Days ago we asked for some hot ideas on how to save the nation. The roar from the steerage section was deafening. Suggestions flowed – thoughtful and practical – which by the end of this week will be in the hands of the leader of His Majesty’s Loyal Oppositions, aka Skippy.
A theme when it came to addressing the nutso cost of housing in Canada was this: back off. The best thing government can do is get out of the real estate business, and stop increasing demand. That went from scrapping CMHC to treating houses like every other taxable asset. Let the free market be free, the people cried, and stuff will get sorted out.
Amen. So proud of you, flock.
And this brings us to today’s episode of ‘Every Little Thing she Touches goes Toxic’ (music by The Police) – an ongoing tale of a woman (we’ll call her ‘Chrystia’) and the crisis of affordability her good deeds are making worse.
Where to start? How about the miserable, star-crossed shared-equity mortgage?
It was a dumb idea from the get-go, whereby taxpayers would chip in up to 10% of the downpayment on a home purchased by newbies. The gift would be repaid only after 25 years or when the property was sold, with a small amount of any gains going to the feds. The idea of the government giving people money to buy a leveraged residential asset was daft enough (since no renters benefit from Ottawa largesse), but restrictions put on income and max house price were unrealistic, unworkable and destined to spell failure.
So, fail it did. The plug has now been pulled. Instead of helping 100,000 dewy young couples get housed and shelling out $1.25 billion, the program received fewer than 19,000 applications, cost us $285 million. Of course, administering this turkey took millions more. And there will be residual costs – for up to a quarter century from now.
But wait. It gets worse. Didja hear about Hudson House?
This is a 23-storey rental building in Victoria that Chrystia visited three days ago, touting as a prime example of your tax dollars hard at work. Doing what? Making bank for the developer and owner, of course, thanks to a pot of money called the Apartment Construction Loan Program.
What is this program, you ask?
It hands over up to 100% of the costs involved in erecting new rentals. Developers make interest-only payments during construction on giant loans with 50-year amortizations at fixed 10-year interest rates. There’s also free CMHC insurance (developers pay no premiums). Another $15 billion is due to be thrown in soon because, ya know, Chrystia has so much extra money.
She said:
The completion of these 245 new rental homes is a prime example of how the federal government is building more homes for everyone, including families, younger Canadians, and persons with disabilities. Hudson House, which includes 39 accessible homes, will rent 227 homes at or below 30 per cent of the median local household income.
Well, not exactly. Turns out Hudson House is anything but affordable. Two-bedroom units start at $3,300. The cheapest one-bedder is almost $2,500. A studio apartment of 330 square feet is an eye-watering $1,680 for a space a couple of chihuahuas would find tight. The average rent currently being paid in the city, according to CMHC, is just over $1,500 monthly.
“Life at Hudson House is made up of efficient layouts, modern design, and Instagram-worthy views, with thoughtful touches that rethink what livability means in a rental,” says the developer. “Toss keys, mail, or leashes in a handy entry niche, sleep soundly on a murphy bed in select studio homes, and do all your laundry loads within your suite. Homes have just the right amount of detail and style for you to uniquely express yourself.”
So how did these guys qualify for $100 million in taxpayer money with dream terms to build something most people can’t afford?
Simple. It’s another rushed, flawed, kneejerk program in a federal housing response which is political, disjointed, patchwork and ultimately meaningless – like the shared-equity mortgage. Hudson House had to commit to offering just 20% of units renting for 30% of the median income in the area. Locally that’s about $112,000, so a unit renting for $34,000 a year ($2,800 a month) is considered ‘affordable’ even if it’s weensy. And in Victoria.
“How lucky you are to live in this amazing city — wow,” Chrystia gushed to reporters covering her visit.
And down goes another hundred million. So two hundred upper-income young professionals can live swanky on Blanshard Street, tucked safely into their murphy beds.
About the picture: “This shot was recently taken os an ’empty’ Toronto home,” writes Leslie. “Do you think the neighbours finally reported it? That would explain the ‘vacant home tax’ notice just received. Trouble is, it’s not so vacant, is it? Who’s looking out for the little guys, right? From a long-time reader and sometimes provider of critter photos.”
To be in touch or send a picture of your beast, email to ‘[email protected]’.
108 comments ↓
Close.
A picture of a raccoon is at least much better than another photo of a dogawful mutt.
Chrystia Freeland has lost her mind, even the financially unsavvy amongst us can see that.
The political/financial moves being made by her and the Liberals reek of desperation.
She is obviously not stupid, why doesn’t she find a job she is good at and can have some self-respect.
As prosperity in Canada erodes, this is getting old fast.
This weblog asked for suggestions/solutions. I gave mine.
A Socialist Dictatorship. We need it, want it, deserve it.
A chicken in every pot. Pot for every turkey.
Of course we will require a ‘Barbaric Economic Practices’ tip line.
For those, you see, earning the wrong kind of money, or money in the wrong ways, or those with simply more money than you. You know what to do Comrade. Drop a dime.
Let’s crack open those history book shall we? Our Rulers have perfected this:
“”Lavrentiy Beria, the most ruthless and longest-serving secret police chief in Joseph Stalin’s reign of terror in Russia and Eastern Europe, bragged that he could prove criminal conduct on anyone, even the innocent. “Show me the man and I’ll show you the crime” was Beria’s infamous boast.””
— —
#tbt
https://www.theglobeandmail.com/news/politics/conservatives-vow-to-establish-barbaric-cultural-practices-tip-line/article26640072/
Conservatives vow to establish ‘barbaric cultural practices’ tip line
ERIC ANDREW-GEE PUBLISHED OCTOBER 2, 2015
Love the photo.This little critter gets to live there for free!
Happy Birthday Garth! Have an awesome day!
You, Albert Einstein, and I have the same birthday!!
