Daniels MPV 2.The average house price in 2022 is C $762000. The extreme shortage of housing supply in Canada is the root cause of high house prices, while the shortage of housing supply is caused by baby boomers disrupting the market.Please Visit: Daniels MPV 2 to Get Your VVIP Registration Today!
According to Canadian tradition, older people sell their family homes, or downsize, or move into retirement communities. However, baby boomers born between 1946 and 1964, who account for a sizeable share of Canadian real estate, are breaking this traditional trend and “providing for the aged” in existing homes.
Baby boomers have witnessed the tragedies of long-term care and retirement facilities in Canada during the pandemic and remain vigilant about the future. In the next five years, more than 20% of Canada’s population will reach the age of 65. Many baby boomers are still working and are healthier than previous generations, so they are not ready to enter retirement communities or nursing homes. Many of the baby boomers’ parents are in long-term care institutions or nursing homes, and as a result, baby boomers have witnessed their parents’ isolated lives. In particular, there is a pandemic, where elderly people usually have to stay in their rooms because health regulations stop visiting. All this has led baby boomers to reject or postpone pension plans.
A report by the Royal Society of Canada, which looked at Canada’s long-term care and pension institutions during the early stages of the pandemic, highlighted its devastating state. Compared with other comparable countries, Canada accounts for a much higher proportion of total COVID-19 deaths in nursing homes-81 per cent in Canada, 28 per cent in Australia, 31 per cent in the United States and 66 per cent in Spain.
The housing problem has been going on in Canada for several years. As an immigrant country, at least 300000 immigrants come to Canada every year, but the housing supply is restricted by various factors, which leads to a continuous rise in housing prices.
Some foreign capital then entered the Canadian real estate market to invest and make a profit, further pushing up house prices and causing public dissatisfaction. People familiar with the matter said, “what needs to be restricted are those who have bought property in Canada but never come to live. They leave the house empty so that those who need to buy a house have no house to buy when there is a shortage.”
In the past two years alone, the standard house price in Canada has risen from C $563700 in January 2020 to C $869300 today. After the COVID-19 epidemic, the Canadian central bank slashed interest rates to ultra-low levels, and house prices continued to rise, with an overall increase of more than 50 per cent so far. Overall house prices in Ontario have tripled in the past decade, far exceeding income growth.
“I don’t think house prices will fall because of this,” said Simeon Papailias, founder of real estate investment firm REC Canada. Even if I think it does reduce some competition in the most competitive real estate market in Canadian history, I don’t think the two-year repair will have an impact on the underlying supply shortage. ”
Providing people with more affordable housing is one of the earlier campaign promises of the Federal Liberal Party led by Canadian Prime Minister Trudeau. The Liberal Party has also promised to impose a “foreign buyer tax” across the country to calm house prices.