Canada's home ownership crisis is likely to worsen over the next few years as proposed project sales languish at historically low levels, stalling the funding needed for construction, half a dozen economists and realtors told Reuters.
The sale of these proposed projects, comprising an array of one- or two-bedroom condominiums in major hubs like Toronto, is commonly called pre-construction sales, and a bulk of these properties are usually bought by investors to rent out.
Many Canadians have been priced out of home ownership since interest rates started rising two years ago, and even with falling rates and relaxed mortgage rules more recently non-investor buyers have struggled.
"If you think moms and dads with strollers are lining up at condo projects to buy 500-square-foot condominiums, they are not," said John Pasalis, president of Realosophy Realty, a Toronto-based real estate brokerage.
There is no official data on pre-construction sales and it is largely sourced by realtors and economists from market transactions.
Until now, investors had fuelled a construction boom in major cities. But economists and realtors said they were largely staying away from the market for a host of reasons: high mortgage costs, lower prospect of capital appreciation, slower increases in rent and looming uncertainty in the housing market over how much interest rates will fall and if government measures will help.
Once a threshold of between 50 per cent and 70 per cent of a property is sold, a lender agrees to fund builders to start construction.
Canada's home ownership crisis is one of the primary factors that has tanked Prime Minister Justin Trudeau's approval ratings.
Trudeau's Liberal party introduced a raft of measures in its efforts to fix the crisis but it has failed to encourage builders to build more homes, government data showed.
A drop in pre-sales indicates the start of construction of projects will fall in the coming months, crimping supply over the years desperately needed to absorb a rising demand, said Robert Hogue, housing economist at RBC.
"We are not going to balance the market for ownership in the next four or five years," he said, adding this could exacerbate the ongoing demand-supply mismatch responsible for the housing crisis in Canada.
Earlier this month, the government changed one of its rules on mortgage payments, allowing first-time buyers or people purchasing a newly built home to take loans with 30-year amortizations, instead of 25 years.
But critics say it might not encourage builders to start construction as investors would still stay away from the market as the cheapest mortgage rate - a five-year fixed rate - may not change much despite four rounds of rate cuts.
Besides that, increasing supply in the market, especially in the Toronto region, dampened investors' hopes of future capital appreciation.
Despite a government push to keep population growth in check by clamping down on immigration, Hogue said the growth rate will still be too strong and demand will continue.
According to federal housing agency CMHC's Housing Supply Report from last month where it cites an independent study, new condominium sales were down more than half in the first six months of 2024 than in the same period a year ago.
Aled ab Iorwerth, deputy chief economist at CMHC, who co-authored the report said there are many developers who need money to start planned condo projects.
"Building these large condominium structures is quite difficult these days," he said.
(Reporting by Promit Mukherjee; Editing by Caroline Stauffer and Aurora Ellis)
Canada's home ownership crisis is likely to worsen over the next few years as proposed project sales languish at historically low levels, stalling the funding needed for construction, half a dozen economists and realtors told Reuters.
The Canada Revenue Agency extended a reporting exemption it introduced years ago. Bare trusts will not require the submission of a T3 Return or Schedule 15 for the 2024 tax year.
There appears to be an end in sight for the strange predicament of a B.C. woman who was being paid by the federal government for a job she was hired for but never actually did.
On U.S. election day, CTVNews.ca will feature live results on an interactive map and a live blog that will be updated throughout the evening starting at 5 p.m. ET by 麻豆影视 journalists and Washington political analyst Eric Ham.
The Canadian dollar is trading against the U.S. dollar at levels not seen since 2020 as the combined pressures of economic outlooks, elections, and energy prices weigh. Here's what you need to know.
The situation facing out-of-town Taylor Swift fans now may be even worse, with some hotel rooms and short-term rentals in Toronto and Vancouver on show weekends costing 10 times more than other weekends.
Dodgers win World Series in 5 games, overcome 5-run deficit with help of errors to beat Yankees 7-6
With Halloween nigh people gravitate toward fear even in a complex and sometimes scary world. Here are some favorites 鈥 lore and fiction, with maybe some truth sprinkled throughout 鈥 that The Associated Press gathered from its journalists around the planet:
Actor Lucas Bravo has some notes about his 鈥淓mily in Paris鈥 character.
The owner of a pair of teardown homes in Vancouver's rapidly redeveloping Oakridge neighbourhood has been ordered to refund a would-be buyer's deposit of $1.5 million.
Junior Henry says he was shot by a Taser in his bedroom all because police got the wrong home in Brampton, Ont.