I guess we were one of the few qualifiers for the shared equity thing (yeah, yeah, I’m aware the government now owns 5% of my house, I’ve taken a gamble that we won’t move for 25 years and the time value of money will pay off, eyes WIDE open on that one). And we only qualified because my wife was back in school (sudden income drop!) and we live in Ottawa (where you can get townhouses for sub $400k). Sometimes I wonder if the policy writers just look at Ottawa or Canadian averages and make no attempt to do the math in, like, literally every other city. No chance we would have qualified back in Central BC unless wife had quit job and we’d bought a box in the sky.
Hear! Hear! Garth!
I wish our multiple levels of government would stop trying to “fix” housing. I’m not saying we don’t need zoning and regulation, just that these ad hoc programs never seem to achieve their stated objective of “creating more affordable housing”. In fact, the opposite seems to be true.
Ronald Regan once said “the scariest words you can hear from someone are ‘Hi, I’m from the government and I’m here to help.'” (or something like that).
I think that phrase captures part of the issue with our housing – the housing market seems to have survived the 2008 financial crisis, the technical recession we’ve been in since 2014 (source: Financial Post article by Coyne yesterday), and the COVID-19 pandemic. How is that possible when the rest of the economy waxed and waned?
It’s not only government intervention that preserved housing in the last 16 years, but it is part of the equation.
I wish our governments would stop trying to make housing more affordable – every single time they touch housing it gets more expensive. Our governments cannot seem to take the hint that they’re not helping … or they cannot lay off because they know there’s an election in the next 20 months and have to “try”.
For the record – I’m not blaming our governments for what people around my age (born in ~1985) choose to do: take on 30-70 years of debt just own a single family detached home in the 416… why, god why? The “government” isn’t responsible for a life decision like that one.
My wife and I are happy renters and have been since November 2018 – we thought housing in the 416 was unaffordable back then – and now just don’t care if we own a house because the cost and opportunity cost are just too high and with the current regimes trying to “fix” housing, I think housing will simply remain unaffordable.
Happy Pi day, and Happy B-day to Garth!
It’s seems our government has either never heard of moral hazard, doesn’t believe it exists, or (and this seems most likely) wants more of it because they believe they’re on the winning side of it.
Right off topic, for people not exposed to left wing news;
The new head of the GOP is the architect of Swift Boating.
It was proven John Kerry WAS a Nam hero, too late. The fake boaters had knocked Kerry down so president WMD got elected and told his lie, for VP Haliburton Proxy!
It seems like only a year ago our leader said that housing is not a federal issue, now they are flip flopping like a fish out of water and as per usual making everything worse, I call them the missionary government now. https://www.cbc.ca/news/politics/trudeau-housing-responsible-feds-provinces-1.6924290
What a mystery.
“” For years, Canadian businesses have been loath to invest in things such as machinery and equipment, or productivity-enhancing research and development. Spending on those items has even started to decline in recent years. “These are fundamentally important factors for equities,” BMO senior economist Robert Kavcic said in a note. “They drive earnings growth while also absorbing inflation, and they are right now tilted well in the U.S. direction.” Canada’s growth problem is quickly becoming a matter of national urgency. Economists and business leaders speak of serious risks to Canadian prosperity from falling standards of living and declining competitiveness. Real gross domestic product (GDP) per capita today has dropped to 2014 levels. Some interpret this as a lost decade for Canadian living standards. © 2024 Canjex Publishing Ltd””
— —
Just another day in a Former First World Country. Amateur move. We need bars on windows, doors. South American style. Almost back to 2019 Normal yes?
https://www.youtube.com/watch?v=_5nSiwBl22M
York residents receive doorstops to prevent auto thefts
CityNews Mar 10, 2024
Some Unionville residents say they received doorstops from York Regional Police in an effort to prevent break-ins to steal car keys.
https://www.blogto.com/city/2024/03/toronto-police-car-theft/
At an Etobicoke safety meeting attended by the constable, new advice was given to vehicle owners in the city: make it easier for thieves to access your keys.
Sometimes, although it seems that someone has successfully figured out a way to annul the laws of gravity, it always ends in a crash with injuries not distributed evenly.
If the Communist Party of China, with absolute power, couldn’t keep the suspension of the law of gravity going indefinitely, how could the Canadian Government expect to do so?
We have an opposition in parliament that is simply too protective of the public to allow for political manipulation of our free market system.
Problems occur when the government tries to bribe private businesses into doing work they don’t want to do. Private businesses will take whatever they can get from the government, and then do the bare minimum required to check all the necessary boxes, and maximize their idealized profit-driven vision. It’s essentially a lesson in malicious compliance.
You can NEVER rely on the private sector to provide services for people who are unable to pay for them. That’s not really a problem when we’re talking about televisions or tropical vacations, but when it comes to food, shelter, education, and healthcare, it’s a different story.
So rather than work out some convoluted scheme that funnels money to the private sector for no discernible benefit with respect to affordable housing, the government should have just done everything itself from the get-go. It’s a more efficient use of funds, and actually produces the intended results.
OPM is so easy to spend! Go Chrystia Go….away please
Happy B-Day GT!!
I am starting to get a little nervous: I took peace, order and good government as a given for Canada.
Yuval Noah Harari wrote about the concept of shared “fictions”, that hold human together to support complex systems; In Canada we are losing our belief in the fictions that allow us to be functional.
Police losing credibility; population is realizing they just can’t fight crime ; when they tell you to leave your keys by the front door as the criminals are armed….those we empower to defend us seem helpless and hopeless.
The Justice system is in dis-repute; seems they let out repeat offenders to continually victimize more Canadians. No consequences or culpability anymore?
Government breaking Laws (Saskatchewan) as the federal government has “lost legitimacy”.
Corruption: Arrive-Scam and more and more: Once again we all know there will be no consequences and the individuals involve will walk away wealthy….a looter culture.
Canada is not working, ineffective and overly complex. Lots of tax being paid for no results.
“Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.” -Yeats
The Ides of March are coming in 11 hours.
Global apocalypse will likely begin in days, even hours.
PREPARE
Thanks Garth!
Ah, Chrystia… who could ever have guessed someone with no experience in finance, and deeply pickled in Wokeism, appointed as Finance Minister for an entire country, would flounder?
