A broad view of the Canadian housing situation, from cabins to Home Capital.
Every month, we bookmark a collection of stories that paint the picture of real estate, mortgages and the economy in Canada. Here’s our curated look at the month of June.
Are cabins the new homes? According to a survey conducted by Leger and released in a report by RE/MAX, it may be how as much 65% of millennials are looking to enter the ownership market. “I guess what the survey is telling us is that millennials are a little more open-minded about the way they can get into ownership,” said Elton Ash, regional executive vice-president of RE/MAX Western Canada. So here’s the question: does this show that young Canadian simply love the outdoors, or that they hate their chances of owning in the big city?
Read More: Saskatoon Star Pheonix
On the other side of housing affordability, rent prices in Vancouver remain the most expensive in the country, and prices continue to climb. In a report published by PadMapper, Vancouver’s median monthly rent for a one-bedroom unit is now $1,950, a 7% increase since last year. Not surprisingly, Toronto ranks second, with a median monthly rent of $1,790 (14.7% higher than this time last year).
Read more: Business In Vancouver
A recent article from Better Dwelling took an interesting look at the price of Vancouver real estate against the city’s GDP, per square kilometre. Theoretically, land is only as valuable as the resources on it – so seeing that Vancouver’s GDP per square kilometre grew, on average, 3.2% over the past 10 years is a reassuring sign that housing prices aren’t rising without reason.
Read More: Better Dwelling
Meanwhile in Toronto, the city has been pondering its housing supply shortage – one of the main reasons for the city’s recent boom in housing prices. And it seems like the city will be exploring its options, in the form of laneway homes. After a decision made by the Toronto and East York Community Council in mid-June, the city seeks ready to seriously consider the alternative dwellings as a way to increase supply and provide some much-needed rental units.
Read more: Toronto Star
Perhaps the most intriguing piece of news in regards to Canada’s housing economy this past month, and in recent memory, was the financing package that Warren Buffet and Berkshire Hathaway offered Home Capital Group a few weeks ago. The proposed deal gives the subprime mortgage lender a CAD $2.4 billion lifeline in exchange for about 38% of the company. For the short-term at least, Home Capital seems to have escaped turbulent waters, thanks to one of the most notable investing names in the world.
Read more: Financial Times
That was our top-line view of all the headlines circulating around real estate, mortgages and the economy in Canada. Check back next month.