1 in 5 homebuilders are nixing projects amid high rates. Here are your rights
1 in 5 homebuilders are nixing projects amid high rates. Here are your rights
More Canadian developers are slowing their pace of building or nixing projects completely. Here's what you need to know about your rights if you bought a pre-sale home.
My biggest complaint, as someone who's been working in the trades in Ontario since 2010, is that the amount of money that houses are worth has gone up like 400%, but the pay for the actual workers has barely gone up at all.
I remember when I first started working in a subdivision, there were billboards up saying you could get the cheapest base model houses for $200k. Those houses now are probably worth almost $800k, and the guys working in the houses probably make an extra couple bucks an hour compared to when those houses were selling for $200k.
So the developers are making huge money, the real estate agents are making huge money, the landlords and people who can afford these properties are making huge money too. But the people who actually build the houses make fuck all.
I fucking hate this world, all of us working class people need a general strike like right now.
Fuck the rich, fuck politicians, and fuck Doug Ford in particular
I mean, it's the price of land that went up. The house will always cost the same to build. It still sucks that the person owning that land and the one making commission selling it is making bank, but changes in housing prices (especially the ones that are already built and just sitting there) won't usually translate into higher construction salaries.
The house will always cost the same to build.
yes largely its the price of land but lumber prices are insane. 1 sheet of OSB is like 50 bucks. 2x6x12 is 15. not to mention copper prices for all the wiring
I'm in Alberta, and we actually got a pair of 10% reductions to builders pay rates in 2018, meaning we're earning 20% less now. Add in the sporadic work the last few years, and I'm having trouble keeping the build paid. We need a general strike.
and fuck Doug Ford in particular
Goes without saying, but in fairness, this one is actually a federal issue.
Like you point out, it is the land values that have increased, not the structure cost. Why? Because dairy and poultry farmers, propped up by an old-timey socialist solution to supporting agriculture – which, in modern times, has pushed beyond just supporting agriculture and has transformed them into being the richest Canadians – are buying up all the farmland they can get their hands on at hyper-inflated prices. If you get away from the productive farmland, into the rocky expanses of Canada, housing has remained quite cheap.
Thing is, it used to be that cities could buy up farmland for practically nothing, thus allowing new housing to be cheap, but those days are over (arguably for the better, as farmland is important, but that comes with a cost). They have to now be able to outspend the diary/poultry producers for that land, which is no easy feat. Even if the urban sprawl ultimately wins, it has to pay more than it historically would have when farmers were poor and unable to drive prices up in competition. And that is cost that you, the homeowner, ultimately have to burden.
I'll note that only Mad Max is willing to do anything about it. Take from that what you will.
Builders stop building during a lack of building crisis. Totally normal, nothing to see here folks. /s
We were building so little already, I can't believe that the already pathetic housing starts are getting reduced by 20%. The government should just step in with non-market housing already.
The canadian birth rate is below replacement. This housing crisis is only because the government is importing 1.1 million people every year, year after year.