Affordable housing is a hope that dangles in front of the voters at every election around the world without a positive result and we THE SHEEP fall for it every time!
Aug 27, 2021 – Many people dream of owning a house in the city but cannot afford it because of insane real estate prices around the world. Affordable housing is a hope that dangles in front of the voters at every election around the world without a positive result and we THE SHEEP fall for it every time. But is the government to blame or are we as a society part of the problem?
According to the National Bank of Canada’s Housing Affordability Report, you must have an annual income of $ 125,000 or more to afford a decent home in Toronto, Canada. A study by HSH.com found that number was $ 198,978 in the San Francisco Bay Area. It takes $ 160,000 pre-tax annually in Sydney to buy a decent home.
A global problem
Toronto, along with other major cities in North America, is facing a sharp decline in affordable homes as the population soars. This has been widely publicized in Vancouver and Toronto for years, but many other Canadian cities will also face pay constraints in 2021.
This is not just a Canadian problem, it is a global problem. San Francisco, USA, San Jose, USA, Melbourne, Australia, Auckland, New Zealand, Sydney, Australia, Hong Kong, China All saw property prices soar dramatically despite COVID and job losses.
Why couldn’t we solve this?
This week all major political parties in Canada announced reforms to tackle the affordability crisis, but the real question is not what those reforms are; but does that? government want house prices to fall?
What if house prices go down? An economic meltdown and people will struggle. The people will lose most, if not all, of their wealth and the government will lose the next election. In addition, the state’s tax revenue depends on house prices. When taxes come down, all levels of government suffer from the impact on their bottom line.
Let’s look at those next Builders: Do you want to solve this problem?
When real estate prices fall, a lot of construction and investment in new development projects cease. This will add to more supply problems than we currently have in the market.
Do homeowners want to solve this?
Let’s say you are a Homeowner and you are in the market to sell that home and suddenly the market value of your home drops to half what it’s worth today due to an economic measure put in place by the government. You or the salespeople will lose a lot of time. You do not want that.
Do buyers want to solve that?
Let’s say you are a Buyers waiting for the right time so you can buy those homes at rock bottom when the market collapses. You saved some money to be able to afford this house. When prices go down and the market collapses, what happens to those collapses? An economic crisis can result in job loss, financial chaos, tightened lending practices that eventually result in inability to qualify for a mortgage, or you may find yourself in dire financial straits. Most likely, you won’t qualify to own a home either. Why do you want this to happen?
So who wants that Affordability Housing Crisis To Be Solved? No one! This is my point.
All forms of government come up with many solutions, when there are elections, promises made and promises broken is a common issue, but all of them these remedies are short-term plaster fixes all of which have been tried, tested and failed many times around the world.
We need permanent solutions that Correct the problem at the source and on a global scale.
Here are the top 5 solutions to solve the problem Housing affordability crisis, that is, when someone tries to solve it …
- Faster, more efficient and barrier-free transit: A spider web transit system in multiple cities, including suburbs, that is super fast and efficient. Do this now and do it quickly. Short term privatization where private companies invest in infrastructure costs and can make money on the project for 10-15 years and then ownership is transferred to the public. This eliminates the need to live in the city and protects the environment from millions of cars on the streets.
- Outsource construction: Create affordable living space on Kronland with 100-year leases with prefabricated houses made in China. We outsourced everything else to keep prices down why not build? This gives people quick access to affordable housing. A person currently spends 30-50% of their income on housing. By outsourcing, we will cut the average spend per family by hundreds of thousands of dollars. Affordable housing can reduce a person’s working hours by 20-30% in order to maintain the same lifestyle. Think of 3-day weeks because you can afford it.
- Eliminate Government Construction Red tape: Eliminate the legacy of the current construction industry that is the bottleneck that is causing this insane housing shortage in major cities around the world. We have to make sure that we deregulate the construction industry as it is overregulated. Intensification should be given priority and developments of public blockage should be limited to extreme causes. The zoning should be changed to allow for more development and there should be an incentive for builders to build subsidized housing for low-income families.
- Luxury rental apartments in cities: Create luxury rentals that people will want to live in. This will remove many buyers from the market and lower the demand in the market. At this point, we as a society are moving towards a rental-oriented market. Hence, luxury homes for rent should be the focus for the next decade so that people who cannot afford to buy can still have access to high quality rental homes.
- Round table initiative from great minds worldwide to find solutions to combat the sustainability of the global population with an emphasis on housing. For example, get all student architects around the world to compete for prizes. As college students, they have not been corrupted by restrictive industry mindsets and can find innovative, low-cost ways to address this problem. Let them fight this like we’re being invaded by aliens.
Video link: https://www.youtube.com/embed/aNg8_OxtC0Y
About the author
Adnan Feroz is a Toronto-based serial entrepreneur who runs multiple businesses in accounting, coaching, construction, e-commerce, motion picture production, marketing, and real estate. He’s also an award-winning real estate agent, motivational speaker, YouTuber, international best-selling author, and podcaster.
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