11-06-2015, 10:59 AM
"Should they "encourage" developers to include some more modest, lower cost accommodation options among their grandiose luxury offerings? "
I always have to laugh at this line of thinking... do you really think it's the granite counter tops and stainless steel appliances that add all the cost? The reality is the 'premium' fit and finish added to most condos likely only adds ~$5k incremental cost per unit (compared to more basic fit and finish) when you factor in the wholesale prices developers have to pay. Here's the reality: Building accommodations for humans to live in is not cheap - the cost of labor, materials, and building things up to today's code - the premium fit and finish is simply to justify the prices required to build the basics of the accommodation in the first place (the structure, heat, electricity, plumbing, windows, drywall, flooring, fixtures, kitchen, appliances, etc... never mind the environmental cleanup that is required half the time in Kitchener!)
So sure - it's unfortunate the the price of housing is going up - but that's not the fault of developers or politicians - that's just a fact of life. A 100 year old home in downtown Kitchener is at least $300k these days - if a landlord were to purchase a house for that price and rent it out the rent would have to be enough to cover the mortgage payment - which is going to be the same amount as a $300k condo. The only 'affordable' housing that exists today are run-down hole in the wall rental units that are not fit for human habitation - the only reason they are 'affordable' is because they are being run by slum lords who don't bother to invest a dime upgrading them (probably because they're hoping for a developer to come a long and buy them out) and guess what: If they invested the money to upgrade the units and bring them up to par with today's standards it would cost so much money that they would have to charge the same rents that these new condo's will be rented for anyways.
I always have to laugh at this line of thinking... do you really think it's the granite counter tops and stainless steel appliances that add all the cost? The reality is the 'premium' fit and finish added to most condos likely only adds ~$5k incremental cost per unit (compared to more basic fit and finish) when you factor in the wholesale prices developers have to pay. Here's the reality: Building accommodations for humans to live in is not cheap - the cost of labor, materials, and building things up to today's code - the premium fit and finish is simply to justify the prices required to build the basics of the accommodation in the first place (the structure, heat, electricity, plumbing, windows, drywall, flooring, fixtures, kitchen, appliances, etc... never mind the environmental cleanup that is required half the time in Kitchener!)
So sure - it's unfortunate the the price of housing is going up - but that's not the fault of developers or politicians - that's just a fact of life. A 100 year old home in downtown Kitchener is at least $300k these days - if a landlord were to purchase a house for that price and rent it out the rent would have to be enough to cover the mortgage payment - which is going to be the same amount as a $300k condo. The only 'affordable' housing that exists today are run-down hole in the wall rental units that are not fit for human habitation - the only reason they are 'affordable' is because they are being run by slum lords who don't bother to invest a dime upgrading them (probably because they're hoping for a developer to come a long and buy them out) and guess what: If they invested the money to upgrade the units and bring them up to par with today's standards it would cost so much money that they would have to charge the same rents that these new condo's will be rented for anyways.