Juno News - August 28, 2023


Canada may have the largest housing bubble OF ALL TIME


Episode Stats

Length

9 minutes

Words per Minute

189.10342

Word Count

1,887

Sentence Count

2

Hate Speech Sentences

1


Summary


Transcript

00:00:00.000 how big of an issue and concern for you is housing in this country according to a new report from
00:00:12.000 bnn bloomberg citing a strategist canada is sitting on the worst housing bubble of all time
00:00:18.720 with demand surging past available housing supply as record numbers of immigrants come to canada
00:00:24.640 looking for a home and with fewer homes being built we are well into the territory of disaster when it
00:00:31.440 comes to the housing market in canada strangely as the situation has spiraled out of control due to
00:00:36.640 reckless federal policies like mass immigration and wasteful spending which has triggered higher
00:00:42.480 borrowing costs the feds a few weeks ago announced that actually housing was primarily the responsibility
00:00:49.520 of the provinces and not a federal issue housing isn't a primary federal responsibility but then
00:00:55.920 a few weeks later the feds convened a housing themed cabinet retreat to try to solve the problem are
00:01:02.320 there a bunch of headless chickens running this country right now not knowing who's responsible
00:01:06.720 for the problems that they're all creating i don't know about you but it certainly feels that way
00:01:10.880 for me young canadians can no longer afford to buy a home which means most young canadians will be
00:01:15.920 renting forever which also means that they will have to put off retirement for many years because
00:01:21.360 owning a home and building equity in that home used to be a conventional way that canadians could
00:01:26.960 retire we're not just dealing with a housing issue when young canadians no longer have hope and dreams
00:01:32.240 for the future despair and depression kick in and if you don't think that will have an impact on the
00:01:37.520 economy then you'd be kidding yourself in fact things are so bad that canadians are now glorifying
00:01:43.200 the so-called van life making tick tocks and videos celebrating how great their life is living
00:01:50.160 in the back of a van or a car stick around to see this depressing new trend being glorified somehow as
00:01:56.240 a smart and modern way to live drop a like in the video help us out with subscribing to the true north
00:02:01.360 youtube channel and the common question for the episode is this is housing affordability your number
00:02:07.600 one concern let me know in the comments and let's get into it take a look at this article published in
00:02:12.320 bnn bloomberg last week canada likely sitting on the largest housing bubble of all time the canadian
00:02:19.120 housing market is at high risk of unraveling according to one expert the level of debt that
00:02:24.000 canadians have taken on in comparison to their incomes has put many in a precarious position should
00:02:28.880 mortgage rates continue to rise which is likely philip colemar partner at mrb partners told bnn
00:02:35.280 bloomberg in an interview on tuesday that strategist went on bnn bloomberg to give an interview
00:02:40.800 discussing the situation canada is in right now take a look at this the worst part for a housing
00:02:46.800 bubble is when you have a credit bubble underneath it and and the amount of canadian leverage into the
00:02:51.680 system versus incomes is is pretty astronomical and we've seen debt servicing going up dramatically
00:02:57.760 we've seen it's very hard a lot of homeowners they don't they don't benefit from 30-year fix like
00:03:02.160 the united states does yeah um so there was a lot of floating that got reset there's a lot of other uh
00:03:07.280 uh that are within rolling over within five years and we've been a couple years of this higher
00:03:11.200 interest rate environment so we have some risks in the situation we see the canadian banks really
00:03:15.120 not wanting to allow it to topple they've been trying to extend these things um but that's you
00:03:19.120 know in many ways um at some point it will we've got wildy coyotes sitting over a cliff and the bank's
00:03:25.120 trying to hold the plank out to hold it up but uh not to not to be too scary but uh but there is a risk
00:03:29.680 definitely a risk here that if mortgage rates go higher or unemployment were to rise when we hit the next
00:03:34.560 recession then this thing does end up in a delivery cycle so not only are canadians at high risk of
00:03:40.000 defaulting on their mortgages because underneath this housing bubble is a credit bubble fewer and
00:03:45.520 fewer homes are being built despite record numbers of people coming into canada and demand for housing
00:03:52.720 surging in july housing starts dropped by 10 percent the month prior which is actually still above the
00:04:00.320 market expectation the total number of homes built in urban areas in the month of july was down by 11
00:04:08.080 multi-unit urban homes dropped 12 percent and single detached urban homes dropped by four percent and
00:04:15.440 because interest rates are so high one in five home builders in canada are cancelling their bills
00:04:22.480 cancelling their projects but what are the solutions that we're seeing being put on the table when it
00:04:27.600 comes to this issue well it looks as though no one is talking about trying to stop the surge in demand
00:04:35.680 by cutting immigration we know that worked well in the 1970s during a housing crisis but both
