ooohhh, scary

Marco Anglesio mpa at the-wire.com
Tue Jun 22 13:08:51 PDT 1999


On Mon, 21 Jun 1999, Doug Henwood wrote:
> forwarded the other week saying that 15% of house downpayments in
> California are coming out of stock market gain. And finally this story that
> someone forwarded me yesterday. I don't think it's as relevant to overall
> housing inflation as the author seems to think, because the BLS is trying
> to measure average, not marginal, costs, but still...

Perhaps that's a matter more of demographics than of a real-estate boom? Toronto is undergoing a real-estate boom of its own, but much of it seems to be consumed by condominium projects, either conversions from rental or new buildings, which are typically one- or two-bedroom units. If anything, these projects are appealing to people who can benefit from the low interest rates and the low down payments required in Canada (~5% minimum), who would be renters under any other circumstances. It may also account for much of the squeeze on rental properties; while the city is growing, rental properties are stable or shrinking.

The city is also outgrowing the suburbs, which is interesting in and of itself, but that's offtopic.

Marco

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