Canada, often admired for its calm demeanor and serenity, is now inching closer to a dystopian nightmare. Housing costs have doubled, crime rates have risen, homelessness is at an all-time high and the list goes on. What follows is an eerie insight into how the country has gradually deviated from what we once took for granted, turning into a horror story right before our eyes.
The Unbelievable Price Spike in Housing costs
To get to the point, let’s delve into the bigger picture of the Canadian rental market. In 2015, the average rent paid by Canadians was $1,172. Now, eight years later, it’s $2,289. This implies that those who invested in Canada’s rental market back in 2015 have been reaping profits outmatching some of the world’s top-performing hedge funds.
Not just rental; the real estate sale prices in Canada are on a shooting spree as well. A house that cost $348,000.12 in 2011 will set you back by $709,000 today. The situation is more critical in Toronto, where a house costing $500,000 in 2013, has now surged to a whopping 1.3 Million in 2023.
In 2015, the average monthly mortgage on a new home purchase stood at around $1400. Today, it rests at a staggering $3,500. Given that the average Canadian family makes around $ 5,000 post-tax, it becomes evident that Canada has a mortgage crisis lurking in the shadows.
The Housing Shortages
A significant factor behind the horrendous real estate market has been the housing shortage. For two decades now, Canada has been under-producing residences. In the 90s, public building programs came to a halt. Come 2000, private developers switched their focus to constructing small, 500 sq. feet apartments, overlooking larger row houses or detached houses. The cost of approval for construction also increased significantly, sometimes touching $300,000 merely for getting the consent to build a house.
Canada stands at the bottom amongst all G-7 countries when it comes to housing per capita. Current estimates put us 6 million housing units short.
The Middle Class & Lower Class Jobs Crisis
Seven years ago, a typical construction job paying $50,000 per year in Canada could cover most of your bills. Now, it possibly forces you to move back into your parent’s house.
The country boasts of the most educated workforce, which further complicates the issue. The middle class, bearing pricey university debts, is specifically on the hunt for high-paying jobs to earn returns on their education investment. Consequently, much of this workforce is overqualified for the jobs currently available.
The Escalating Cost of Living
Amidst all this turmoil is the looming cost of living crisis. Canada has reported high inflation numbers around 7%, although they’ve cooled down to 3% currently.
Housing, the largest expenditure for Canadians, has been rising by 17% annually. Astonishingly, either this is not included in the inflation calculations, or it’s misrepresented. Add to this the inflated food and energy prices, which saw a price hike of 50% and 150% respectively. The carbon tax itself is expected to take away 40 cents out of every dollar you pay for gas. This effectively means the government plans to take away 40% of the cost of gas directly to the carbon tax.
However, let me clarify I understand the reason behind enforcing a carbon tax and the vision to reduce emissions. Still, the question that remains is – are there any better alternatives to this problem?
The Population Surge
On another worrying note, Canada is currently experiencing its largest population growth since the baby boom. The astonishing fact here is that 96% of this growth comes from immigration. The federal government’s ill-thought-out decision to bring in record immigrants amidst a housing shortage and insufficient infrastructure has aggravated the situation.
Unless a monumental effort is harnessed to solve these issues, including a potential marshall plan, changing immigration policy, increased regulations on large corporations regarding price gouging, real estate buying, and tax evasion, among others, it seems unlikely for the situation to ameliorate.
The Questionable Internet Governance
The government passed two bills earlier this year, namely, Bills C-11 and C-18, dressed up as measures to bring fairness in Internet usage, ensuring more visibility for Canadian content online. However, a deeper look into these bills reveals a picture where the government holds near-total control over Internet algorithms, homepages, news feeds, and various other aspects of the Internet space. This raises fears of small, home-grown creators suffering the wrath of being hidden behind a wall of government-controlled content.
So here we are, a Canada with federal control of the Internet, a suffocating housing crisis, skyrocketing food prices, a stagnant economy, a student debt crisis, price-gouging corporations, a rise in homelessness, and other major issues like crime and drug overdoses.
Maybe the next government will be more willing to try and rectify these issues. Whether they will succeed or even genuinely attempt to resolve the crises, is a question we may only answer with time.
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