There is presently a vicious crisis concerning affordable housing in Canada. While experts say we shouldn’t spend more than 30% of our income on housing, there are thousands of struggling Canadians spending more than half their income on rent.
Iqbal Singh is in the real estate industry from the past 15 years, he says, the hidden reasons for inflation within the housing cost rising drastically is from the increase of investments from foreign countries.
“The foreign investments have created the rising cost within the market due to the past low prices and affordability.”- Iqbal Singh
What makes this issue even worse is that it’s effect doesn’t end at housing. For those who live off minimum wage, it becomes almost impossible to maintain their budgets as most of their income is going towards paying rent . Singh says there is no guarantee of stabilized costs in near future.
“The cost will never be completely stable because of the constant demand available. The rate of interest, the employment rate and income are factors that continue to destabilize the costs for the future.”-Iqbal Singh
Many Londoners expressed their concerns about affordable housing crises in the city and feel that the government should intervene immediately and help the lower income families in a better way.
“If the government stops ripping everybody off so much of the money, then we probably will be able to afford a house one day.”- Londoner
“Obviously we have too much homeless going on right now and it’s really unnecessary, the government need to do more about it.”
CC/ instagram page, homelessness in London On
“Government should make more affordable housing for lower income families to help make their lives better, the finance seems to be going everywhere else except for families who are in need to be helped.”
Change in the perception of buyer & seller
The change in perception for the buyer in today’s environment is the thought of receiving a lower price.The lower prices that they are being offered is due to the higher rate of interest and the abundance of houses on sale.
The change in perception for the seller has completely changed – they are afraid of a higher rate of interest impacting their house being sold. The stricter policies being implement for selling and buying have also created a sense of fear for the seller.
Jivtesh Dhillon a finance student at western university feels the main reason behind housing crises is increasing foreign population.
“When they come here the demand for houses increase drastically, people who own houses right now realize that and raise their prices and rents and immigrants coming from different countries they don’t necessary have financial means to afford accommodation.”- Jivtesh Dhillon
He feels the government should intervene and take required measures as the crises is one of the main reasons of increasing homelessness in the city.
“Basically what the government should do is to just provide subsidy to such people so that they have enough money to purchase houses.”- Jivtesh Dhillon
All in all, the future expansion of the housing business has a large scope in today’s environment. Each year there are over 300,000 immigrants that move into Canada and approximately 500,000 students that look to begin there future here.
70% of students are likely to stay in Canada after completing their education to create a future living for themselves. With the growing population of students and families the future expansion of the housing market is and will continue to constantly grow with the heavy demand.