Remember she said it was a fantastic time to borrow hugely in 2020-21 because rates were low? Then proceeded to borrow hugely?
A Mungerism applies here. Paraphrasing from a comment at one of the AGMs, he said that we’ve all seen that person who’s successful in their area, who then steps out of it and falls flat on their face.
If only a sturdy caboose provided financial excellence. Sigh.
Great photo!
In accordance with established precedent of steerage animal identification, I can definitively state that is a Red Panda.
The best thing government can do is get out of the real estate business, and stop increasing demand.
________
This confuses me to no end. If you decrease the demand to own a home then there is a corresponding increased demand for a rental home (condo/apartment/house/townhouse/whatever). The overall demand for a place to live stays exactly the same.
Cute photo but can see why home is considered empty – presumably that hole in the roof which is just below a downspout means mega mess in the dwelling area below. However, ample space for the raccoon!
So the rental building were the least expensive? unit goes for $1,680 per month. Over $20K per annum for a mighty 330 square feet of living space. Technically that does – just – run to under 30% of gross income for the ‘average’ Canadian household income of roughly $70K. Whee! Be interesting to review this a couple of years down the road, find out whether those rents have increased & by how much. Bet it will be a lot more than inflation!
Hey Crowdie,
Not a full vindication, but hey a lot more accurate than the expert’s forecast.
Lower Mainland gas prices increase, could reach $2.30 by late spring: expert
https://www.msn.com/en-ca/money/other/lower-mainland-gas-prices-increase-could-reach-2-30-by-late-spring-expert/ar-BB1jTl6a?ocid=hpmsn&cvid=9b7f8e2094224beca898740d7ca5bda8&ei=37
I love how the upper eaves trough down pipe is dumping water right into the hole haha!
That attic must be a bloody mess.
The ever evolving Housing dumpster fire initiatives are only one of many half baked brainfa#ts that illustrate the incompetence.
Carbon tax, Dental, Pharma, 10$ Child Care, Arrive Can, WE, Muskrat Falls, Trans Canada Pipeline cost overruns. Money Laundering, Bolstering the Fed Payroll by 38%, Health care costs blowing up (they control the funding rules), productivity in the toilet….. on and on.
Arrogant, Rudderless, ideological, spendthrifts with 0 financial acumen. This does not bode well for future generations. No wonder Morneau bolted.
This experiment in ignoring basic financial common sense is putting this country, and its citizens, in a very tenuous position.
Of course, they won’t be around for the fallout.
https://betterdwelling.com/young-canadians-wont-have-the-same-opportunity-as-past-generations-oecd-forecast/
Sunny and record highs this weekend in unaffordable Van, so there’s that.
Pierre will win….. if the Liberals keep letting Chrystia talk.
Happy Birthday To a great Canadian!
Thanks for the Blog and your patience.
Possible rate cut moving to fall?
A single fat inflation point is not a trend yet. I predict more.
Reuters) – Wall Street’s main indexes slipped on Thursday after hotter-than-expected producer prices data likely muddied bets around the timing of the Federal Reserve’s first rate cut and high-flying chip stocks extended their losses.
A studio apartment of 330 square feet is an eye-watering $1,680 for a space a couple of chihuahuas would find tight.
_____________________________________
Square root of 330 is 18X18.
A standard two car garage is 20X20, in my old national building code book!
Every government program comes with a cost and the potential for fraud and mismanagement. Less programs the better.
And to think, at one point Ms. Freeland was seen as the no-brainer successor to Mr. Trudeau. Now most see it as just no brain, full stop.
I wouldn’t even call that 330ft condo a shoe box. Do our lords now consider that suitable accommodation for us serfs? Hey, maybe we can bring those Tokyo coffin apartments to Canada next! I bet those would only be $1,000 a month!
Oh well, I’m off to cancel Disney Plus so that I can afford one of those mega-sized coffin condos. That’s how the math works, right Finance Minister?
BTW, I love that part boasting about “efficient layouts”. Cause that’s what it’s all about right, efficiency? I mean, how much space could you possibly need? Heck, you’ll be working 18 hours a day until you drop dead to afford that mega coffin place – it’s probably more space than needed!
My daughter lives in Hudson House. LOL. She pays $2,000 a month rent for a tiny studio. It has granite counter tops but she can see her stainless fridge from her bed. The bathroom is very basic. I thought it would be gorgeous. The building doesn’t have a/c and the sun just pours in. Very hot in the summer. No balcony. She does have parking and 24 hour security. 2 sercurity guys because there are always addicts hanging around. She is an RN and works with the shelters but still she does get nervous especially at night. You can get a really nice studio or 1 bedroom – for much less money in Toronto around King West – her sister is moving there. LOL. What a joke the Hudson is.
Reuters and other news outlets headlining today’s SpaceX launch: “SpaceX Starship lost on return to Earth”
They also headlined Jesus walking on water: “Jesus can’t swim”
#7 John_II on 03.14.24 at 12:24 pm
…and now just don’t care if we own a house because the cost and opportunity cost are just too high…
————-
This is where sentiment will eventually land with fthb’s right across the board. Quiet acceptance that the dream is dead. In post-Trudeau Canada, we are very close to where couples relying solely on employment income alone, will never own an sfd in any population centre in any Province.
Some will resign themselves to a life of (unaffordable) renting. Others will look at their options…
Meanwhile, the entire country seems to be in decline on nearly every front. Eventually, folks will accept this skidding into the ditch as a fact as well. That’s when some serious trouble will hit the stage.
data is free for all to see on google earth
…”new methane satellite will hold government and companies accountable
CNN’s Omar Jimenez speaks with Environmental Defense Fund president Fred Krupp about the new methane satellite set to launch.
#18 Sail Away on 03.14.24 at 2:04 pm
Elon gets it done….
– The point of being done is not to finish but to get other things done.
– Laugh at perfection. It’s boring and keeps you from being done.
– People without dirty hands are wrong. Doing something makes you right.
– Failure counts as done. So do mistakes.
– Destruction is a variant of done.
