Bundestag election: Edmonton’s actual property market is already reasonably priced

Links to the breadcrumb trail

“The problem isn’t ‘national’ pricelessness; it’s regional prohibitiveness in BC and Ontario, “says realtor Nathan Mol

Author of the article:

Joel Schlesinger for the Edmonton Journal The affordability of living space is one of the top issues in the federal elections. The affordability of living space is one of the top issues in the federal elections. Photo from postmedia file

Reviews and recommendations are impartial and products are independently selected. Postmedia can earn affiliate commission from purchases made through links on this page.

Article content

A new study of election promises to improve housing affordability found that party platforms are not enough, but those involved in the local resale market argue that Edmonton’s market is affordable even without intervention.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

“There’s an abundance of affordable housing here,” says Nathan Mol, real estate agent at Liv Real Estate in Edmonton.

“The problem isn’t ‘national’ pricelessness; it’s regional prohibitiveness in BC and Ontario. “

The author of the 2021 Platform Analysis: Housing Affordability Study agrees that Edmonton – like other prairie cities – is significantly more affordable than Toronto and Vancouver in relation to local incomes.

“Alberta bucked the trend,” said Paul Kershaw, director of the Generation Squeeze Research and Knowledge Translation Lab at the University of British Columbia.

“But against the trend for economic reasons” due to the ongoing challenges of the oil and gas industry.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

“So it is easier for a younger person to think about entering the market (in Alberta) than in British Columbia or Ontario. . . even Halifax. “

Still, he notes that the three major political parties have numerous policies on their platforms to promote affordable housing, including for first-time buyers. But these promises are flawed.

“These are not fixes for system changes,” says Kershaw. “These are hacks that are likely to make the problem worse.”

He points to the NDP’s plan to increase mortgage amortization to 30 years, while the Conservatives are proposing to allow terms of up to 10 years to allow borrowers to cling to historically low interest rates.

“But when hundreds of thousands more borrowing, what are they doing? They offer the apartment price. “

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

The Liberals’ First Home Savings account – which allows for tax deductions on contributions of up to $ 40,000 and tax-free growth on that money – is, again, a good move in helping Canadians save more, he says.

But his other proposal to increase the size of an insurable mortgage to $ 1.25 million is likely to help drive prices higher, Kershaw adds.

“These guidelines work in contradiction to one another.”

Re / Max River City broker / owner John Carter says federal parties need to focus more on regional politics to meet housing needs.

“The federal level must work together with the federal states and large municipalities to develop strategies that actually work.”

Still, Carter notes that Edmonton was recently ranked the fourth cheapest city in Canada in a recent Re / Max study.

advertising

This ad hasn’t loaded yet, but your article continues below.

Article content

Even when comparing median income with real estate prices, the average price in Edmonton is around $ 390,000, only about 3.3 times higher than the median income. For comparison, Toronto and Vancouver have almost 11 and 12 times the median income, respectively.

Carter says that increasing supply is generally the best way to increase affordability, but at the local level, adding supply in a timely manner is challenging.

“In Vancouver, for example, it can take over two years to get planning permission for a condo or apartment building, and then two to three years to build.”

Kershaw agrees that state party platforms should address community issues, including NIMBYism (not in my backyard) that prevents many densification and infill projects from moving forward.

In fact, liberal and conservative platforms are tackling this with funding tied to housing projects that encourage densification, he says. This king of politics would “provide political cover to do what (local politicians) know they have to do, which is to resist NIMBYism”.

Share this article on your social network

advertising

This ad hasn’t loaded yet, but your article continues below.

By clicking the registration button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Comments

Postmedia advocates a lively but civil discussion forum and encourages all readers to share their thoughts on our articles. It can take up to an hour for comments to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We turned email notifications on – you will now receive an email when you’ve received a reply to your comment, there’s an update on a comment thread you’re following, or when a user you follow follows comments . Check out our Community Guidelines for more information and details on how to customize your email settings.

Comments are closed.