Especially on primary residence where the interest isn't tax ductable. In America, it is. Just another gate keeping canadian thing. I understand that it's tax free when selling but that just benefiting people who already have equity. And considering the amount you pay over a loan it more than the cost of purchase over 20 year amortization it really sucks.
If your gonna go that deep in the calculation you have to take into account theres offsetting factors to that. Those lower taxes in the US come with higher healthcare costs that arent covered, more tolls on the roads, and even in housing market things like HOA fees are much more common (in some states and cities) which is not on the ticket price of a home. So lets stick to home to income ratio. Its bad enough. But if u start to disect deeper, then u have to look at the other side too, not cherry pick only what makes Canada look worse
If you use after tax income, then it is not as bad. Why? I used to do financing for farmers and business owners before I retired. Take the reported income, add back the personal expenses paid by the business paid, the non-cash expenses of the business, and you'd get the actual cash the cx was playing with. I regularly would qualify farmers reporting $10k in income for $1million dollar mortgages.. and that was using a stress-tested interest rate, not the lower actual rate the cx was paying
This is exactly why I hate when ppl say “It’s a global problem “ , “this is happening everywhere” . Like I understand home prices are increasing everywhere, but I’m sick of the gaslighting that there isn’t an inherent problem in the Canadian housing market that makes it WORSE than the global average
If you actually compare apples to apples it isnt really, NY and LA have very similar costs to Toronto and Vancouver. The US has a lot of really undesirable cities that pull their average costs down. That is not a good thing, its a result of poor public funding and lack of tax revenue.
@@BnMProductions11 You’re doing it again…. You’re NOT comparing apples to apples, have you checked the average income for New York ? The taxes on that income ? The cost of groceries, fuel , and medicine. The strength of the American currency vs Canadian etc… The density in NYC vs Toronto You think America has a lot of undesirable cities ? Literally everyone in Canada wants to live in Toronto. And just a few in Vancouver. That’s it, we have 2 semi desirable cities lol . Even in our crappy cities like Niagara Falls , the average cost of housing is DOUBLE than in Niagara New York ….
In Vancouver, the average salary is in between 40 and 60000 dollars. Average house is 1.7 million. Average brand new 2 bedroom, tiny apartment. In not good area is about one million. According to statistics, you will have to make $250000. For the bank to consider you. Ask an OK resk. That will mean that you and your wife. With top executive jobs. Making a 120000 you will still fail short. That's why I'm teaming up with 2 other architects. Define better homes for retire. People in mexico
I'm not even that interested in Canada, but since I've found you, I watch at least every other video of yours. You give off a come, sit down, listen to this and forget about the world for a bit vibe 👍
It as always kind of like this. Housing was always 1.5x America.. Now it’s way worse it 2x to 3x! Will we ever be normal wtf is going on with this country it’s been slowly dying and haven’t seen a bounce back even once!
I love this channel! Such a beautiful and intelligent host❤Yes, Canada is way too expensive lately but i still love it!😊 Canada will soon be the greatest place to live and do business once again.
The government in Indonesia🇮🇩 has a 1:3:5 policy. where for every one luxury house built by the developer. must also build 3 middle class houses(50-100m²) and 5 lower class houses(36m²). (but this is still not enough because rich people still buy these cheap houses for Investment ). so the central and regional governments also build cheap houses to sell to poor people. and Mortgage interest subsidies for each first home purchased. created a deviation in the property market for houses and apartments measuring less than 36 m². it only has a price of 25% of a 54m² house.
As bad as America is printing money Canada is even worse making the Canadian dollar have less value furthermore taxes are higher in Canada so what is left to pay for a home is less. GST PST income tax and added taxes of fuel making everything more expensive. Add to the that the endless regulation to build a home and it equals disaster. Pretty much everyone I know under 60 either moved out of Canada or wants to leave. Makes zero sense to be in Canada now unless you love the rain and cold for 10 months of the year
Im in a wheelchair. I been waiting for low income housing for years. Last I hear I’m getting up to the top of the list but that was last year. They can’t tell you where you are on the list because they don’t want you to get all excited. Or they don’t even know where exactly on the list you are…. Most likely that last one
What's happening in Canada ( especially Vancouver,Toronto ) is what's happened in southern California. Supply and demand, not enough new contruction, need for changes in community zoning laws to allow higher density housing units. Example Texas cities of Dallas & Houston combined construct more new homes than the entire state of California. Outside of Austin Tx, home prices are much much cheaper!