– Done is the engine of more.
#31 Sail Away on 03.14.24 at 2:04 pm
Reuters and other news outlets headlining today’s SpaceX launch: “SpaceX Starship lost on return to Earth”
They also headlined Jesus walking on water: “Jesus can’t swim”
////////////////////////////////
A wise man once said that he who takes offense when no offense was intended is a fool, and he who takes offense when offense was intended is a greater fool.
#21 Quintilian on 03.14.24 at 1:27 pm
Hey Crowdie,
Not a full vindication, but hey a lot more accurate than the expert’s forecast.
Lower Mainland gas prices increase, could reach $2.30 by late spring: expert
https://www.msn.com/en-ca/money/other/lower-mainland-gas-prices-increase-could-reach-2-30-by-late-spring-expert/ar-BB1jTl6a?ocid=hpmsn&cvid=9b7f8e2094224beca898740d7ca5bda8
********
I remember getting mugged in December when I mentioned that gas prices were going up again. They always go down in the winter at least that is the experience for the last couple of years…Last night gasoline jumped to $1.93 from $1.84.
Recency bias is alive and well.
I like the name Pepe better than Skippy. More skunk than kangaroo.
Very few got it right yesterday regarding revamping the government of Canada.
Most of the suggestions made won’t ever come to pass or become anything but screwed up until the government itself gets fixed first.
This effort by Freeland spelled out in today’s blog post is a prime example of how government just screws everything it touches.
Even more so in the many Govt. departments that need to be eliminated and turned over to the private sector.
As i said here yesterday, a good 70% of existing government services need to be eliminated altogether and left to the private sector.
The remaining government services are badly in need of a shakeout revamping to rein in borrowing and spending. And all before new plans that need to be set down for viable increased production to ever work out effectively again.
#32 IHCTD9 on 03.14.24 at 2:05 pm
Meanwhile, the entire country seems to be in decline on nearly every front. Eventually, folks will accept this skidding into the ditch as a fact as well. That’s when some serious trouble will hit the stage.
——————————————————
Our legacy of general prosperity and law abiding culture will only last so long as we decline. A Post-National State with no shared values or culture, is very fragile.
Our ruling class and institutions falter from a lack of will, confidence and faith. Look at Hatti, I am sure they have all the laws and institutions we have; but no one there trusts, believes or will stand up for them…..
The Canadian Armed forces crisis I suspect is in large part to the abandonment of the “masculine warrior Ethos” this current leadership can’t tolerate.
As things become more desperate the stakes become higher. A spiral of moral, ethical decline; we seem to be on a downward trajectory. If it was just economic I would have more hope…but moral weakness and surrender has taken hold of much of our ruling class and institutions.
We need to remove all the interference brought by government(s) which only create FOMO and increases in prices brought by Canadians over extending themselves. Let’s start by scrapping CMHC and have the lenders accountable for who they lend money to and truly assess the actual risk. Wouldn’t it be wonderful if I could go in the money-lending business and have an entity like CMHC take most of the risk. What fool wouldn’t take that opportunity. I certainly would be less concerned on who I lend to.
The new and competent financial leadership that will be here in North America by next year will correct all this stupidity.
I live in Victoria and there is NOTHING for rent at 1500. a month. Not even a garage would rent that cheap.
That said, I am in agreement that government should get out of real estate.
That, says CMHC, is the average rent currently being paid. – Garth
DELETED (Gross)
AS I said as well in yesterday’s comments, these government fixes will reach a point of no return in fixing any of the problems.
All that will be left hanging in the balance will be more borrowing and spending to feed a debt bubble economy built on debt that can only survive on more debt until debt and inflation buries us.
Forget the fix. Any attempt at a viable fix such as privatization I brought up in my last comment before this one will be too little too late.
I only posted what would have worked out years back as i was saying needed to be done a decade ago to loads of sneers.
And so i warned we’d end up like this to more sneers and here we are.
They don’t want to know what’s coming next. They will never be ready for it.
taxpayers take notice conspiracies could cost you $$$
bamboo laced ballots = five tons of fraud proof paper
In Cochise County, Arizona, giant rolls of supposedly fraud-proof paper are taking up space in a warehouse. CNN’s Donie O’Sullivan explains how conspiracy theories led to spending $200,000 on ballot paper the county can’t use.
https://www.cnn.com/videos/politics/2024/03/13/arizona-ballot-paper-conspiracy-theory-sc-orig.cnn
#43 Dolce Vita DELETED (Gross)
Admit it.
You sang along.
It was vile and gross at the same time. Not an easy accomplishment if you were to ask me.
Best Wishes My Liege, with many more to come.
—————————
PS:
Meteo.it LIES, yet again.
Published high today was 17 deg C for Reggio Calabria (my new digs).
My trusty Weber Instant Read Thermometer showed:
26.6 deg C.
Thus, when in Italia and you see the forecast high, add 10 deg C and you’re good to go (revised from add 5 deg C).
Wouldn’t want to scare away “I TURISTI” for the heat.
Bbq’d for 3 Polizia and Carabinieri today (and me). Beautiful day like the past month where it was only 15 deg C or so for the high per Meteo.it (23.3 deg C in Weber Thermometer land). Mt. Etna looking beautiful. Wished it would ooze some lava out so I can get a great night shot of it all.
The South of Italia is amazing even to former Northerner me.
#38 willworkforpickles on 03.14.24 at 2:32 pm
Very few got it right yesterday regarding revamping the government of Canada.
Most of the suggestions made won’t ever come to pass or become anything but screwed up until the government itself gets fixed first.
This effort by Freeland spelled out in today’s blog post is a prime example of how government just screws everything it touches.
Even more so in the many Govt. departments that need to be eliminated and turned over to the private sector.
As i said here yesterday, a good 70% of existing government services need to be eliminated altogether and left to the private sector.
The remaining government services are badly in need of a shakeout revamping to rein in borrowing and spending. And all before new plans that need to be set down for viable increased production to ever work out effectively again.
