Well they set their own conditions which was based on getting rid of the last person. Mission accomplished earlier than planned though.
Not sure where you get that housing isn’t an issue anymore.
Liberal Minority Government 2025 - ???
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Jarnhamar
Army.ca Myth
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The minister of housing doesn't think the price of housing needs to come down. That tells me it's fine and not an issue.
Okie dokie then.
If that is what makes you think it’s settled. And if you think they won’t do anything at all on housing.
The rest of us will carry on. Considering he added more to that with more context.
Halifax Tar
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I find it interesting that he wants to add more houses to the market and not lower the price.
I will be interested to see how this plays out.
daftandbarmy
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There's probably nothing he can do about it anyways. Economic forces will likely influence a big upswing in housing prices...
The Scale of the Wealth Transfer
The numbers are staggering. A 2023 report by Chartered Professional Accountants of Canada estimated that a massive $1 trillion is expected to change hands between Canadian baby boomers and their children between 2023 and 2026. A significant portion of this wealth is tied to real estate. Many baby boomers have benefited from decades of rising property values, making their homes substantial assets to pass on.Keith Willoughby from the Edwards School of Business at the University of Saskatchewan aptly describes this as a "trillion-dollar tsunami" poised to impact the nation. This phenomenon is particularly evident in major urban centers like Toronto and Vancouver, where property values have seen the most dramatic increases. However, this trend is also noticeable in provinces like Saskatchewan, indicating a widespread national impact.
Impact on the Housing Market
One of the most direct impacts of this wealth transfer is on the housing market. As younger generations receive inheritances or gifts, a portion of these funds is being channeled back into real estate. This can take the form of direct down payments on homes or using gifted funds to purchase property outright.This influx of capital into the housing market occurs at a time when Canada is already facing a housing shortage. With limited housing supply, increased demand driven by wealth transfer is likely to exert upward pressure on home prices. Economist Willoughby points out that if the supply of homes doesn't increase to meet this new demand, the natural outcome will be a rise in equilibrium prices across the housing market, including single-family homes, condos, and recreational properties.
Data from CIBC highlights this trend. In 2024, 31 percent of first-time homebuyers in Canada received financial assistance from family members to purchase a home, a significant increase from 20 percent in 2015. This demonstrates the growing reliance on family wealth for entering the housing market. Furthermore, the average value of these financial gifts has surged, jumping from $66,000 in 2019 to $115,000 in 2024. This substantial increase in both the prevalence and size of gifts underscores the significant role that wealth transfer plays in facilitating homeownership for younger Canadians.
The $1 Trillion Wave: How Intergenerational Wealth Transfer is Reshaping Canadian Real Estate
Explore Canada's trillion-dollar wealth transfer from baby boomers to Millennials and Gen X, and its impact on real estate and homeownership trends.
www.kelownarealestate.com
Jarnhamar
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$120,000 down payments on homes in Vancouver and Toronto. Maybe more homes will mean home prices drop.
PrairieFella
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Supply and demand does have a part to play.
IKnowNothing
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Would you happen to have Willoughby's actual work on the subject? Quotes for blog post don't tell the whole story, but I think he's failing to account for a significant portion of the wealth transfer coming not in the form of disposable funds, but in now vacant housing stock.There's probably nothing he can do about it anyways. Economic forces will likely influence a big upswing in housing prices...
The Scale of the Wealth Transfer
The numbers are staggering. A 2023 report by Chartered Professional Accountants of Canada estimated that a massive $1 trillion is expected to change hands between Canadian baby boomers and their children between 2023 and 2026. A significant portion of this wealth is tied to real estate. Many baby boomers have benefited from decades of rising property values, making their homes substantial assets to pass on.
Keith Willoughby from the Edwards School of Business at the University of Saskatchewan aptly describes this as a "trillion-dollar tsunami" poised to impact the nation. This phenomenon is particularly evident in major urban centers like Toronto and Vancouver, where property values have seen the most dramatic increases. However, this trend is also noticeable in provinces like Saskatchewan, indicating a widespread national impact.
