The Middle Class Dream is fading away but that’s OK
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This article is from the Globe and Mail and the headline is, Can the Government Save the Middle-Class Wannabe Homeowner in Toronto and Vancouver? This is a recurring theme that we’re seeing again and again, where the middle-class homeowner, as it’s called here, is being shut out of the market more and more so, as prices are rising year after year, after year.
Ownership of a home especially is going to become exclusively the domain of the wealthy in Canada. This is a normal phenomena that we’ve seen in other developed economies and major cities around the world. Where going to start to see it more and more in Toronto and Vancouver. The home ownership rate is going to come down. More and more people are going to be renting and as condo investor, as real estate investors, this is a good thing for us. We want to see the home ownership rate come down. We want to see rental rates rise. We want to see more people moving on to the rental side of the spectrum and that’s going to sustain our investments for many years into the future.
It is an unfortunate reality if you are a younger person in Canada, in Toronto and Vancouver in particular, looking to buy, but this is a reality. This is a reality of being major global cities that Toronto and Vancouver are. Still very cheap compared to most cities of their stature around the world, but we can expect prices to continue to rise and the ownership rate to continue to decrease. So that’s a good thing for us as condo investors.