Dearest readers, hope everyone is doing great and making use of the wonderful weather we're having now in the best way possible (though my heart goes out to all the flood victims here in Canada, and the victims of the volcano eruption in Hawaii). Thinking about how nature pushes us to change, adapt and rebuild every now and then, I started to think about social cataclysms caused by the socioeconomic changes and pressures we have to deal with in high-demand metropolitan areas like the Greater Toronto Area. Recently, a CBC article detailing the plight of most GTA people struggling to keep up with skyrocketing rent costs made me think about how our society creates its own cataclysms just as nature does- or so we like to think. Is the soaring rent situation so surprising, what is it actually eliminating, and does it benefit the society in any way? Let's explore this so we get a clearer picture of the situation, as this situation will happen in every major Western metropolitan area of any importance to its province, the country and the global markets.
Before we start, however, let's pull a few quotes from this CBC article in order in which they appear in it:
There we have it, dearest readers- something that seems like a dire situation. However, is it so surprising? No, it certainly is not. The Greater Toronto Area is one of few in the entire country that has been tasked with the following:
But then again, is it really true that this situation will inevitably push many young professionals out of Toronto to the fringes of Greater Toronto Area, or even outside it? Of course not. This is not a self-fulfilled prophecy for each and every person here. Many of the people complaining about this ignored the new reality of the Toronto Area- you can't just finish school and start in a career, or not finish school and do two low skill part-time jobs, and be entitled to your very own one bedroom apartment in the city based off of that alone! This is the end of single young professional, one bedroom condo, financially unsound party fueled lifestyle. In addition, many people now realize they struck out on their own way too early- they should have made it work with their families and stayed at home much longer. Others now realize that you can't just come from another province to this area all on your own, financially unprepared and poorly informed, and be entitled to a great bachelor lifestyle. Finally, the only way you get to have a decent living space is with a) financially responsible roommates who you know very well or b) a serious, financially responsible romantic partner who is ready to date you long term with common law or marriage potential clearly on the horizon. Everything else brings nothing but agony here, unless you are in an excellent financial situation, in which case this entire article is more of a curiosity for you than anything else ;)
So, will the high rent in Toronto Area benefit society in some way, or does it already? Yes and yes. It will push families to stick together and be more cohesive. It will push people to get more serious regarding dating and marriage. It will also compel people to be more fiscally responsible and budget a lot better for mandatory expenses as well as entertainment and fun activities. It will have a sobering effect on people's attitudes and habits (for many this means goodbye, Uber Eats McDonald's every other night). Who knows, maybe some good comes out of all this.
So there you have it, dearest readers. What do you think?
Before we start, however, let's pull a few quotes from this CBC article in order in which they appear in it:
- Rental prices outside in the Greater Toronto Area and beyond are climbing closer to Toronto's and that's because more people are looking to rent instead of buy, real estate experts say.
- Average cost to rent condo in GTA hits $2,206, up by $214 in past year
- "I lived in Toronto my whole life. It wasn't until Toronto started increasing its prices where I had to move out to this part just to pay rent," Lau told CBC Toronto.
- "What happens when people can't afford their rent, they may miss a payment ... they also may need to access food banks because they can't afford to pay for the other things," said Carlson.
- The Ontario government introduced the fair housing plan last year, which includes creating more affordable and family-sized rental housing. But Carlson says it will be a while before the effects of that are seen and the pressures ease in the GTA.
There we have it, dearest readers- something that seems like a dire situation. However, is it so surprising? No, it certainly is not. The Greater Toronto Area is one of few in the entire country that has been tasked with the following:
- Provide ground for luxury condos to attract foreign investors, many of whom send their children to occupy those condo units and study here to gain Canadian and Western education and experiences (e.g. for people from Hong Kong and Mainland China, that is like killing two birds with one stone). These units are occupied and not available for rent. Those units that are not occupied by investors' kids are too few and are being rented out at luxury condo prices. Remember, if Canadian builders were creating affordable basic-look-and-feel condos, foreign investors would not flock to buy them nearly as much and that's that.
- Take in huge amounts of refugees and immigrants who come to Toronto area disproportionately versus other parts of Canada because of more immigration supports, better public transit, more job seeking and education opportunities, less need for a car etc. This contributes to the lack of affordable housing on the market.
- Take in economic refugees from other Canadian provinces. The economic downturn in Alberta has affected that province and many around it, as many seasonal workers used to come to Alberta from other provinces. In addition, there are ostensibly not enough jobs for highly skilled, highly educated professionals in other provinces so they also have to come here. This internal displacement in Canada further decreases rental market inventory and drives rental prices up.
But then again, is it really true that this situation will inevitably push many young professionals out of Toronto to the fringes of Greater Toronto Area, or even outside it? Of course not. This is not a self-fulfilled prophecy for each and every person here. Many of the people complaining about this ignored the new reality of the Toronto Area- you can't just finish school and start in a career, or not finish school and do two low skill part-time jobs, and be entitled to your very own one bedroom apartment in the city based off of that alone! This is the end of single young professional, one bedroom condo, financially unsound party fueled lifestyle. In addition, many people now realize they struck out on their own way too early- they should have made it work with their families and stayed at home much longer. Others now realize that you can't just come from another province to this area all on your own, financially unprepared and poorly informed, and be entitled to a great bachelor lifestyle. Finally, the only way you get to have a decent living space is with a) financially responsible roommates who you know very well or b) a serious, financially responsible romantic partner who is ready to date you long term with common law or marriage potential clearly on the horizon. Everything else brings nothing but agony here, unless you are in an excellent financial situation, in which case this entire article is more of a curiosity for you than anything else ;)
So, will the high rent in Toronto Area benefit society in some way, or does it already? Yes and yes. It will push families to stick together and be more cohesive. It will push people to get more serious regarding dating and marriage. It will also compel people to be more fiscally responsible and budget a lot better for mandatory expenses as well as entertainment and fun activities. It will have a sobering effect on people's attitudes and habits (for many this means goodbye, Uber Eats McDonald's every other night). Who knows, maybe some good comes out of all this.
So there you have it, dearest readers. What do you think?