*****
I disagree. This is not a lesson that these services would be better rendered by the private sector, but rather a lesson that quality public administration matters. This government seems to believe that problems are solved merely by throwing money at them, but anyone with real world experience knows this is far from the truth. In addition to money, you need skills, expertise, planning, etc. In fact, sometimes you can fix/improve things and save money!
As near as I can tell, this government has done next to no planning whatsoever on most of its files. This federal cabinet is about as unqualified in terms of quality private or public sector experience as they come. You need only look at the top two – a drama teacher and a languages major/journalist – and it doesn’t get much better from there. I don’t mean to denigrate either of those two careers, by the way – they are of value to society – but only point out that they are poor preparation indeed for leading a country.
It’s amateur hour – or rather, an amateur 9 years. And the country shows it.
We desperately need a government that wants to roll up their sleeves and do the hard public administration work of repairing and fortifying our cherished Canadian institutions. That believes they are important and wants to make them stronger. That’s not what I see from Polievre and the Conservatives. I and the rest of the country have a lack of quality options. Heck, I’d consider voting Bloc if I could – at least they genuinely seem to care about the interests of the citizens they represent.
#30 Victoria on 03.14.24 at 1:58 pm
My daughter lives in Hudson House. LOL. She pays $2,000 a month rent for a tiny studio. It has granite counter tops but she can see her stainless fridge from her bed. The bathroom is very basic. I thought it would be gorgeous. The building doesn’t have a/c and the sun just pours in. Very hot in the summer. No balcony. She does have parking and 24 hour security. 2 sercurity guys because there are always addicts hanging around. She is an RN and works with the shelters but still she does get nervous especially at night. You can get a really nice studio or 1 bedroom – for much less money in Toronto around King West – her sister is moving there. LOL. What a joke the Hudson is
*************
Yah once a beautiful and relatively safe down town area…but NOT any more. People living on the streets, just around the corner from the local income assistance office.
#33 jess on 03.14.24 at 2:10 pm
data is free for all to see on google earth
…”new methane satellite will hold government and companies accountable
CNN’s Omar Jimenez speaks with Environmental Defense Fund president Fred Krupp about the new methane satellite set to launch.
****
How sensitive are the methane readers. Will it detect people farting?
Demand for housing is driven by individuals. Regardless of race, every person in Canada requires housing to shield themselves from the climate.
In Canada, our population is rapidly increasing not primarily due to high birth rates among native Canadians, but rather due to immigration. If solely reliant on natural population growth, our population would decline, necessitating immigration to maintain demographic balance. However, the current rate of immigration exceeds the capacity of housing supply to keep pace.
The solution is evident: we must reduce immigration until housing production can meet demand. It’s crucial to clarify that this proposition is not rooted in racism; rather, it’s an acknowledgment that individuals of all races require housing. Thus, we need to curb population growth in Canada.
Hmmm… cost of cars and owning a house.
Dear kiddos. Want to own your own place? This real tough math was what did it. Now, own place, and money and health are not an issue at our age.
Now, if you want to own a place where neighbours are polar-bears, good for you, and ask Wrk.Dover how to do it. For the rest of us, read on!
1) Cost of owning a car. According to National Post (linkie below) it is $16,644 per year. After tax money.
2) Put into a TFSA, after 10 years that is approx $225,000.00.
3) Find a significant other with same money-savvy. If already found, after 10 years that’s close to 1/2 mil sitting in your TFSAs.
Now:
5) Understand that rent is approximately equal to house yearly expenses.
6) Choose location wisely. If you can go to Europe, living without a car is what the majority do in NL, and getting that way in other countries, too. If stuck in Canada, get healthy living, join one of those car-share programs.
Really, you don’t need 2 cars. Please watch linkie #2 for the benefits of moving.
7) WFH makes it really easy, but if you have to commute into work, cycling (I did 13km each way) and bus in the winter (cycling was faster… sigh) is possible.
The end result is free money, a fantastic downpayment, no financial worries; health and happiness, no heartache when Skippy the non-finance minister pulls another one. What’s not to like? (we did this, and are financially and physically great. The math still works, maybe even better now than back then)
Linkie#1: car expenses: https://nationalpost.com/news/canada/cost-of-owning-a-car
Linkie#2: Gym of life: https://www.youtube.com/watch?v=KPUlgSRn6e0
#30 Victoria on 03.14.24 at 1:58 pm
My daughter lives in Hudson House. LOL. She pays $2,000 a month rent for a tiny studio. It has granite counter tops but she can see her stainless fridge from her bed. The bathroom is very basic. I thought it would be gorgeous. The building doesn’t have a/c and the sun just pours in. Very hot in the summer. No balcony. She does have parking and 24 hour security. 2 sercurity guys because there are always addicts hanging around. She is an RN and works with the shelters but still she does get nervous especially at night. You can get a really nice studio or 1 bedroom – for much less money in Toronto around King West – her sister is moving there. LOL. What a joke the Hudson is.
_________________________
There was a Global News feature on Hudson House earlier this week. An absolutely idiotic puff piece proving once again, main stream media refusing to hold gov’t to account to dumb, expensive ideas.
“May you have pain and suffering”
It builds character, and character builds greatness.
CEO of Nvidia
( maybe his is why there is so much anxiety with today’s youths, they have not been given experiences they had to suffer through)
https://x.com/Teslaconomics/status/1767941956402069595?s=20
Re #42 (grateful in Victoria”) comment that there is nothing in Victoria for rent at $1500. per month and your reply that CMHC say that is the average rent.
Actually, you are both right at this time. If you were to try and find a vacant suite within the City of Victoria at 1500 pm you would not be able to do so.
CMHC stats for the City include all the apartment buildings within City boundaries. THe majority of these are older structures with tenants who have been in place for years and because of BC rent control are protected in keeping rent below market. As a result no one moves for when they do they would be faced with paying market rent at another location. However ,the landlord of the building vacated will now be jumping for joy as there is no control on what a new tenant will have to pay. Likely the 1500 suite would end up, without renos, at around 2200 pm.
