Woe to all the fools who bid up the price of housing to such extremes. May the price of housing collapse 30% and not recover for decades.

As a realtor in my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

As a construction worker who does condos/ underground garages for condos I'll tell you this - price is high because of - curruption (building materials go missing or foreman lunch tabs.) once my machine sat at a job for a week at 2 grand a day just because they didn't want me to have to reschedule bringing my equipment there. Another is safety bribes (bribing people with the ability to slow or shut you down)

Questions: 1) HOW MANY OF THE SOLD UNITS WERE PURCHASED BY FOREIGNERS FROM OUT OF THE COUNTRY? 2) HOW MANY OF THE SOLD UNITS WILL BE “OWNER OCCUPIED” vs RENTAL/INVESTMENT UNITS?

We have the most over-valued and inflated real estate market in the world and the banks have been doing everything to keep it there... artificially... but the market has it's own will, as they'll find out.

When a city has a “housing shortage” luxury condos are the last type of housing it needs. The city needs to find a way to get developers to build cheap low rise buildings with affordable rents.

Toronto doesn't need luxury condos....it just need affordable apartments & houses.

Glad the KZfaq algorithm suggested your videos. Great content. Keep it up!

in 2010 you coul dbuy a 3000 sq ft house for 300k. 1.8 MILLION AND THE SECOND BED DOESNT EVEN HAVE A BATHROOM. THATS CRAZY.

Developers call all new builds luxury! Many are built with builder grade quality products which are not high end! The developers have been ripping people off for decades! However people want to live in new move in ready suites. The developers have built and marketed their products to make a huge profits and it worked for a long time! The thought of renting or buying older units that fit a new buyers budget seem to have been lost over time!

All things that go up must come down, including real estate

luxury condos, no luxury jobs and no luxury pay.

Huge info source ... thanks will pass on to my son a carpenter in GTA ... this speaks to where the work is going and likely ending.

Is nobody else sickened by the fact that the government makes more money off of a new development than the private enterprise taking on all the risk? And for what? Some rubber stamping, reviews and approvals. It's disgusting.

They should just market to various organized crime syndicates so they can wash a tremendous amount of money.

Remember Giraffe condos? It is still a abandoned building at Dundas west and Bloor!

Canada is dying so fast.. the prices are so stupid. Toronto is mediocre at best but the housing prices were so absurd. It’s going to keep crashing Just look at assignment sales( houses and condos )... people are losing their life savings already. Good luck to all the people who are still invested and optimistic.

There isn't a housing crisis in Toronto. We have lot's and lot's of empty condos here . There is an affordable housing crisis in Toronto. Cue the real estate market here swirling the bowl. About time.

It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.

I know nothing about real estate other than being an ordinary Toronto home owner. But I do know incompetence and inefficiency when I see it and that best describes the Toronto construction industry. I have watched in horror as the house next door was demolished and replaced with a new shiny bigger house. They destroyed my property in the process. House mostly ok, everything around it including 40 foot in ground pool into a sink hole. The damage was caused by incompetence of the developer. My insurance hired a developer to fix my place. Now 3yrs later with multiple incompetent twists and turns they have spent $5m and it will not be finished until the end of 2024. Zero project management. Endless rental of equipment that is abused or idle. Wasted material. There have been too few workers in an over heated market and it degraded in competence.

5M for 1500sqft is insane even at todays prices, you can get a bigger house on the subway line for half the price

Nice presentation, clear, concise, and accurate.

It’s a shame see this project struggle so much. What they are trying to do is something that is too rare in this city. Top tier architect and only 416 units in such a big tower. I watched the original presentation and the level of care and detail in making it a truly great building was amazing. Any other developer in Toronto would have just crammed 1000 units into a standard glass mid range tower. I hope they manage to pull it off in the end without discarding their original vision.

Jenny Coco is also the woman behind Bridging Finance, currently in all sorts of legal trouble for fraud

In 1973, a 21/2 rented for $90/month. 50 years later, it's $3000/month. No one's salary rose at that level. How could this massive shift of wealth from individuals to landlords happen?

I think the problem here is "luxury condo". I think developers need to start having the cash to cover before they start contruction rather than having debt.

There's a ton of problems as to why, from municipal permits costing millions, to delay in construction due to lack of trained workforce; on top of that the interest on their debt quadrupled. Simultaneously the average buyer has so much debt and faces similar financial problems due to rising inflation and interest rates hike. So upgrading or first time buying for everyone is out the question. Foreclosures are up and banks still want the millions for the house that was liened out to the consumer so repos are just as expensive with no buyers, placing pressure on the banks. We have every single leader in this nation from Federal Ministers to Provincial ones down to the municipal government who all kept demand high and supply low so their wealth could grow.