What I love about this woman is that she presented solutions at the end and brought in some positivity while the rest of videos like this leave it all doom & gloom.
You should be consistent in using the right kind of data when making comparisons; median house price versus median income, NOT average price versus median income. Average price can be skewed by very large and very small data points, whereas median is not affected by outliers.
Why didn't you use median house prices? Average house prices will be positively skewed. Though I doubt the story will change, Anyhow, great vid! Australia is going through the same problem.
Using a media price to wage is asinine. First time home buyers in Canada paid $530,000 on average with a 7.6% down payment. Average 36. 62% of first timers in gta & gva bought condos instead of single family detached homes.
Solutions: Earn more, save more, invest more, and HOPE that the federal and provincial governments actually/realistically try to meet new housing demands which were outlined not too long ago to bring demand and prices down. After all, it's critical that they meet the demand to lower prices for the greater good of the entire country AND if they want to keep their own jobs.. Brain drain and people just moving to more affordable areas is already a problem. If they care about how much they take in for taxes and if they truly want to control the national debt, they better work on it HARD. I'm hoping to be one of the people who will eventually be able to afford a piece of real estate if and when that HOPEFULLY happens. =) A good example of brain drain is the health care system where there is a shortage of doctor/nurses/specialists and millions of Canadians are without a family doctor. Of course, that's a whole other set of problems in that system, not just about housing. And yes, VOTING would send a strong message to the current government.. (which I'm not a fan of..)
What’s the point of life anyway? If you can’t buy a house, get a good job, build good friendships, have hobbies, love your friends, family and S/O, and expand your knowledge, then there is no point in life. Life is meaningless.
You, I, we, humans are the one who BRING meaning into life. Life is meaning if we make it meaningful-that's not necessarily the results, but the journey. Cheers!
Most of the US is undesirable real estate in butt fuck nowhere mid west states. If you actually look at the cost of living in LA or NY compared to Toronto, it is fairly similar. Canada has fewer rundown old coal towns nobody wants to live in, even the rural areas are somewhat desirable because unlike the US, we pay taxes and public services aimed to keep towns in good shape actually function properly. Dont get me wrong, our housing prices are out of control, but it isnt a Canada exclusive issue. For anyone bitching about canadas housing costs, pointing to the US. Go actually drive through one of these old West Virginia towns or Iowa towns where you can get a 3 bedroom for $300,000 and tell me if you would actually want to live there.
That's totally not true. The US just has a more spread out economy with more tier 2 cities with great infrastructure but not overcrowded. Think of places like Cincinnati, Louisville, Indianapolis, San Antonio etc. My cousin bought an amazing 3 bed home (newly constructed) for 150,000 in San Antonio. The city has a lot of job opportunities.
@@saiyedakhtar3931 This may be true. But it also has a lot more real estate in old rundown towns with not enough tax revenue. Just go drive through most of the north east to mid central US. It's an absolute dumpster fire that simply does not exist in Canada. Small norther towns are still maintained and are desirable as cottage country because of Canada's landscape
@BnMProductions11 that is also true, but it's a sign of a more dynamic economy. Old uncooperative towns fade away while newer ones grow. It keeps the economy more spread out and property prices low. Most Americans move around and sell their homes after 5 to 10 years. Personally, I would have the American set up as it makes owning a home easier. Having an affordable place to live is a necessity, not an investment like in Canada.
@@saiyedakhtar3931 I would absolutely not argue that is a sign of a functioning economy. I would say its a symptom of unregulated capitalism as the rich come in, pillage what they can and then leave the ashes to the locals who cant leave
Don’t rely on the government to solve your housing affordability. You have to improve your wage earnings, budget and save a down payment, work on your credit score if needed.
YES for voting (poilievre ;) )... There is nothing that can't be fixed if there is a political will... Chaging the zoning laws to be able to increase density; lower the insane level of immigration (for a bit ... hard as Canada is a immigration trap...) ... To me, it will be moving out of the country tho ;)
The Lieberal Govt of Justine Trudeau has opened the immigration gates, those new immigrant will need to be housed, thay thru hard work and pooling together their income like sharing in the mortgage among two families will compete with single families that have been in Canada for a long time.There will still be bidding wars for homes to come today and in the future.