So unlike my understanding of rent controls in New York City where the “suite” itself is rent controlled, in BC, it’s only the existing tenant who has the advantage of rent control.
Therefore CMHC stats do not truly reflect what the current rental price of a typical suite would be if vacant.
#50 PeterfromCalgary on 03.14.24 at 3:19 pm
Demand for housing is driven by individuals. Regardless of race, every person in Canada requires housing to shield themselves from the climate.
In Canada, our population is rapidly increasing not primarily due to high birth rates among native Canadians, but rather due to immigration. If solely reliant on natural population growth, our population would decline, necessitating immigration to maintain demographic balance. However, the current rate of immigration exceeds the capacity of housing supply to keep pace.
The solution is evident: we must reduce immigration until housing production can meet demand. It’s crucial to clarify that this proposition is not rooted in racism; rather, it’s an acknowledgment that individuals of all races require housing. Thus, we need to curb population growth in Canada.
*****
Excellent post. Spot on. I’ve said it for years, the level of population growth we have now is simply not sustainable. It’s very obvious to everyone that it’s thoroughly out of control.
Fun fact, if last year’s rate of population growth continues, Canada will be a country of 300 million people by the year 2100. Does anyone remember voting for this? Because I sure don’t.
#13 SunShowers on 03.14.24 at 12:36 pm
Problems occur when the government tries to bribe private businesses into doing work they don’t want to do. Private businesses will take whatever they can get from the government, and then do the bare minimum required to check all the necessary boxes, and maximize their idealized profit-driven vision. It’s essentially a lesson in malicious compliance.
You can NEVER rely on the private sector to provide services for people who are unable to pay for them. That’s not really a problem when we’re talking about televisions or tropical vacations, but when it comes to food, shelter, education, and healthcare, it’s a different story.
So rather than work out some convoluted scheme that funnels money to the private sector for no discernible benefit with respect to affordable housing, the government should have just done everything itself from the get-go. It’s a more efficient use of funds, and actually produces the intended results.
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Hard to argue with this. We have a ton of useless civil servants and endless amounts of debt funded spending. If we are going to subsidize 400k per unit may as well have gov’t workers swing hammers and build this themselves.
But governing is hard, spending tax payer money and doing photo ops is easy.
I wonder what this racoon pays for his cozy attic apartment?
Happy Birthday Mr. Garth Turner !
We deserve the incompetent government we keep re-electing…
It’s easier to believe they are just trolling and gaslighting Canadians at this point.
Does the washer/dryer combo fold out of the wall like the Murphy bed does? Jeez….living in a space smaller than a garage…no thanks. What a great country we live in.
Chrystia the PM-in-waiting, huh?
We should all invest in some popcorn… 2025 debates are going to be interesting.
Wrote, deleted, re-wrote and then deleted again on your call to Stand and Deliver. I think steerage did pretty good, actually.
The key point underlying the philosophy was to get bureaucracy out of the marketplace. We can hope that PP will implement some of this (time will tell).
Another redundancy was a “Flat Tax” – another excellent inspiration. I would go one step further to say that only 40 hours a week, or a salary should be taxed. Bonuses, commissions and overtime should not have a percentage turned over to the government. Let people earn their way out of debt.
Well done Garth (and happy Birthday) ;)
Chrystia needs a sign on her desk, facing her (of course).
“It’s easier to spend $100 than to save it. Try harder.”
The state of our leadership, which was never stellar to begin with, is now just vomit-inducing.
God, make it dissolve quicker than 2025…
Sigh.
Happy Birthday, Garth!
According to Demographia’s 2023 survey of 94 major housing markets around the world, Toronto was the 10th least affordable. The region’s price-to-income ratio (“median multiple”) has increased from 5.2 in 2010, to 9.5 today, making Toronto more expensive than virtually any American city outside California and Hawaii.
#57 Bob in Hamilton on 03.14.24 at 3:47 pm
I wonder what this racoon pays for his cozy attic apartment?
********
I just assumed CHMC backstopped the loan and one of our prudent banks approved the loan with income verification.
For its part, Vancouver had the third-worst median multiple according to Demographia’s survey, trailing only Hong Kong and Sydney. Vancouver’s price-to-income ratio has increased from 5.3 in 2005 to 12 in 2023. Imagine this: Vancouver is pricier than London, New York, San Francisco, Los Angeles and Chicago.
#39 Dogman01 on 03.14.24 at 2:38 pm
As things become more desperate the stakes become higher. A spiral of moral, ethical decline; we seem to be on a downward trajectory. If it was just economic I would have more hope…but moral weakness and surrender has taken hold of much of our ruling class and institutions.
——————
Yep. The Libs have been an unmitigated disaster on the economic and financial fronts, but it’s the social fracturing of Canadian society that drives my personal decision making for the future. We can’t even have a frank discussion about it. I don’t believe PP (or anyone) can fix this southbound snowball. The cat’s outta the bag, and it ain’t going back in.
The worst part? It’s only just getting started. 5 years ago, much of what has befallen Canada did not exist at even half of the intensity compared to now. It’s not slowing down, and it’s going to get worse. IMHO, much worse. Right now, it’s a free for all.
Count me among the resigned. I can’t see improvement coming. The Libs aren’t listening, and PP doesn’t fill me with hope. I’m not going to sit around with my fingers crossed. I have already laid plans to exit the engagement.
“And this brings us to today’s episode of ‘Every Little Thing she Touches goes Toxic’ (music by The Police”-Thor Turner.
$$$$$$$$$$$$$$$$$$$$
You almost had it Thor, so close, here let me help you as long as I get an assist on the album cover.
Every Little Thing She Does Is Tragic.
Tragic, Tragic, Tragic…
M49BC
https://m.youtube.com/watch?v=aENX1Sf3fgQ
A wildly triggered Elon Musk cancels Don Lemon’s upcoming show on Twitter because Lemon actually conducted a real interview with Elon.
Happy Birthday Garth!
All the best…hope you are getting cake.
#13 SunShowers on 03.14.24 at 12:36 pm
Problems occur when the government tries to bribe private businesses into doing work they don’t want to do.