00:04:42.160 justin trudeau and pierre pauliev want nothing to do with cutting immigration levels on the other side
00:04:48.160 it looks as though both parties have a consensus in building high density vertical housing around public
00:04:55.840 transit systems pierre pauliev wants to incentivize municipalities who build more homes and withhold
00:05:02.080 funds from municipalities who don't build but is it really the ideal in this country of working
00:05:06.480 extremely hard for your entire life just to live in a tiny box in the sky with hundreds of other
00:05:11.280 people rubbing shoulders with one another do we really want to see high rises popping up closer and
00:05:15.920 closer to our beautiful rural land in this country but where are these young canadians going to live
00:05:21.040 when they can no longer afford to pay for their mortgage and are forced to leave their home or in the
00:05:25.360 case of most young canadians won't be able to afford a home in the first place it looks as though
00:05:31.040 they're resorting to living in their vans and cars and many of them are now resorting to making a career
00:05:37.200 out of living in their van they're sort of van life influencers what a sad state of affairs our
00:05:43.680 country is now in but you take a look at these videos and let me know if you think any of this is
00:05:47.840 normal at all this is how i sleep in my bed first i jump back here like a mother frog and i tilt it
00:05:57.520 i tilt it back forward what and then i shove this down here and tuck it in real good and then i can
00:06:04.080 straighten out my legs like so but when i get cold i get my sleeping bag which is good for anything above
00:06:11.520 uh 20 degrees and so i zip it up and i lay back and then i roll down the window and then i woosah
00:06:19.200 just be warned i don't live in like a normal apartment this is my place right here where right here
00:06:27.840 welcome to my tiny home on wheels make yourself at home love it how long have you lived in it so it's
00:06:34.240 actually been two and a half years in this it's not just vancouver my husband and i have lived in
00:06:38.720 three countries in this thing um 15 states two provinces and we just got back from mexico last
00:06:44.080 week underneath this seat here is the closet here is our pantry so this is the whole kitchen area
00:06:51.760 an induction stove and a fridge right here as well hi i'm brooke and i live full time in my
00:06:56.560 suv with my dog pippa and this is quite literally how i poop this is how i do it i get a tall kitchen
00:07:02.720 bag i find that this size for some reason just works the best then i rip the seam on the
00:07:08.560 side so i can adjust it so it can fit my body i then just will simply pull it around my body squat
00:07:19.120 down just like you would if you were outside pull it up in the front in case i also need to pee and
00:07:26.400 then just poop right in the bag then i have some rocks in here to show you i tie off the bag as close
00:07:32.000 to the poop as possible so it's nice and sealed in there then i put it into a tupperware container
00:07:37.920 where i also store my dog's poop for the day somebody has to fix this situation this is not
00:07:48.080 normal this is not good not good at all van lifer who lives in downtown toronto it but she's very proud
00:07:56.160 of it you see it's become this new thing where they're like look at how cool this is guys you
00:08:00.880 should do it too you should live in your car like me and i moved the van from the parking lot that we
00:08:05.920 were in onto the street that's right in front of me yes i know this seems silly but there's a permit
00:08:11.440 system so you can't park there before 10 a.m so at around 9 45 i'll move the van there and once i know
00:08:17.360 we're not getting a parking ticket i'll do my skincare in the back brush my teeth don't forget sunscreen
00:08:22.880 then i get dressed do my makeup and get ready to head out to a cafe to do some work it was beautifully
00:08:28.640 crisp sunny winter's day and the cafe that i went to work at had a vegan apricot danish so i got a
00:08:34.480 danish and an oat latte and i sat in the cafe for about five hours doing schoolwork and that was my
00:08:40.000 morning she goes to study at a vegan cafe where she'll get her oak latte and she'll get her vegan
00:08:46.960 croissant and she's gonna sit there and study and but she really wants you to like almost embrace
00:08:52.800 her lifestyle do it too uh no thanks i think that that's probably not the highest ideal in life
00:08:58.960 but the success of these videos is speaking to a larger trend the reason why it's successful is
00:09:03.760 because it's relatable to so many people people are now having to live in their cars and vans
00:09:08.720 because they can't live in a house i mean it's a horrible situation i can't believe what we've come
00:09:13.600 to in this country that this is now being glorified we're getting lessons on how to live in the back of
00:09:19.120 your car and and how to get yourself your extra leg room where you can sleep and then go to the
00:09:24.480 cafe to get your latte your vegan latte look this situation needs to be solved it's getting out of
00:09:30.400 hand it's getting out of control no hope and no dreams for young canadians because they're giving up
00:09:35.440 on home ownership and instead are looking for alternative solutions like living in the back of a
00:09:40.800 van all right everyone that's gonna do it for us today on the show thank you so much for tuning in
00:09:44.720 my name is harrison faulkner and this is ratio