Very informative, thanks man!

Very good comment. The Feds are pumping billions into helping finance projects that are supposedly going to be “ affordable” rental housing. “ Affordable” is defined as based on the local income of the local population - meaning whatever the going rate is rentals. Ie Income $100 k, rental at 30% of income = affordable is then $30k per year. Lots of BS on that one guys. Some rentals in these projects are already being limited in how many units actually will be rentals, as compared to condo units.

Very Professional and articulte video. Keep it up Jordon.

Thanks for the update. How you show that view of Toronto skyline?

Young people today have no chance to own. On the plus side no big mortgages mean more frapacinos.

Great stuff here. Thank you, Jordon

when there is a great imbalance, the universe will find a way to make it right. Not surprised to hear that greed is teaching those fools a tough lesson.

nothing is for sure about asset price and inflation in Canada, but one thing is for sure that is rent will just keep rising due to supply shortage, especially 2-3 years later due to significantly lower housing starts now. there is almost no other approach left other than a great reset to make a lot of leveraged property owners to lose their pants, a great reset to kick start a new healthy cycle. Yes, ironically you need deflation, which is the thing modern credit driven capitalism scares the most even more than inflation (remember the fiscal stimulus and free pay cheques during covid?), to put everything back to where they are supposed to be. You need a lost decades or two like Japan to restore so called affordability, and suppress leveraged credit driven speculation. Heard too much numbers talk by economists and expert, but it is really not that complicated. When you have cheap money for so long time, house investing demand is way higher than normal interest rate era, that extra artificial demand causes a rising inflationary spiral inside the whole real estate industry including rent, building cost, property tax, etc. If it's just the supply shortage that is causing the price to go up in such a speed, then how do you explain the fact that most of the similar or bigger city in US has way better affordability?(and ironically Americans thinks their affordability is one of the worst in history) how do you restore so called housing affordability, unfortunately it is not likely to be done by increasing housing supply, because building more houses in short period pushes building cost higher not lower due to lack of construction labours. the likely way to restore housing affordability is artificially lower the housing investing demand. Someone would argue that if you kill all the landlord, then who can supply those rental units? well, if the enough number of landlords has 2-10 condo units cannot pay their debt, they are forced to sell their properties at a heavy discount(not a good example but kind like US 2008). Was 2008 a bad thing? yes of course, so many people lost their home, job, money. But did it restore affordability in US? yes it did. Whether it will happen in Canada or not? only god knows.

Does anyone actually feel sorry for these greedy developers?

Of course, they're sitting on $1.6 billion in debt. All those downtown buildings are tied up in some crazy mafia. Teams of supposed professionals, where one is an assistant getting 20 bucks an hour, while the foreman logs it like they're both full-rate pros. Two pros at full rate, that's 2x$49.25 = $99.50. They hand over $75 to $80 to the pro, who then gives $20 to the assistant, and guess who pockets the difference? Plus, the hourly workers don't produce like the piecework pros do. It's ridiculous. I came from NYC and I've never seen such nonsense before.

What's the difference between bankruptcy and receivership?

all hail the bankrupt chain that finally might but a damper on the insanity in this country.

No problem, [they] can make that up in volume sales. No problem. Everything is fine, nothing to worry about. Just ignore [it]. No worries.

My sense is that the top tier condos were selling to very rich foreigners, primarily Russian and Chinese. (please- I am not hinting that these foreigners were non-legit). I think our federal immigration policy may have curtailed a lot of these foreigners from arriving. . . . It is obvious that the sudden escalation in construction costs have caused havoc. Planning and budgeting a project 3 or more years in advance takes on huge risks. Kudos to the developer who took a huge risk - went from dry-cleaning services to high-end condo developer and was taking on his next big risk of graduating into mega-high rise top tier developer. We need people like this. But it appears that the knock-on economic effect of covid has hit him hard. . . . The key issue is affordability and viability.... I would like to imagine the city of Toronto, the Province, developers and contractors need to sit at a table and work out the what can be done to make a new viable model to address our housing needs.

Great content, keep it up, love ur video!!

