08-22-2020, 11:13 PM
(08-22-2020, 08:44 PM)ijmorlan Wrote: This is why Toronto house prices are so crazy. In most of the city it is illegal to build at a higher density than single-family houses. So the wealthiest people pay whatever they need for the existing houses and everybody else has to try to find apartments being built in the few places where higher density is permitted. Same thing in Vancouver, except to an even more absurd extent.
In particular, rent controls or other price controls cannot solve the problem; all they do is make it so that instead of needing to have lots of money, a prospective occupant needs connections, or a great resume, or be willing to pay a bribe (OK, that might imply lots of money, but it’s a complicated combination of money and willingness to engage with a corrupt system), or some such. Price controls cannot actually house more people, only construction can do that.
There has got to be more supply, yes. There are two things that people haven't really mentioned. It's not just a Toronto-Vancouver problem, it's a problem that is shared in many parts of the world (though not all; check out Quebec City prices for instance---but I think that's a demand issue).
The other thing is interest rates. They make the list price higher, though not monthly payments.
(08-22-2020, 08:46 PM)danbrotherston Wrote: Ultimately, Airbnb removes units from the local real estate market. It isn’t residents of KW which are renting Airbnb’s, therefore it reduces supply of housing for residents. Yes, I believe housing residents should take precedence over housing short term visitors.
Now, not all Airbnb’s are equal. A person renting a room in their home that they wouldn’t have otherwise is an increase in housing. But in some markets Airbnb has removed an astonishing number (like >25%) ouf units from the local housing market.
In KW airbnb probably isn't that much of an issue. I think it's more of an issue in places which actually get tourists and which should have hotels. But taxis and hotels have kind of had a monopoly on the market for a while. (Not that I think the sharing economy is always better, but these services clearly add competition).