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Originally Posted by opendoor
Regarding the "lowest # of housing units per capita in the G7", comparing Canada (median age of 41.8) to the 3 oldest countries in the world in Japan (median age of 48.6), Germany (47.8), and Italy (46.5) doesn't make a whole lot of sense given that kids don't buy or rent houses. Here's a slide from a presentation by BMO's Chief Economist which drives that home:
And France, which has by far the highest number of units per capita, and which has had basically stagnant population growth over the last decade, has seen property prices double in the last 10 years. There is clearly far, far more going on when basically the entire industrialized world with vast differences in population growth and immigration is all seeing huge increases in property prices. |
But it can’t just be interest rates either. Japan has had rock-bottom interest rates for almost 20 years now and we haven’t seen real estate prices climb like they have here. Same with most of Europe.
Housing prices climbed steeply all over the developed world in the last decade. But they’ve climbed much steeper in Canada’s major cities (and a handful of others like Sydney and Auckland) than elsewhere. The Economist has written stories singling out Canada’s housing bubble, because it’s recognized as being especially egregious. Why? What’s different about Toronto and Vancouver compared to Vienna and Osaka?
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Nevertheless, a comparison between Canada and other rich countries should give rise to some concern. Since 2000 the average house price has more than tripled in Canada; in America, by contrast, it is up by just about 60% (see chart). The median home in Canada costs ten times the median household income, the highest multiple since at least 1980. Within the oecd, a club of mainly rich countries, only New Zealand has seen house prices increase at a faster rate relative to incomes over the past two decades...
https://www.economist.com/finance-an...roperty-market
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