I moved back to Canada in 2019 after 25 years in Asia (Hong Kong and Manila). I was executive director of two public companies in the real estate development and holdings business. We also had building materials supply businesses. My friends do cNement work for high rises and malls. What amazed me upon returning to Canada is how slow construction workers are in Canada. I was astounded. Materials expensive. Bureaucrats ridiculous. Regulations stupid and workers slow. People in Canada and US have no idea what kind of competition they face overseas.

Fascinating times with so many wildcards.

also, I feel that perhaps its the wrong type of housing being developed for the demographic that needs it and are the gears that make the city run. Not the people at the levers - but the devs are always trying to shoot for the sky...literally/figuratively

This was expected! I am not surprised!

4.7 million for 1,400sq/ft … in Toronto. LOL😂😂! In 12-18 months time, we will be talking about the OVERSUPPLY of condos in TO.

Apparently they are saying high interest rates will be around for a long time. In some ways it's really bad but at least it's stopped this condo crazed development in the city where developers are getting rich from demolishing good rental stock replacing it with luxury condos. There's a problem if the average 30 year old cannot move out of their parents basement or has to move out to some cornfield to buy a house.

Very curious about Ghery's project in toronto and how this plays out too.

Bankruptcy is GOOD for business, imho. Assets that are presently being poorly managed will be sold at auction, likely at bargain prices, to new investors who can attempt to fix the previous owners' problems. This is ordinary competitive capitalism in action. Lessons will be learned by all who carefully observe this latest fiasco.

People need to realize that nobody can afford to buy luxury real estate anymore. Plus the value is just horrible. $4million for just a box in the sky??!! Seriously?? When the economy is good and everybody is making money, sure nobody cares but when people have no money to spend, nobody would want to buy it. Nowadays, people need affordable housing. So instead of spending all that money to build things that nobody can afford to live in, how about you build something that everybody needs??

Mortgage rates have doubled and grocery chains are gouging people for food.

Does anyone have any info on the Broccolini construction company? Are they in a similar rough position as other developers?

investors represent over 50% of the market and they ain't buying anymore. not to mention airBnB soon to be banned in ontario so thing are about to get real bad for them. looks like developer Vandyk on the verge of bankruptcy as well

Glad to hear it!

Hi, How we can Get That Developers Doc you showing in your video. Thanks

No building in the world should have more than six storey, it is as simple as that

I can’t but help laugh when I told a Lady from Toronto that Trudeau deficit spending will cause a Hugh correction in the housing market in Toronto Her answer was I don’t understand deficit spending

"and the economy should balance itself"

So if the developer is going bancrupt imagine home owners and ppl tryin to buy

well in the GTA area all these preconstruction townhouse complexes are mysteriously going up in flames. no one is investigating this and it seems fishy

I predict that eventually, some of these condo buildings will turn into government housing when oeoke are into able to afford their mortgage and rent. The city will buy up these buildings for cheap and turn them info affordable housing. If you take a look at most of the low income housing areas in Toronto, many of those highrise buildings didn't start out as Toronto housing buildings. They were condos that people ran away from when the area turned bad.

I live down the street from the Grand Central Mimico dev. Always thought it was a cool spot and excellent for commuters. But there hasnt been ANY progress in the last like 4 years. Its just half built land and potholes. Meanwhile, like 5 three-in-ones have gone up o the queensway in the same time pandemic be damned.

Looks GOOD on them!!!!

I'm seeing a lot of bad arguments in the comments section. The biggest problem consists of land use restrictions and zoning. This is encouraged by tax policy incentivizing homeownership, and when people pile in too much of their life savings into their home because they're incentivized to, they vote in favor of NIMBY policies that restrict new supply of housing to protect and increase the price of their home. NIMBY restrictions make building everything except for high-end housing uneconomical. Basically, the cost to build to regulatory requirements pushes up the cost to build above what could be charged for the unit and it doesn't get built. Markets are very good at allocating resources, but government and local control prevents meaningful change on this issue. Housing markets are like musical chairs, except the chairs vary in quality and you have to pay up for better units. If you build more high-end units, people in the currently existing best units in the area typically move up into the newer best building. Over time, if 1000 new units get built at the top end, that means that 1,000 people who would otherwise be living in the old best tower (now the second best) move up, and this process continues across an entire metro region. "Just build more housing" ought to be the motto.

Vanity project developers have done it to themselves with the aid of corrupt municipal leaders. Housing should not be a commodity as a standard rule. The people don’t want to feed the ever-expanding greed of the developers. Good on them, I hope the properties stay empty as a reminder of what toronto doesn’t need more of.

