this post was submitted on 24 Jan 2024
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Things working as desired. Housing market holding its value, preserving 65% of Hamiltonians' wealth. You can substitute Hamiltonians with residents of most places across Canada since the homeownership proportions are similar.
I wonder how much wealth they're really retaining. While I'm sure people with real estate is mostly doing better than those without, as long as they're living in the area they're getting hit with the high cost of living they help create.
In theory people should start realizing the economies don't happen in vacuums and by keeping living costs up for others it means theirs will likely go up as well.
This intuition kinda works on average but even on average it may not apply fully. Yes you could trace cost increases to the real estate market but those might still not neutralize the upside for owners. Most real estate owners bought years or decades ago. Sure their property taxes and other costs are going up. However people's properties who bought 10 years ago have more than doubled in price. From their point of view, things are not bad at all. The ones that don't own are hit disproportionately. And many if not most are spatially isolated from the shantytowns, courtesy of urban sprawl. π