😂 oh canada . Single family home zoning. NIMBY . Old rich people have 4 houses as an investment.The fastest time Developer to get Permit building a new house is 1 year. As bonus canada have justin trudeau😂. The woke of shame Increase house prices
USA has different interest rates. USA can lock in a rate for 30 years. Canada can lock in at 10 years max, but most that do lock I choose 3-5 years and then start paying the going interest rate again. Income, capital gains, state taxes, luxury taxes, fuel prices, and purchasing power all different. Most low information comparison ever. Treating viewers like npcs.
Yes, it is true that Canada is more expensive than America, but it is safer, more secure and has better quality of life.I know many Americans who relocated to Canada.
The margin is not much ..but income disparity is ridiculous..on an average Canadians earn a third of what Americans earn for the same role .. groceries are more expensive and so is housing..just terrible
@@siddharthchilukur5287 I am studying for pharmacy exams in Canada and I know many American pharmacists who are studying for Canadian pharmacy exams and want to practise pharmacy in Canada instead of America.If America is better than Canada, those Americans wouldn't have relocated to Canada.
@@MohamedMahmoud-xx6zx maybe only your field..as an engineer I know the pay difference between USA and Canada ..it's a joke ..if America is a little unsafe , ill happily take that for 4 times more pay and cheaper cost of living .groceries and rent in Vancouver are a joke
If you use net income or after tax income in the calculation, the Canadian data would look even worse due to high taxes.
Definitely, for the first set of numbers. The betterdwelling numbers are disposable income (after tax) though.
Especially on primary residence where the interest isn't tax ductable. In America, it is. Just another gate keeping canadian thing. I understand that it's tax free when selling but that just benefiting people who already have equity. And considering the amount you pay over a loan it more than the cost of purchase over 20 year amortization it really sucks.
new china lower income, houses are 5 times more expensive than USA.
If your gonna go that deep in the calculation you have to take into account theres offsetting factors to that. Those lower taxes in the US come with higher healthcare costs that arent covered, more tolls on the roads, and even in housing market things like HOA fees are much more common (in some states and cities) which is not on the ticket price of a home.
So lets stick to home to income ratio. Its bad enough. But if u start to disect deeper, then u have to look at the other side too, not cherry pick only what makes Canada look worse
If you use after tax income, then it is not as bad.
Why?
I used to do financing for farmers and business owners before I retired. Take the reported income, add back the personal expenses paid by the business paid, the non-cash expenses of the business, and you'd get the actual cash the cx was playing with. I regularly would qualify farmers reporting $10k in income for $1million dollar mortgages.. and that was using a stress-tested interest rate, not the lower actual rate the cx was paying
This is exactly why I hate when ppl say “It’s a global problem “ , “this is happening everywhere” . Like I understand home prices are increasing everywhere, but I’m sick of the gaslighting that there isn’t an inherent problem in the Canadian housing market that makes it WORSE than the global average
If you actually compare apples to apples it isnt really, NY and LA have very similar costs to Toronto and Vancouver. The US has a lot of really undesirable cities that pull their average costs down. That is not a good thing, its a result of poor public funding and lack of tax revenue.
@@BnMProductions11 You’re doing it again….
You’re NOT comparing apples to apples, have you checked the average income for New York ? The taxes on that income ? The cost of groceries, fuel , and medicine.
The strength of the American currency vs Canadian etc…
The density in NYC vs Toronto
You think America has a lot of undesirable cities ? Literally everyone in Canada wants to live in Toronto. And just a few in Vancouver.
That’s it, we have 2 semi desirable cities lol .
Even in our crappy cities like Niagara Falls , the average cost of housing is DOUBLE than in Niagara New York ….
isn't it? new china lower income, houses are 5 times more expensive than USA.
In Vancouver, the average salary is in between 40 and 60000 dollars.
Average house is 1.7 million. Average brand new 2 bedroom, tiny apartment.
In not good area is about one million.
According to statistics, you will have to make $250000.
For the bank to consider you.
Ask an OK resk.
That will mean that you and your wife. With top executive jobs.
Making a 120000 you will still fail short. That's why I'm teaming up with 2 other architects. Define better homes for retire. People in mexico
clever. new china lower income, houses are 5 times more expensive than USA. so, they want to move to other countries but they can't?
I'm not even that interested in Canada, but since I've found you, I watch at least every other video of yours. You give off a come, sit down, listen to this and forget about the world for a bit vibe 👍
That's some unique feedback, it means a lot!
It as always kind of like this. Housing was always 1.5x America..
