Right now around the world in different major cities we can see real estate problems worsening. The affordability crisis is impacting a growing number of people, who are worried about rising prices of rent and homes where they live today.
Vancouver, San Fran, New York, Hong Kong, London, many cities worldwide have been said to be facing a potential real estate bubble.
For almost a decade the growing question has been lingering of whether or not things might be a little overpriced. Bidding wars are going on in a growing number of B.C. cities and in other parts of the world.
In many major cities today people struggle to afford the roof over their head, and millions have already given up on the dream of owning a home. Even those who are working professionals.
Giving Up On The Dream of Home Ownership
In the years to come, as prices continue to climb, we will see more people also give up on that dream too. It is a real estate crisis that has been worsened by covid, as the pandemic has brought new housing trends after people spent so much time working from home and on lock down.
More individuals and families went looking last year for a bit more space, turning to areas outside of downtown core regions like Vancouver. This has brought the housing boom to other areas now like Langley and elsewhere.
Not only did covid impact moving trends and the real estate market overall, but it also impacted other areas of the industry like construction. We are seeing rising prices in some areas of that industry already, like in the area of lumber where prices have been skyrocketing.
Waiting For The Best Time To Buy?
Many thought that perhaps the pandemic would mean a decrease in prices, finally we might see some return to normalcy. But we saw the opposite, the Canadian housing market continued to roar and so did other real estate markets in the U.S. as well. If you are waiting for prices to decrease a significant amount then you might be waiting forever.
COVID-19 essentially made the bubble worse, we didn’t see a turn around in the market in the way of prices.
Things got more in-demand for single family homes and more expensive. It was a surprise real estate boom that you couldn’t have seen coming.
As this raging hot real estate market continues to thrive, more and more are being priced out of the market and the dream of home ownership.
Are we at a potential housing market tipping point? There are growing calls in Canada now for policy makers to step in and do something about the issue.
They have been called on before to do the same, but we are still facing a problem of affordable housing in the country and province.
What had been previously suggested weren’t solid solutions that meaningfully addressed the problem, that is clear from the problem that we still face today. When there is a great deal of speculation happening in the housing market, it is the end users and families who suffer.
Will the house bubble ever pop?
If it does not pop and continues to grow, that is going to be a very depressing economic future for millions. There is already a problem with unaffordable homes in Vancouver, around B.C. , and in other major cities in the world.
What will that unaddressed problem be like in another 5 or 10 years from now?
Especially when rent prices increase and more families feel that decreased standard of living, they might see 50 to 60 per cent or more of their income going to just rent and utilities.
As things get worse, this is not going to be good for the economy. As things get more expensive just to have a roof over your head, millions will be quite literally just working to survive, rather than working to try and enjoy their lives and plan for better things in the future.
The further this problem worsens the further it deteriorates hope for individuals and families.
It is the bubble that we’ve been waiting to see pop for years now and it still doesn’t look like it is ever close to any correction, no matter what ideas policy makers might come up with.
They aren’t suggesting anything groundbreaking that is likely to make a drastic impact. If they could’ve solved the problem then maybe they would have by now, or maybe they don’t want to seeing as the Canadian economy is so dependent on real estate success.
The real estate bubble 2021 is seeing right now is real and it is impacting a variety of regions, including places in the U.S. too like Florida, Texas, and other regions.
In B.C. we have seen bidding wars all around the province and across Canada in different areas. Continually we see that people who live in these cities are being priced out because of the never-ending rise that some have trouble even admitting might be bubble territory.