How Do Boomers Expect To Sell Their Houses If Gen Z Can't Buy Them?
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When real estate crashed after the 1989 peak and the thinking was that the majority of boomers were housed, Mulroney was boosting immigration like no tomorrow.
Historically, Canada managed immigration through a "tap-on, tap-off" doctrine, aggressively cutting targets during economic downturns when the labor market was weak. In the early 1990s, the Mulroney government intentionally abandoned this cycle. Even as Canada fell into a severe recession between 1990 and 1992 and unemployment climbed from 7.5% to over 11%, the government introduced a Five-Year Plan in late 1990 that systematically expanded intake to a stable floor of 250,000 newcomers per year. This established a precedent of high, stable annual immigration (roughly 1% of the total population) that successive Liberal and Conservative governments maintained for the next 25 years.
Historically, Canada managed immigration through a "tap-on, tap-off" doctrine, aggressively cutting targets during economic downturns when the labor market was weak. In the early 1990s, the Mulroney government intentionally abandoned this cycle. Even as Canada fell into a severe recession between 1990 and 1992 and unemployment climbed from 7.5% to over 11%, the government introduced a Five-Year Plan in late 1990 that systematically expanded intake to a stable floor of 250,000 newcomers per year. This established a precedent of high, stable annual immigration (roughly 1% of the total population) that successive Liberal and Conservative governments maintained for the next 25 years.
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That's what private equity will do. buy all the homes so we will own nothing.
There are investors that will give you cash for your home. Gen Z will then rent from said investors.
Welcome to the new normal.
Welcome to the new normal.
Private equity and large landlords already own a growing share of single-family rentals in some cities. When boomer inventory hits the market with few local buyers who can qualify, those players have the capital and the model to keep buying and renting them out.
The bigger problem is that Boomers do not sell because their primary residence is the only asset that can be passed down without being taxed. Boomers are likely better off getting a reverse mortgage so they can pass down a portion of the house value without being taxed.
Canada really needs to put housing and other investments on the same footing WRT death taxes like the US does.
Canada really needs to put housing and other investments on the same footing WRT death taxes like the US does.
WRT death taxes?
If private equity happens, then I can see people not paying rent and the LTB will be full of cases. Like the one woman in Mississauga not paying for a year in half for a condo, the landlord was West Asian. It doesn't matter where landlord is from, I can't see private equity surviving long in tenant rental. Maybe commercial it might get by.
What has happened in other countries? They've been around longer and have less space than Canada. They would've encountered this problem earlier as their countries are older.
Lots of multi generational homes in other places. Lots more rentals as well. And while we have a large nation most of it is in harsher weather, harsher terrain, and far away from modern amenities making it more expensive to live there.
I wonder if the difference was thst they were able to attract educated and skilled laborers then? I know it sounds judgemental, but opening up things to people with no work history or skills like trudeau/Biden just taxes the social system offeri g nothing in return. I recall taking cabs driven by immigrant doctors and engineers during that era who were working on qualifying their degrees and are now dmstrong contributing members of Canadian society.
If it's any consolation, the housing prices in Canada are going to continue to drop over many years to come. Should make it easier for them.
Unless Carney increases immigrate even more than Trudeau has done...
Prime Minister Carney’s increased immigration proposal risks fracturing Canada further
Carney's push for higher immigration numbers is colliding with Canadian public opinion. Could this widen the country's political fractures?
thehub.ca
Unless Carney increases immigrate even more than Trudeau has done...
Prime Minister Carney’s increased immigration proposal risks fracturing Canada further
Carney's push for higher immigration numbers is colliding with Canadian public opinion. Could this widen the country's political fractures?
Yeah it’s a scary prospect for the future……but for economists , that short term payoff takes priority it seems.
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