A South Frontenac Township man is facing charges, including impaired operation causing death, in connection to a boat crash that killed three people on Bobs Lake in eastern Ontario over the Victoria Day long weekend.
The mother of a 17-year-old victim in a mass slaying in Manitoba is suing a child welfare agency for allegedly failing to protect the girl.
The situation facing out-of-town Taylor Swift fans now may be even worse, with some hotel rooms and short-term rentals in Toronto and Vancouver on show weekends costing 10 times more than other weekends.
The Canada Revenue Agency extended a reporting exemption it introduced years ago. Bare trusts will not require the submission of a T3 Return or Schedule 15 for the 2024 tax year.
Russian forces struck a residential building in Ukraine's second-largest city of Kharkiv early Thursday, killing a 12-year-old boy and injuring scores of others.
Donald Trump walked down the steps of the Boeing 757 that bears his name, walked across a rain-soaked tarmac and, after twice missing the handle, climbed into the passenger seat of a white garbage truck that also carried his name.
Authorities in Taiwan are warning residents to brace for the impacts super typhoon Kong-rey, which has rapidly intensified to super-typhoon strength.
North Korea test-launched a suspected long-range missile designed to strike the continental U.S. on Thursday, South Korea鈥檚 military said, as the United States warned that North Korean troops in Russian uniforms are heading toward Ukraine in a likely move to augment Russian forces and join the war.
Argentina鈥檚 President Javier Milei on Wednesday dismissed his foreign affairs minister hours after the country voted in favour of lifting the U.S. economic embargo of Cuba at the U.N. General Assembly.
The Washington Post, Los Angeles Times and USA Today may have declined to endorse a candidate in this year鈥檚 presidential election. But former President Donald Trump doesn鈥檛 see it that way.
The parliamentary budget officer says if the federal government wants to meet NATO's military spending target by 2032 as promised, it will have to almost double defence spending to $81.9 billion.
Prime Minister Justin Trudeau faced his caucus for the first time Wednesday since rebuffing calls from two dozen Liberals to resign. He seemed to satiate some MPs鈥 concerns, with a presentation on party campaign strategy that includes rolling out new ads.
Jagmeet Singh says the NDP will not support the Bloc Qu茅b茅cois and Conservative leaders to help them bring down the Liberal government.
A team at London Health Sciences Centre Research Institute (LHSCRI) is the first in Canada to treat a neuroendocrine tumours cancer patient using an innovative treatment.
H5N1 bird flu has been identified in a pig in the United States for the first time, the U.S. Department of Agriculture said Wednesday.
One of three major tobacco companies involved in years of negotiations with creditors says it opposes the proposed multi-billion-dollar settlement announced in the case earlier this month.
Scientists in Argentina have discovered the oldest-known fossil of a giant tadpole that wriggled around over 160 million years ago.
In a surprising discovery, Bristol Zoo's conservation team captured night vision footage of a 'mysterious' creature on zoo grounds.
Archeologists in Cambodia have unearthed a dozen centuries-old sandstone statues in a "remarkable discovery" at the Angkor World Heritage Site near the city of Siem Reap, authorities said Wednesday.
The situation facing out-of-town Taylor Swift fans now may be even worse, with some hotel rooms and short-term rentals in Toronto and Vancouver on show weekends costing 10 times more than other weekends.
Olivia Rodrigo has had a big world tour that she said has been fun - despite an accident that made headlines.
The bright lights of Hollywood have lost some of their lustre as the film industry struggles to find its footing in an era of streaming and following a period of extended labour strife. The slowdown also extends to Hollywood North.
Canada's home ownership crisis is likely to worsen over the next few years as proposed project sales languish at historically low levels, stalling the funding needed for construction, half a dozen economists and realtors told Reuters.
Statistics Canada is set to publish its August gross domestic product report, which will include an early estimate for economic growth in the third quarter.
Chipotle customers have complained that portion sizes are all over the map. The company finally has a solution 鈥 'consistent and generous portions.'
Two cute, fluffy alpacas brought a smile to commuters鈥 faces Wednesday morning as they rode the GO Train from Scarborough to Union Station in advance of the Royal Agricultural Winter Fair, which kicks off this weekend.
Starting next week, Starbucks customers will no longer pay more for this add-on for their orders.
A 114-year-old Pennsylvania woman is now believed to be the oldest living person in North America.
Yeji Kwon's life is unusual, but she wouldn't trade it for anything.
Dodgers win World Series in 5 games, overcome 5-run deficit with help of errors to beat Yankees 7-6
The Toronto Maple Leafs have dealt defenceman Timothy Liljegren to the San Jose Sharks for defenceman Matt Benning, a third-round draft pick in 2025 and a sixth-round pick in 2026.
Volkswagen has informed employee representatives that it wants to close at least three plants in Germany, the head of the company's works council said Monday.
A 17-year-old Ottawa driver was caught speeding nearly 90 km/h over the speed limit on Highway 417.
Based on initial appearances, there are signs indicating the automobile industry is in healthy shape 鈥 for now.
A Halifax junk remover shares some of his company鈥檚 strangest discoveries.
When Leah arrived at work directing traffic around a construction site, she never expected to see a van painted in all sorts of bright colours, and covered in eclectic decorations, including a stuffed moose attached to its roof.
After 14 years of repairing and selling bicycles out of the garage of her home, a Guelph, Ont. woman鈥檚 efforts have ended 鈥 for now, at least.
Epcor says it has removed more than 20,000 goldfish from an Edmonton stormwater pond.
Witches and warlocks have been flocking to New Brunswick waterways this month, as a new Halloween tradition ripples across the province.
New Brunswicker Jillea Godin鈥檚 elaborate cosplay pieces attract thousands to her online accounts, as well as requests from celebrities for their own pieces.
A new resident at a Manitoba animal rescue has waddled her way into people's hearts.
Hundreds of people ran to the music of German composer and pianist Beethoven Wednesday night in a unique race in Halifax.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
With Americans set to elect a new president Tuesday, new data shows there's a spike in interest in Canadian real estate.
Rehab after suffering a stroke or experiencing another debilitating condition can be gruelling, but Fraser Health has two new robotic tools it hopes can improve patient outcomes.
The owner of a pair of teardown homes in Vancouver's rapidly redeveloping Oakridge neighbourhood has been ordered to refund a would-be buyer's deposit of $1.5 million.
Three Ontarians said they waited months to get paid for the tickets they sold on StubHub.
Eight people were injured after a pickup truck collided with a TTC bus in North York overnight.
Junior Henry says he was shot by a Taser in his bedroom all because police got the wrong home in Brampton, Ont.
The Alberta government is looking to increase oversight of the child-care sector.
A Calgary Uber driver is alerting others about a racially motivated incident that occurred in his vehicle last month, following a pick-up of a passenger. It was all caught on camera.
A decision about whether to close the Supervised Consumption Site (SCS) in Calgary's Beltline is back in the hands of the Alberta government.
As of Oct. 31, all eligible grocery and big-box stores are able to buy beer, cider, wine and ready-to-drink beverages, including large pack sizes. The Ontario government says an additional 400 grocery stores will be selling alcohol across the province.
The westbound lanes of Hwy. 401 are closed between Joyceville Road and Highway 15 in the Kingston area following a crash.
Environment Canada's forecast calls for a high of 23 C today, which would break the record for the warmest Oct. 31 in Ottawa's history. The record for warmest Oct. 31 in Ottawa is 21.3 C set back in 2003.
A new survey shows most people don't feel safe in Montreal's Village and believe the situation in one of the city's most vibrant neighbourhoods has only gotten worse in recent years.
Don鈥檛 know what to do with the pumpkin you spent hours painstakingly carving into a goofy face or terrifying monster after Halloween? The Outremont pumpkin parade is there to give them a second life on Nov. 1.
Maxime Pedneaud-Jobin is about to take on a new professional challenge.
The Alberta government is looking to increase oversight of the child-care sector.
Hundreds of pages of documents detailing potential asbestos exposures at Edmonton鈥檚 largest school division reveal human error led to more than a dozen worker exposures last year.
As Edmonton's population booms, so has demand on the city's transit system.
The lawyer for a homeless man who died at a Halifax encampment is arguing in court today that his client's welfare payments should have been as high as those received by people with permanent housing.
A cyclist was hospitalized with serious injuries after a vehicle crash in Halifax on Wednesday.
Famed Canadian singer Sarah McLachlan is postponing her 30th Anniversary tour of 鈥淔umbling Towards Ecstasy鈥 due to health concerns.
When the main roads are backed up, some drivers turn to back lanes to bypass traffic. However, residents who live in the city鈥檚 East Kildonan neighbourhood say they鈥檙e fed up with the makeshift detours down their alleyway.
The mother of a 17-year-old victim in a mass slaying in Manitoba is suing a child welfare agency for allegedly failing to protect the girl.
Obby Khan and Wally Daudrich, the two candidates for the leadership of Manitoba's Opposition Progressive Conservatives, made their respective pitches to members Wednesday night at a forum hosted by the party.
Here's a look at the candidates for Ward 1 ahead Regina's civic election on November 13.