Now it’s way worse it 2x to 3x! Will we ever be normal wtf is going on with this country it’s been slowly dying and haven’t seen a bounce back even once!
I love this channel! Such a beautiful and intelligent host❤Yes, Canada is way too expensive lately but i still love it!😊 Canada will soon be the greatest place to live and do business once again.
Love your optimism!! :)
The government in Indonesia🇮🇩 has a 1:3:5 policy. where for every one luxury house built by the developer. must also build 3 middle class houses(50-100m²) and 5 lower class houses(36m²).
(but this is still not enough because rich people still buy these cheap houses for Investment ).
so the central and regional governments also build cheap houses to sell to poor people.
and Mortgage interest subsidies for each first home purchased. created a deviation in the property market for houses and apartments measuring less than 36 m². it only has a price of 25% of a 54m² house.
As bad as America is printing money Canada is even worse making the Canadian dollar have less value furthermore taxes are higher in Canada so what is left to pay for a home is less. GST PST income tax and added taxes of fuel making everything more expensive. Add to the that the endless regulation to build a home and it equals disaster. Pretty much everyone I know under 60 either moved out of Canada or wants to leave. Makes zero sense to be in Canada now unless you love the rain and cold for 10 months of the year
Very insightful
Analisa yang bagus dan realistik
Im in a wheelchair. I been waiting for low income housing for years. Last I hear I’m getting up to the top of the list but that was last year. They can’t tell you where you are on the list because they don’t want you to get all excited. Or they don’t even know where exactly on the list you are…. Most likely that last one
What's happening in Canada ( especially Vancouver,Toronto ) is what's happened in southern California. Supply and demand, not enough new contruction, need for changes in community zoning laws to allow higher density housing units. Example Texas cities of Dallas & Houston combined construct more new homes than the entire state of California. Outside of Austin Tx, home prices are much much cheaper!
What I love about this woman is that she presented solutions at the end and brought in some positivity while the rest of videos like this leave it all doom & gloom.
You should be consistent in using the right kind of data when making comparisons; median house price versus median income, NOT average price versus median income. Average price can be skewed by very large and very small data points, whereas median is not affected by outliers.
Many people don't understand this difference, and doing wrong conclusions
Why didn't you use median house prices? Average house prices will be positively skewed. Though I doubt the story will change, Anyhow, great vid! Australia is going through the same problem.
The data on avg house prices is more widely available. Thanks!
new china lower income, houses are 5-10 times more expensive than USA. Australia and Canada just follow this path?
It's really hard nowadays. I've been searching for jobs. I remember getting my first job as a delivery driver. Now I only make less in a week.
Think it depends on the province?
My heart bleeds for the people starting out in life in Canada in 2024. What a meatgrinder with stacked odds.
The sad truth is homeowners love high house prices, so it probably won’t change… until renters are a clear majority of voters.
Using a media price to wage is asinine. First time home buyers in Canada paid $530,000 on average with a 7.6% down payment. Average 36. 62% of first timers in gta & gva bought condos instead of single family detached homes.
Constance Wu makes a good point here
not expensive as Zhongguo Shaghai and Beijing were 5-10 times more expensive than USA
Solutions: Earn more, save more, invest more, and HOPE that the federal and provincial governments actually/realistically try to meet new housing demands which were outlined not too long ago to bring demand and prices down. After all, it's critical that they meet the demand to lower prices for the greater good of the entire country AND if they want to keep their own jobs.. Brain drain and people just moving to more affordable areas is already a problem. If they care about how much they take in for taxes and if they truly want to control the national debt, they better work on it HARD. I'm hoping to be one of the people who will eventually be able to afford a piece of real estate if and when that HOPEFULLY happens. =) A good example of brain drain is the health care system where there is a shortage of doctor/nurses/specialists and millions of Canadians are without a family doctor. Of course, that's a whole other set of problems in that system, not just about housing.
And yes, VOTING would send a strong message to the current government.. (which I'm not a fan of..)
What’s the point of life anyway? If you can’t buy a house, get a good job, build good friendships, have hobbies, love your friends, family and S/O, and expand your knowledge, then there is no point in life. Life is meaningless.
You, I, we, humans are the one who BRING meaning into life. Life is meaning if we make it meaningful-that's not necessarily the results, but the journey. Cheers!
