Jan 26, 2566 BE — Canada's housing market has gone from bad to worse in most major cities — and it's driving young people away in droves, writes columnist Max ...
Posthaste: Canada is becoming unaffordable for a majority ...
Oct 14, 2565 BE — The most unaffordable cities in Canada were Vancouver and Toronto, found a study by RBC Economics. Photo by Chris Helgren / ...
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I have been seeing a lot of chatter on social media of late about this topic, often twinned with high taxes, and a health care system not really working.
The macroeconomists keep talking about per capita income and everything is fine...but it sure looks like living standards are falling in Canada, Australia, UK, US, HK, Taiwan, SK and so on, almost always linked to exorbitant housing costs.
Multivariate Core Trend (MCT) inflation decreased to 2.9 percent in June from 3.2 percent (a downward revision) in May. The 68 percent probability band is (2.5,3.4).
Housing accounted for 0.44 percentage point (ppt) of the MCT estimate, while services ex-housing accounted for 0.40 ppt. Core goods had a lower contribution of 0.22 ppt.
Persistence in both housing and services ex-housing inflation was dominated by the sector-specific component of the trend.
"In other words, roughly speaking, I think it is reasonable to expect 3% real growth and 2% inflation. But if we continue to unhouse ourselves, then it will be 2% real growth and 3% inflation, which will be a combination of 2% non-shelter inflation plus an extra 1% of shelter inflation."--KE
My back of the envelope, and use the setting sun as a direction-finder ways suggest to me the above is true.
It is also a topic of global interest.
Recently, there seems to be a lot of chatter from Canadians they cannot afford to live there anymore, with housing at the core of the commentary. One Toronto resident lived in Eastern Europe for a half-year, returned home and said they actually have higher living standards there after pondering housing costs. An anecdote, sure.
My quick study is that residents of Sapporo, Japan (average $400 a month in rent) have higher living standards than people in Los Angeles (five-six times that).
Seoul, Hong Kong, Taiwan, Australia, UK...even Thailand has seen escalating house prices.
I salute KE. The macroeconomics profession need to wrestle with real world, huge structural impediments that can make mincemeat of theories.
Unless a modern nation has an aggressive priority approach to building housing stock (orimarily through unzoning property) it seems housing-poverty results.
Japan being an exception, but then they are an exception to everything. Well, they do have light zoning, or so everybody says. Also a declining population.
Way OT but maybe worth a post someday:
Severely unaffordable housing sucking the life out of ...
Canada's National Observer
https://www.nationalobserver.com › opinion › unaffor...
Jan 26, 2566 BE — Canada's housing market has gone from bad to worse in most major cities — and it's driving young people away in droves, writes columnist Max ...
Posthaste: Canada is becoming unaffordable for a majority ...
Financial Post
https://financialpost.com › executive-summary › posth...
May 20, 2565 BE — 71% of parents feel that Canada is becoming unaffordable as the cost of living rises, survey says.
Never has buying a home in Canada been more ...
Calgary Herald
https://calgaryherald.com › life › homes › never-has-b...
Oct 14, 2565 BE — The most unaffordable cities in Canada were Vancouver and Toronto, found a study by RBC Economics. Photo by Chris Helgren / ...
---30---
I have been seeing a lot of chatter on social media of late about this topic, often twinned with high taxes, and a health care system not really working.
The macroeconomists keep talking about per capita income and everything is fine...but it sure looks like living standards are falling in Canada, Australia, UK, US, HK, Taiwan, SK and so on, almost always linked to exorbitant housing costs.
Add on from NY Fed:
Multivariate Core Trend Inflation
June 2023 Update
Multivariate Core Trend (MCT) inflation decreased to 2.9 percent in June from 3.2 percent (a downward revision) in May. The 68 percent probability band is (2.5,3.4).
Housing accounted for 0.44 percentage point (ppt) of the MCT estimate, while services ex-housing accounted for 0.40 ppt. Core goods had a lower contribution of 0.22 ppt.
Persistence in both housing and services ex-housing inflation was dominated by the sector-specific component of the trend.
Latest Release: 2:00 p.m. ET August 1, 2023
Multivariate Core Trend of PCE Inflation
"In other words, roughly speaking, I think it is reasonable to expect 3% real growth and 2% inflation. But if we continue to unhouse ourselves, then it will be 2% real growth and 3% inflation, which will be a combination of 2% non-shelter inflation plus an extra 1% of shelter inflation."--KE
My back of the envelope, and use the setting sun as a direction-finder ways suggest to me the above is true.
It is also a topic of global interest.
Recently, there seems to be a lot of chatter from Canadians they cannot afford to live there anymore, with housing at the core of the commentary. One Toronto resident lived in Eastern Europe for a half-year, returned home and said they actually have higher living standards there after pondering housing costs. An anecdote, sure.
My quick study is that residents of Sapporo, Japan (average $400 a month in rent) have higher living standards than people in Los Angeles (five-six times that).
Seoul, Hong Kong, Taiwan, Australia, UK...even Thailand has seen escalating house prices.
I salute KE. The macroeconomics profession need to wrestle with real world, huge structural impediments that can make mincemeat of theories.
Unless a modern nation has an aggressive priority approach to building housing stock (orimarily through unzoning property) it seems housing-poverty results.
Japan being an exception, but then they are an exception to everything. Well, they do have light zoning, or so everybody says. Also a declining population.