Impact on the Housing Market
One of the most direct impacts of this wealth transfer is on the housing market. As younger generations receive inheritances or gifts, a portion of these funds is being channeled back into real estate. This can take the form of direct down payments on homes or using gifted funds to purchase property outright.
This influx of capital into the housing market occurs at a time when Canada is already facing a housing shortage. With limited housing supply, increased demand driven by wealth transfer is likely to exert upward pressure on home prices. Economist Willoughby points out that if the supply of homes doesn't increase to meet this new demand, the natural outcome will be a rise in equilibrium prices across the housing market, including single-family homes, condos, and recreational properties.
Data from CIBC highlights this trend. In 2024, 31 percent of first-time homebuyers in Canada received financial assistance from family members to purchase a home, a significant increase from 20 percent in 2015. This demonstrates the growing reliance on family wealth for entering the housing market. Furthermore, the average value of these financial gifts has surged, jumping from $66,000 in 2019 to $115,000 in 2024. This substantial increase in both the prevalence and size of gifts underscores the significant role that wealth transfer plays in facilitating homeownership for younger Canadians.
The $1 Trillion Wave: How Intergenerational Wealth Transfer is Reshaping Canadian Real Estate
Explore Canada's trillion-dollar wealth transfer from baby boomers to Millennials and Gen X, and its impact on real estate and homeownership trends.
Jarnhamar
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Of course. The Liberals will just need about 5 years for the plan to work eh
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More homes of the right type. We don't need to build three story 3000sqft monstrosities. What we need are 1000-1500sqft homes that people starting out, and people downsizing can move into.
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Halifax Tar
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Supply and demand... So if I build more (enough) homes, it should lower the prices. But I don't want the prices to go down....
Sounds to me like he wants to have his cake and eat it too.
He didn’t say he didn’t want prices to go down.
Possibly. Sounds more like he thinks more affordable homes need to be built if we go by the entirety of what he said.
Not sure why anyone is against that.
I certainly don’t want my home value to go down though.
IKnowNothing
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It's a very narrow path, but is possible. Have to thread an absolute needle with increased supply preventing wage growth from causing price inflation, leading to the real cost of housing declining while the nominal price of home stays constant.
Alternatively, and admittedly putting words in his mouth- it may be possible to increase rental housing supply such that their are housing options that become more affordable, while actual houses don't become cheaper.
Or trying to do both at the same time.
Halifax Tar
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I'm no Milt Friedman but my understanding is that if you add more housing the market it should bring down the prices. Supply outpacing demand, in laymen's terms.
Shouldn't lowering the prices be as much of the goal as building more anyways ?
daftandbarmy
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That's how they want you to think supply and demand works, because it's easy to understand in a short sound bite on TV uttered by a new politician with beautiful hair and a lousy track record with housing, but it doesn't always work that way.
It might take 40 years to increase housing supply in Canada to the point where prices drop, if ever. But this is not a good message to share with a public who just voted you into a thin majority for a couple of years.
How Does the Law of Supply and Demand Affect Prices?
While the laws of supply and demand act as a general guide to free markets, they are not the sole factors that affect pricing and availability. These principles are merely spokes of a much larger wheel. While extremely influential, they assume that consumers are fully educated about a product and that there are no regulatory barriers to getting that product to them.
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How Does the Law of Supply and Demand Affect Prices?
Learn how the law of supply and demand affects prices, whether supply remains the same and demand increases or vice-versa, plus the exceptions to the rule.
The key I think is to have a stable market. And have affordable entry points being either rental or purchase.
IKnowNothing
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Re my point 1- the real price would be brought down, just not the nominal price.
Re my point 2- People being able to get into a 800 sqft 2 2BR rental more affordably is unlikely to have a major impact on the supply/demand relationship on a 2500sqft $800k
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This is a catch-22. Because we treat housing as an investment. If prices comes down substantially, it will affect people's bottom lines. Not the rich but regular people especially in high price areas. Is there the political will to have people lose potentially large sums of their home equity.
What we need is affordable housing. Remember post war the houses were 600-900 sq ft and manufactured kits.
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