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Why are houses in Canada so expensive?
A decent single family house in Toronto (not detached) can't be for less than $360k. Houses are small in area and, let's face it, even though some people enjoy winter, most of us regrets it. Only the bases are brick, most of the house is really wood made.
If you go south (US) you get for the same price much bigger land with all year sun, beaches nearby, detached and 100% solid rock.
So, there must be a reason right?
I'm not speculating with the data, I recently helped purchasing a house in Florida and now I'm looking in Toronto, so I have the actual numbers, measurement and specs.
This is not a complain about Canada and I'm not looking for critics to the goverment, law system or anything politically related... I'm just looking for the "technical" facts that could explain the high prices for -aparently- less valuable houses. I want to buy a house an feel that I'm doing a good investment.
You can't seperate the taxes that are imposed that relate to the costs of housing. Canada is a socialist country. Hence any form of private onership is taxed to a high degree. Me...I would never consider living there. Unless I wanted to give 70% of my income to the people that don't work.6 years ago
It's probably related to economic growth. In the case of Alberta, booming oil and gas industry have caused housing prices and rents to soar. Large cities like Toronto tend to be very expensive to begin with (or at least they sure seem that way to those of us who live in smaller centres).by badger123ca - 6 years ago
Its nice to see a question without complaints about canada. The thruth is like all over the world in capitalist markets supply and demand set the prices. Its really not a canada vs US thing ideologically its our economies. Canada has a way lower rate of unemployment, I htink from what I have researched that canadians also make higher wages in fields without degrees. Our minimum wages are way higher and generally no ones make that low. WHere I am from min wage is I believe like 7.50 but the starting wage at mcdonals is 10.50 an hour and I live in saskatoon a city of no more than 230,000. So the thing is prices have gone up because canadian can afford to pay it. Also many studies show that paying high taxes ie. for healthcare still are cheaper than what you would pay if things are privatized.
Since you are looking for an investment I would say buy in the US. And like you I am not complainging about the US im just looking at the data your economy is not doing very well right now and you could hit a major recesssion. Canada is booming. I know alot of canadian who are buying properties in the US because the market is so low and will hang onto them for years until it picks up. So again its not an ideological things its just our economies and supple and demand. Someday Im sure your economy will be doing much better and our might be in a bit of a rut so all of a sudden our housing prices might be alot lower.
I hope this helped