The Saskatchewan Party has avoided being swept off the map by the NDP in Saskatoon with 麻豆影视 confirming that Ken Cheveldayoff has been re-elected in Saskatoon Willowgrove.
Halloween is a time for many to share ghost stories and explore haunted houses, but for one Saskatchewan man, it's spooky season all year round.
One person has died after police say a wheel detached from a vehicle, causing a crash in the eastbound lanes of the 401 near Cambridge.
Kaitlyn Braun, the woman who pleaded guilty to defrauding numerous doulas last year, has pleaded guilty to four additional charges.
The Kitchener-Waterloo Symphony鈥檚 board of directors says the association has bounced back from bankruptcy.
Delegates from 74 Saskatchewan First Nations head to the polls on Thursday to elect a new chief of the Federation of Sovereign Indigenous Nations (FSIN).
Halloween is a time for many to share ghost stories and explore haunted houses, but for one Saskatchewan man, it's spooky season all year round.
A 9-year-old Saskatoon boy is taking on a project to help the city鈥檚 homeless. It started out with a lot of work collecting recycled cans and bottles, it has turned into a labour of love.
A 33-year-old mother climbed over a safety rail and intentionally went over Niagara Falls with her two children, a 9-year-old and 5-month-old, according to New York state police, who said Wednesday that search and rescue efforts were unsuccessful.
Towns and municipalities in northern Ontario are concerned about the increased costs of Ontario Provincial Police services.
Environment Canada issued weather alerts Wednesday in anticipation of severe thunderstorms, heavy rain the first accumulating snowfall of the season in the northeast with up to 10 cm expected.
A mix of sun and cloud will start the day off with winds picking up to about 60 km/h with the chance for showers into the early afternoon and evening.
London Health Sciences Centre (LHSC) is being investigated by London Police Service, who LHSC confirmed on Wednesday are looking into 鈥榩ast financial practices.鈥
On Wednesday morning Nicholas Burtch, 36, entered a guilty plea at the Simcoe Courthouse to a charge related to failing to stop at the scene of a collision causing death. The 14-year-old boy, whose identity has been protected by the courts, was struck by a pick-up truck.
The family of a gas station worker who was killed earlier this month in Amaranth is pleading for help in finding the person responsible for his murder.
A woman claiming Lauriston and Amber Maloney exploited her while she lived and worked for the Essa Township couple continued her testimony on Wednesday, telling the court she was controlled for years.
Culvert replacement is on schedule to begin November 4 and finish December 13.
If she can dream it, Dora Strelkova can likely make it a reality 鈥 as long as there鈥檚 a 3D printer nearby.
Local judge, Justice Maria Carroccia, has ruled previous conduct will be considered when it comes to her final judgement in a Windsor terrorism trial.
Essex County OPP arrested a Windsor man after recovering $300,000 in stolen property, including 11 vehicles.
There appears to be an end in sight for the strange predicament of a B.C. woman who was being paid by the federal government for a job she was hired for but never actually did.
Three people were found dead after a fire tore through a rental home on Vancouver Island earlier this week. Investigators believe one of the victims initially escaped the blaze, but ran back inside to rescue others before he succumbed to smoke inhalation.
The bright lights of Hollywood have lost some of their lustre as the film industry struggles to find its footing in an era of streaming and following a period of extended labour strife. The slowdown also extends to Hollywood North.
More than two years after Alannah Brown and Douglas Barker were found dead north of Penticton, police are asking for help identifying a vehicle they believe was associated with the crime.
Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Parks Canada and the Blackfoot Confederacy have announced a new collaboration.
A Lethbridge police officer faces multiple charges in relation to an off-duty domestic incident.
According to the last Alberta crop report of 2024, 99.9 percent of crops in the south region have been harvested.
From Jan.1-Oct. 20, Ontario Provincial Police officers laid 95 impaired charges on Manitoulin Island, compared to 93 in all of 2023.
A Goulais River man has been charged with impaired driving and entering a premises without permission after he pulled into a driveway he thought was his and argued with the homeowner.
Environment Canada issued weather alerts Wednesday in anticipation of severe thunderstorms, heavy rain the first accumulating snowfall of the season in the northeast with up to 10 cm expected.
Newfoundland and Labrador's auditor general has issued a warning about the province's financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.
Police in Newfoundland and Labrador have charged an off-duty RCMP officer for allegedly driving while impaired, following a crash on Sunday.
The human remains recovered off Placentia Bay, N.L., earlier this month have been identified as the coast guard employee who went missing at sea in September.
The Shopping Trends team is independent of the journalists at 麻豆影视. We may earn a commission when you use our links to shop.聽Read about us.
