darwink
Senior Member
given average weekly earnings increases in the province, I imagine your employer is heading for a reckoning.
2001: $669.59 2024 (February): $1,306
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Calgary real estate market
- Thread starter Davidackerman
- Start date
2001: $669.59 2024 (February): $1,306
DougB
Active Member
If wages kept up, inflation would keep rising.
Red Star
New Member
Based on the chart, since the year 2000 average wages have almost doubled. From that same time period, the cost of housing has increased more than three-fold
darwink
Senior Member
They can be related if the supply of goods is limited, if productivity is flat. Thankfully that is not the case. Of course supply shocks and demand shocks exist, and government price or supply controls for certain goods exist. At least we can fix the later two if we want.
From 2000 to now my wages have increased a little over double the amount (around 120%) but my house value has increased roughly almost 5 times what I paid. I know not all houses have increased that much, but there's definitely been huge inflation when it comes to housing. A lot of Calgary's housing inflation has been quite recent, but even before the most recent bump, it was still tougher for young people to purchase homes compared to 25 years ago.
badc0ffee
Active Member
Where do you live that your house is now worth 5x what it was worth in 2000? I know you said not all houses increased by that much, but it made me curious. 3x seems closer for most of the city.
darwink
Senior Member
Our old house is pretty close to 5x. Lake Bonavista. Parent's old place in Signal Hill is close to 4x.
DougB
Active Member
Canadian productivity is flat, which is why rising wages are inflationary.
Canada stands next to no chance of ending controls on industries like dairy, poultry, telecom, commercial air travel or financial services as those are concentrated in ON and QC. Laurentian Capitalism is based almost entirely on protected oligopolies. The only hope would be Trump making at least some of those conditional on USMCA re-negotiation. The Liberals missed a huge opportunity in, for example, not agreeing to end supply management and open telecom up to competition, in return for a long-term softwood lumber deal in the original USMCA negotiations. They could have blamed it on Trump.
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DougB
Active Member
The house that I purchased backing onto Fish Creek Park in my mid 20's is listed for 6X what I paid in 1996.
Another data point, the house that my parents bought in 1980 sold in 1996 for 2/3 of the purchase price. It would now go for about 3X the 1980 price. Timing matters.
darwink
Senior Member
Changes in how foreign students are TFWs are estimated is responsible for a big part of this.
Also there should be a big boost when Transmountain, Site C, BC LNG startup in earnest.
Cambrian Heights. It's close to the park with a view, so that may have helped the price increases.
Red Star
New Member
Why rents are going up so fast in Calgary
'The business of generating yield for shareholders': Why rents are going up so fast in Calgary
Rental market in Calgary: How the financialization of housing is pushing tenants to the brink of homelessness
calgaryherald.com
Steve Pomeroy, a Carleton University professor and housing policy researcher, ascribes the surge in population to “a very unmanaged system of immigration for temporary foreign workers and international students.”
“So, what we’ve seen is a double whammy of the massive increase in rental demand — both from pent-up demand by (prospective) homeowners and newcomers,” Pomeroy added.
DougB
Active Member
Yet all of the oilsands plants that ramped production during the Trudeau era didn't push up per capita GDP. They likely arrested declines and I expect TMX and LNG Canada to do the same.