Both the housing dilemma and the rental dilemma - two problems connected at the hip - have the same solution: an increase in supply. And in time, so long as there is no government interference designed to spare the market from bubbles that grow too large and pop on their own, the system will re-balance and recover.
Every five years, statisticians, analysts and economists eagerly await the slow release of Census data by Statistics Canada. In early February the population and dwelling count tables were released. The figures that immediately caught the attention of the public was the difference between the total dwellings and dwellings "occupied by usual residents."
Perhaps it's time to think about what current housing statistics mean to future home buyers. What it means for our children. Like many in my generation, I have enjoyed the warm glow of the rising market, with little regard for the darker, colder market we are creating for the next generation. I've cheered the price increases on my street, and celebrated the theoretical boost to my bottom line.
If you're lucky enough to own a small slice of the GTA's pricey property pie, you could find yourself among those vehemently opposed to any new development in their neighbourhood. After all, established Toronto hot spots like The Annex, Bloor West Village and Mount Pleasant are full, right? But here's the problem.
Housing markets in Toronto and Vancouver are extremely hot, and average prices are skyrocketing. Every new data release, real estate report, and housing related comment is scrutinized, debated and analyzed in painstaking detail. A red flag is raised, an alarm bell is sounded, a stern warning is issued or extreme caution is urged by both domestic and international housing analysts and economists almost daily. How does this end?