If there’s a housing shortage than why do I see so many listings piling up?

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

Government stops printing money…this is what happens

I keep telling people; the land at the S/E corner of Yonge and Bloor IS "cursed". It is an old native burial site known as "Sand Hill". The site was desecrated by English settlers/developers in the mid 19th century. Bones were scattered and mixed with mortar. The facts are documented in Henry Scadding's book Toronto of Old. The site is marked as "Sand Hill" on early maps.

Man it's unlivable unless you live with 10 people in one place lol

Inflation is a small problem the bigger picture to the problem is that the project is a LUXURY and the market for it is low at the moment. We have the homeless problem, people are leaving Toronto because it is too expensive for housing. Most people coming into Toronto are starting from scratch; therefore building affordable appartments would be a better move rather than a luxurious building. It is true that the project manager has many successes but that was prior Covid which affected the canadian population and the market stability.

Every time I hear luxury condo or executive property I want to puke. Like high end listings need such an over used catch phrase.

Housing prices are unlikely to significantly decrease until there is a substantial increase in housing supply. In Canada, there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2024 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable, but others say it's risky. Any advice?

Well said.

The real estate through out Canada had been overpriced since 1997. 🤓

The market is wide open for affordable development. Otherwise, current prices are ridiculously too high!

It's just that building. I work high-rise and these guys under bid on an extremely complicated to build project. They ran out of funds half way because of it. The projects going bankrupt are bidding low trying to grab projects and end up shooting themselves in the foot.

sky tower basically has already been approved at the full height increase they asking for.

SQUWAK "TORONTOS A WORLD CLASS CITY" SQUAWK - john "the tool" tory

"Toronto Investment Developers are going bankrupt." Good. Its about time we had a crash.

Yes we just need Soviet bare basics housing. Russia can build these in three weeks. It's not complicated.

That is what happens when developers are getting to greedy Real estate prices everywhere are insane out of touch and the market needs a big adjustment When young people with higher education can’t afford a home than there is something terribly wrong with this I am a capitalist but this is the greedy bad side of the system and it needs to be stopped They will not do it on their own but a real down turn in real estate will

Wouldn't surprise me if they chop up the top floors into more affordable units.

Developers want condos so they get their profits out quickly but not building rentals. In Kitchener over 70 %are condos. They buy up old houses 10 at once if they can, evicting poor !

the keyword is a shortage of "affordable" housing in Toronto. not many new immigrants to Toronto can afford a condo north of a 1M let alone 3 or 4 million dollars.

Buckle up Toronto your in for a rough ride the bubble is about to bust

1:22 WHAT!? Mizrahi?? There is 100% some shady dealings with that company. They have a project in Ottawa, ON that makes NO sense. Thats all I'll say regarding the matter.

You love to see it.

Nuts in pricing real-estate, world recession / no jobs can sustain these prices in canada or usa. Will spiral 25% by next year as layoffs contribute to downfall and continue to drop to 40% as defaults and crazy high property taxes are unsustainable in following years. Thus liquidate and move to a low cost nation to dodge the turmoil, then come back in 4 years to pick up the affordable housing. Real Estate crisis every 10 years.

It would be great to build awesome housing for regular, non-wealthy, lumpy, normal, non-influencer prime who just need a decent place to live where they can minimize their environmental impact. Unfortunately, only the botoxed and/or wealthy are allowed access to good housing. Perhaps once more of them go into bankruptcy the developers will learn that they should broaden their market appeal to buyers who can't afford even half a million dollars for a primary residence.

obviously the reason to this is the small labor force across Canada.

A 2 bedroom 1000 sq ft concrete box sets you back about $2000 in rent a month, no new condo comes even close to good old apartment rentals. In this down equity market you can cover $24k a year rent with just $200k dividend portfolio at 12%. Squeezes out $600k or 300% premium than a $800k condo with a roof top swimming pool that no body ever uses

Don't worry , as usual money laundering will save the day.

The developer in Vancouver will probably be Amacon.

I wonder how many airb&b they can cram into that building

Not sure why they would still be investing in luxury properties. Luxury market is dead. They can make billions on affordable housing, though.

Mizrahi bit off more than they can chew with this one but did run into unforeseen circumstances. I suspect the Surety Bonds will be triggered and ensure this gets completed.

What’s gonna happen to that half done structure now?

Wow - I get inflation is a key here but the cost of construction rose significantly after 2020, I wonder why?