Guest
Hi, its been awhile. You know, I rarely go on camera anymore, but this video has become quite personal to me, and I feel like the best way I can tell this story is through a more personal medium. And this is the story of how canada has turned into a dystopian nightmare. This is the city of waterloo in ontario. You can think of it as the silicon valley of canada. Blackberry’s headquarters were here. 2 well known universities are located within a about 2 kilometers of one another. And over there was where I used to live when I went to school in the area in 2016. I had a 1 bedroom, 1 bathroom, 512 square foot apartment. The cost of rent? $900 a month including internet, electricity, and water. However, earlier this year, I took a look that apartment that I lived in 7 years ago and saw that it was being rented out for about $2000 a month. Essentially, the rent of this place had gone up 122% over the course of 7 years. An average increase in rent of about 17.4% per year for almost a decade. If you were to view this rental property as a rental income investment, it would be very comparable to the returns that ponzi schemes would see, like what Bernie Madoff was doing in New York before he was sentenced to 150 years in prison. Except, this apartment isn’t apart of a ponzi scheme. Its just the new Canada. You see, my one anecdotal story is not exactly an outlier for the average rental price in canada. In 2015, the average canadian paid $1172 in rent, and today, 8 years later, that number has jumped to $2289. Essentially if you invested in the rental real estate market in 2015, you ended up walking into an investment return that outpaced the best returns from the largest hedge funds in the world. And obviously, its not just rental prices that Canada has seen skyrocket, its the sale prices too. In 2011, the average sale price of a house in canada was $348,000. 12 years later, prices have more than doubled to $709,000. In Toronto, the average house went from $500,000 in 2013, all the way up to 1.3 million in 2023. In fact, if you were to look at what a $200,000 gets you in other major cities like london england. You’ll see that you can get a pretty nice 2 bedroom apartment. But in toronto, $200,000 gets you…a parking space. You heard that right. Welcome to Canada. In fact, the average 1 bedroom, 500 square foot apartment in toronto is currently going for $550,000 canadian. It is prices like these that have given toronto canada, the title of ‘the biggest housing bubble in the world’. Now even though, toronto is canada’s largest city, it doesn’t represent all of canada. But this does. The average monthly mortgage on a new home purchase in 2015 was about $1400. Today what do you think that number is? Is it up 50% in 7 years? 100%? Well let me tell you friends, if it was only 100%, that would've been great. The average monthly mortgage on a new home purchase today is approaching $3500 in Canada. And when you consider that the median household income after taxes brings in around $5000 a month, you can see why there is a mortgage crisis going on right now in the country as well. But thats only just the surface of the story. I dug a little deeper to find out why this housing crisis was going on. And a key reason why there’s a housing crisis in Canada is because of a housing shortage. One story that popped out to me was how there was a proposal to bring in 4,690 housing units in the city of Mississauga ontario, a city with about 825,000 people that has been hit especially hard by this housing crisis. The proposal was going to build a few high rises along with an entire neighborhood of townhomes and detached houses. However, the homeowners and the city council shot this proposal down citing things like not wanting to live in a congested area, or a construction site for a few years, and also, having too many shadows cast upon the surrounding area. And to be honest, I understand where this thought process was coming from. If i’d spent my life savings to buy a house in a more quiet neighborhood, I wouldnt want it to turn into a congested and noisy nightmare either. But this was just one example of many rejections that would having helped fixed canadas housing shortage. 2nd Channel: My Game Dev Channel: Want some Advice? Ask Me on Reddit! Personal: On Tik Tok: @jackchapple On Reddit: On Instagram! On Twitter! On Facebook! CONTACT: jackchapplevideo@ OR (even better, and more likely to get to me): Send me a tweet or instagram DM. Podcast:
