558
Corporations hoarding homes thank Canadians for enthusiastically blaming immigration
(www.thebeaverton.com)
this post was submitted on 22 Aug 2023
558 points (97.8% liked)
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This does not necessarily mean they're being bought by corporations. Plenty of individual buyers are investors. And remember, investment properties go onto the market to get rented. If there was really a massive glut of investment properties being created, rents would be plummeting. Is that happening? Of course not. And houses are not only 20% too expensive. And if Toronto made 20% more housing would it solve the housing crisis, would it offset the damage done by "investors"? According to the CMHC, Toronto is only hitting half of its target for completions needed to put a dent in this. Mississauga is doing far worse (which is why I'm deeply skeptical of mayor Bonnie Crombie's attempt to take over the OLP -- she got me to register to in the provincial liberals leadership race just to vote against her).
In Toronto, the number of bedrooms per year built peaked in 2001, and went down to below half by 2019. The housing crisis happened because demand went up and supply went down. Nothing more, nothing less. And the reason supply went down isn't "corporation" or "investors", it's municipal governments that made housing illegal and the provinces that enabled them.
https://twitter.com/benmyers29/status/1222613287092785159
Imagine if there was a starvation crisis and it took years to get approvals to plant more farms. That would be insane, right? And it would also be insane if people blamed "farming corporations" for starvation, right? And yet that's where we are right now. People blaming "greedy developers" for the housing crisis that's caused by governments making housing illegal (unless they get a special one-off pardon, like a murder in the USA) combined with rising immigration.
If it really was just investors buying up everything, rents would be cheap. But since it's expensive both to rent and buy, it means there's just not enough stuff for all the people who want it. And if you can make a million dollars for putting up a unit, why wouldn't you? Well, if somebody was stopping you.
Your point is that blaming corporations is a cop out. My point is that blaming the corporations is not a cop out, and one of the reasons, not the only reason. NIMBY and zoning regulations are definitely also affecting the crisis.
That is such a naive point of view. Landlords would rather leave a unit empty instead of lowering rent because otherwise it would lower the value of their investment.
The housing market isn't a free market like you seem to imply. People need to have housing, so landlords will definitely gouge their tenants because they can and we see an article pretty much daily of renovictions and rent ballooning up once the lease is at term. Having more supply would definitely alleviate this problem, but it is only part of the solution. REIT buying swath of houses with lower interests than individuals is definitely inflating the prices because they can buy housing at a higher price, causing the other houses in the area to raise as well.