Most of the US is undesirable real estate in butt fuck nowhere mid west states. If you actually look at the cost of living in LA or NY compared to Toronto, it is fairly similar. Canada has fewer rundown old coal towns nobody wants to live in, even the rural areas are somewhat desirable because unlike the US, we pay taxes and public services aimed to keep towns in good shape actually function properly. Dont get me wrong, our housing prices are out of control, but it isnt a Canada exclusive issue. For anyone bitching about canadas housing costs, pointing to the US. Go actually drive through one of these old West Virginia towns or Iowa towns where you can get a 3 bedroom for $300,000 and tell me if you would actually want to live there.
That's totally not true. The US just has a more spread out economy with more tier 2 cities with great infrastructure but not overcrowded. Think of places like Cincinnati, Louisville, Indianapolis, San Antonio etc. My cousin bought an amazing 3 bed home (newly constructed) for 150,000 in San Antonio. The city has a lot of job opportunities.
@@saiyedakhtar3931 This may be true. But it also has a lot more real estate in old rundown towns with not enough tax revenue. Just go drive through most of the north east to mid central US. It's an absolute dumpster fire that simply does not exist in Canada. Small norther towns are still maintained and are desirable as cottage country because of Canada's landscape
@BnMProductions11 that is also true, but it's a sign of a more dynamic economy. Old uncooperative towns fade away while newer ones grow. It keeps the economy more spread out and property prices low. Most Americans move around and sell their homes after 5 to 10 years. Personally, I would have the American set up as it makes owning a home easier. Having an affordable place to live is a necessity, not an investment like in Canada.
@@saiyedakhtar3931 I would absolutely not argue that is a sign of a functioning economy. I would say its a symptom of unregulated capitalism as the rich come in, pillage what they can and then leave the ashes to the locals who cant leave
Don’t rely on the government to solve your housing affordability. You have to improve your wage earnings, budget and save a down payment, work on your credit score if needed.
It's a global issue. Don't know why everthing is still turning up side down years after the Covid.
The West is not the world. It's only 12% of the world. This is a very common mental impairment among people in Canada and other places in the West.
YES for voting (poilievre ;) )... There is nothing that can't be fixed if there is a political will... Chaging the zoning laws to be able to increase density; lower the insane level of immigration (for a bit ... hard as Canada is a immigration trap...) ... To me, it will be moving out of the country tho ;)
The Lieberal Govt of Justine Trudeau has opened the immigration gates, those new immigrant will need to be housed, thay thru hard work and pooling together their income like sharing in the mortgage among two families will compete with single families that have been in Canada for a long time.There will still be bidding wars for homes to come today and in the future.
not to mention its going up again
If I become Prime Minister of Canada, I will provide free houses for every citizen😊.
😂 oh canada . Single family home zoning. NIMBY . Old rich people have 4 houses as an investment.The fastest time Developer to get Permit building a new house is 1 year.
As bonus canada have justin trudeau😂. The woke of shame
Increase house prices
Was it me or did she get thrown all of that without mention Immigration.
Foreign buyer ban until 2027
Ever heard of equity?
You are wrong 10X Times
USA has different interest rates. USA can lock in a rate for 30 years. Canada can lock in at 10 years max, but most that do lock I choose 3-5 years and then start paying the going interest rate again. Income, capital gains, state taxes, luxury taxes, fuel prices, and purchasing power all different. Most low information comparison ever. Treating viewers like npcs.
Yeah voting for trudope gives you this. The sweet sweet CCP money is one of main reasons what why our housing is like this
Yes, it is true that Canada is more expensive than America, but it is safer, more secure and has better quality of life.I know many Americans who relocated to Canada.
@@Gloryboyquan Yes
The margin is not much ..but income disparity is ridiculous..on an average Canadians earn a third of what Americans earn for the same role .. groceries are more expensive and so is housing..just terrible
@@siddharthchilukur5287 I am studying for pharmacy exams in Canada and I know many American pharmacists who are studying for Canadian pharmacy exams and want to practise pharmacy in Canada instead of America.If America is better than Canada, those Americans wouldn't have relocated to Canada.
@@MohamedMahmoud-xx6zx maybe only your field..as an engineer I know the pay difference between USA and Canada ..it's a joke ..if America is a little unsafe , ill happily take that for 4 times more pay and cheaper cost of living .groceries and rent in Vancouver are a joke
Many more Canadians move to the US than vice versa
LOL Turkey has 902% nominal house price increase? I guess we do not have it so bad!
It does give some perspective!
Who the hell wants to live in fucking cold Canada cold like Eskimo
Can see your heart in your content but...are we worthy?