Exactly my thoughts. I have a hard time thinking government subsidies of any kind are ineffective at best, and utterly corrupt at worst.
If something is a public good, the public should pay for it outright. If it is not a public good, or at least a sensible operating expense, the public should not be paying for it at all.
P3s will always suffer from the fact that the public’s interest of maximizing value per $, and the private partner’s interest in maximizing profit are mutually exclusive goals.
If the a government were really serious about ensuring affordable housing, there is one, and only one, way to actually do it. Build basic, affordable housing units and rent them out, with resident property managers who are federal employees (corruption == getting fired == getting evicted). Charge below market value for rent if necessary, but make the difference a taxable benefit.
No matter how much that plan were to cost, It’s likely to be less expensive than lining the pockets of private developers and landlords with no accountability.
More evidence today that lower rates are a pipe dream. ZERO chance the US FED will lower rates after today’s PPI and last two CPI reports.
You are wrong, of course. – Garth
#15 Dogman01 on 03.14.24 at 12:41 pm
I am starting to get a little nervous: I took peace, order and good government as a given for Canada.
Yuval Noah Harari wrote about the concept of shared “fictions”, that hold human together to support complex systems; In Canada we are losing our belief in the fictions that allow us to be functional.
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I’ve read all three of his his books on human history and future. That was some years ago. I happen to be re-reading Sapians right now.
What you say is true!
Also in Sapiens he says humans were every bit as intelligent as we are 150,000 years ago.
The suddenly agriculture starts to spring up independently in several places on earth around 10 to 15,000 years ago. A few thousand years later written languages are pretty widespread. It’s almost biblical really. I’m not saying, I’m just saying.
He also talks about how humans have been wiping out other species for at least 10 r 15,000 years or more. The myth of indigenous people anywhere being he great guardians of nature is pretty much just a myth. Although I think the Hawaiians did a good job probably by necessity.
Happy Birthday Garth! Many happy returns on the day!
Suggestions flowed – thoughtful and practical – which by the end of this week will be in the hands of the leader of His Majesty’s Loyal Oppositions, aka Skippy.
///////////////
Skippy? What’s with the name calling that you are opposed to?
Am I allowed to say PM Justine? No. Pick a side and stick to it.
It has been his nickname since high school. You have once again embarrassed yourself. – Garth
If the a government were really serious about ensuring affordable housing, there is one, and only one, way to actually do it. Build basic, affordable housing units and rent them out, with resident property managers who are federal employees (corruption == getting fired == getting evicted). Charge below market value for rent if necessary, but make the difference a taxable benefit.
Prior to Brian Mulroney who was recently venerated here, that is exactly what CMHC did. If I recall, rent was limited to 30% of family income and once your income reached a certain level you had to move into market housing, either rented or purchased.
It was a hand up, not a hand out. Worked well if memory serves.
Source?
Maybe if you include shared housing. Maybe.
CMHC. Average of current rents paid. – Garth
Poor guy. Probably can barely pay for his cable. And now needs a roof repair.
Happy birthday, Garth. Thanks for being you.
Don’t forget to iron your birthday suit.
So, are we in a “paradigm shift” in housing, to smaller and higher priced, or is the old normal (detached, white picket fence, affordable) coming back ?????
A B.C. First Nation is partnering with a Houston-based firm to buy a ready-to-construct pipeline project that would supply natural gas to a proposed floating LNG export terminal north of Prince Rupert.
The Nisga’a Nation — whose lands are located on the northwest coast of B.C. near the city of Terrace — and its partner, Texas-based Western LNG, announced Thursday they will be acquiring the Prince Rupert Gas Transmission project from Calgary-based TC Energy Corp.
Financial details of the transaction were not disclosed, but TC Energy said in a news release that initial proceeds from the transaction will not be material. Instead, the company said it has the potential to receive additional payments contingent upon the pipeline getting built and beginning operation.
“Today is a historic day for the Nisga’a Nation and represents a sea change in major industrial development in this country,” said Eva Clayton, President of the Nisga’a Lisims government, in a news release.
“In taking an equal ownership role in this pipeline, we are signalling a new era for Indigenous participation in the Canadian economy.”
https://www.castanet.net/news/BC/477109/B-C-First-Nation-and-Western-LNG-partner-to-purchase-natural-gas-pipeline-project#477109
#47 Concerned Citizen
“This government seems to believe that problems are solved merely by throwing money at them, but anyone with real world experience knows this is far from the truth. In addition to money, you need skills, expertise, planning, etc. In fact, sometimes yoan fu cix/improve things and save money!”
……………………………………………………………………………………………….
Now you’re just preaching to the choir.
I’ve been saying this for a decade or more around here and much more still.
As I said, fix government first before anything else can ever hope to get fixed.
You start with eliminating the glut of excess government that is far better served by the private sector.
Then revamp the rest, reining in borrowing and spending slowly bringing back production.
Renewed production and less waste to account for sustained and rising GDP as opposed to the glut that exists leaning on debt on top of debt making up the sum total of quarterly GDP and anti growth.
Its not going to get fixed the way it should as i have been suggesting here the past decade.
I said the expanding debt bubble was going to result in an economy built solely on debt and it has. And that it would reach a point of no return and it has.
What will be left is the need for more debt to infinity to feed the debt bubble or collapse and chaos will ensue.
That time has come and debt to infinity is anything but infinite and will become our greatest undoing.
pipe dreams on 03.14.24 at 5:26 pm
“More evidence today that lower rates are a pipe dream. ZERO chance the US FED will lower rates after today’s PPI and last two CPI reports.”
“You are wrong, of course. – Garth”
His reference to PPI and CPI is not wrong.
Or are you referring to ZERO chance, but that there is more than a ZERO chance?
Be nice, and Happy Birthday.
That’s what you call a raccoon shower stall.
Had a house just like it years back but with squirrels.
The pounding of water runoff from the downspout on to obvious deteriorated shingles below it has created enough rot in the roof for a racoon or squirrel to chew through the plywood under the damaged shingles.
