple buyers?
Oh yeah.
There is little government can do to help here,but a huge number of ways to make it much worse.
And the Provincial Progressives are exploring them all.
Perhaps turning Vancouver and Toronto into Provinces in their own right,would cripple their ability to steal from the regions.
For now these cities overwhelm any representation the rural citizens have.
And what is “Good” for the city is seldom beneficial to the producers they prey upon.
Controlling the Port has been the Game for ever.
War game it.
Controlling the Ports,the passes and rivers oldest game in human affairs,this is why cities have flourished and their reasons to be.
So when Gang Green succeeds in crippling trade,guess what falls first.
I keep waiting and watching for the urban collapse.
After Burn Loot Murder Summer,I believe we are well into it.
Chicago.
Detroit.
These were once “The places to be” as New York has been recently.
Now Vancouver and Toronto are cresting the peak..
Is enjoy the decline,like surfing the wave of destruction?
Or is that a bit too much?
JR, Again, astute observance. Detroit, Chicago, New York, Seattle, Portland, San Francisco all failing one after the other. Toronto, and Vancouver, plus other cities following. However, if the great reset planning, is to push the multitudes into the urban jungles, surely, this is not good advertising eh? Of course, there will only be the ability to rent, not own, assuming you can actually afford to rent. If not, into the fringes of society you will go, and they don’t particularly care where you end up, either a ten by ten foot apartment, or in a tent at the local park, as they won’t be living anywhere near such jungles. You would think though, that they would at least pretend, for the time being, to make urban living seem to be a good affordable thing.
Someone else here at SDA, recently suggested that the push for all to be vaxxed, is to be able to blame an imminent future major human die off, not on the vax, but on infected meat animals, aka mad cow disease. So they can then also kill off the majority of the meat herds, to improve their green new world plans as well. If the final plans are to have those allowed to continue living, to live in the decaying urban jungles, subsisting on stale bread and water, and using hand to hand combat just to go to the store once a month, surely, one would think that they would try to make it a little more appealing to the great unwashed. Again, at least for the time being. They should be trying to hide it all a little better, but again, they really don’t care that we know, do they! They have the upper hand now, and are going full steam ahead, and it’s now to late for us to complain or attempt to stop it. What evil SOB’s they are.