Flawed building design to begin with (just like government) would have far better been served with an extension runoff pipe over the roof to the eave, not left to runoff from where it was.
What does this have to do with the greater scheme of things in general?
Nothing.
DELETED
#80 Faron on 03.14.24 at 6:36 pm
CMHC. Average of current rents paid. – Garth
Meaningless to compare with a market rate. Apples to Oranges. Good luck to any single person expecting to rent a place for $1500 in Vic. Convenient for trying to take down Freeland, but dishonest.
We know you fancy her, but there is nothing dishonest about pointing out the relative unaffordability of what her $100 million loan bought. Using the best available data for context is responsible and correct. – Garth
Happy Birthday Garth! Enjoy your day
@#95 Sail Away
The “Lab Report and Cat Scan” was pretty good.
Got a laugh at work.
Happy birthday Garth! Thanks for your blog, advice and political insights!
The same old story, “Forward Through the Rearview Mirror”
#85 willworkforpickles on 03.14.24 at 7:54 pm
#47 Concerned Citizen
“This government seems to believe that problems are solved merely by throwing money at them, but anyone with real world experience knows this is far from the truth. In addition to money, you need skills, expertise, planning, etc. In fact, sometimes yoan fu cix/improve things and save money!”
……………………………………………………………………………………………….
Now you’re just preaching to the choir.
I’ve been saying this for a decade or more around here and much more still.
As I said, fix government first before anything else can ever hope to get fixed.
You start with eliminating the glut of excess government that is far better served by the private sector.
Then revamp the rest, reining in borrowing and spending slowly bringing back production.
Renewed production and less waste to account for sustained and rising GDP as opposed to the glut that exists leaning on debt on top of debt making up the sum total of quarterly GDP and anti growth.
Its not going to get fixed the way it should as i have been suggesting here the past decade.
I said the expanding debt bubble was going to result in an economy built solely on debt and it has. And that it would reach a point of no return and it has.
What will be left is the need for more debt to infinity to feed the debt bubble or collapse and chaos will ensue.
That time has come and debt to infinity is anything but infinite and will become our greatest undoing.
*********&
I had the same thought the other day. Fix gov and strengthen our democracy anything else is just a wet bandaid. Go after the root cause.
51 Deckchair
Check this out (I think Flop may have linked it awhile back)
https://www.visualcapitalist.com/vehicles-per-capita-by-country/
Many European countries have high motor vehicle
ownership rates. Canada is lower than US, Aus, NZ,
Italy. About the same as France. Yes, more than NL and many other Western euro countries, but not that much more.
#91 crowdedelevatorfartz
Don’t feed the troll.
PS: Do you post as Nonconfidencevote on the Burnabynow website?
It looks like Hudson House is another overpriced government fiasco, like the ArriveCan app.
(If what was mentioned above is true) Happy birthday Garth! I work with someone who also reminded me it was pi day as well. 3.14.
Great person, great day to be born. Did you eat cake or pie!? Lol
Hope you and your squeeze have a great one celebrating together.
#72 Slim on 03.14.24 at 5:09 pm
A wildly triggered Elon Musk cancels Don Lemon’s upcoming show on Twitter because Lemon actually conducted a real interview with Elon.
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Point of clarification: Under California’s Lemon Law, Elon has every right to cancel Don Lemon’s contract if unrepairable defects are discovered within 180 days.
Fact
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Learned some new acronyms today. I already knew DINKS but now they have GINKS.
Had a good laugh on the following two.
SITCOM (single income two kids oppressive mortgage) SINBAD (single income no boyfriend and desperate)
https://www.theguardian.com/society/2024/mar/13/dual-income-no-kids-free-time-dinks-social-media
So how did these guys qualify for $100 million in taxpayer money with dream terms to build something most people can’t afford?
..It hands over up to 100% of the costs involved in erecting new rentals. -GT
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This is what I’d call backward-robin-hood.
How many government pet projects went kaput after handing off billions in taxpayer’s money.
https://nationalpost.com/news/canada/companies-at-heart-of-arrivecan-scandal-received-more-than-100m-in-government-contracts
https://nationalpost.com/news/politics/arrivecan-app-so-poorly-managed-auditor-general-can-only-guess-the-cost
Is this a coincidence of serial-bad-decisions because they did not know the outcome, and miscalculated it
or
Is this a method?
@#96 Get off my lawnmower
You have to admit ….That was a good joke.
p.s. Nope..but I’ll check it out.
Trudeau banned energy on the west coast and Canada suffers economically but….. it’s OK for a native band to open a project and Trudeau says nothing?
https://www.bnnbloomberg.ca/b-c-first-nation-and-western-lng-partner-to-purchase-natural-gas-pipeline-project-1.2047078
Vancouver wouldn’t permit any multi tower development for years but a native band gets a big cash payment and boils 6000 units?
How weird is it that only special interest groups can get any benefit while citizens pay all the taxes ? One law for them, different laws for others? This can’t end well. This is like when US southern states were told they couldn’t keep slaves.
#89 Faron on 03.14.24 at 9:15 pm
Good luck to any single person expecting to rent a place for $1500 in Vic.
______
Yeah, I’m still not clear where that number came from. Average across the country is $2193 and a 1 bedroom in Victoria is $2116.
https://rentals.ca/national-rent-report
#61 Paddy
Jeez….living in a space smaller than a garage…no thanks. What a great country we live in.
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Whaddaya mean?
One of the greatest Canadians ever – Bubbles from Trailer Park Boys – lives in a shed, and he LOVES it!!!
It’s the Canadian way. Welcome to your future.
https://www.youtube.com/watch?v=4natA-l2R1Q&t=6s
Skippy.
“It has been his nickname since high school.” – Garth
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https://www.youtube.com/watch?v=hByob-5pPEs&t=2s
Building costs here in the interior are running $400/Sq ft. So your typical 2000 sq ft 3 bed house for a family of 4 would be 800k plus a lot so around a million. In Calgary with flat lots, particle board sheeting and vinyl costs come in a bit lower.