logo
Joel Kotkin: Carney's Canada will devolve into feudalism

Joel Kotkin: Carney's Canada will devolve into feudalism

National Posta day ago

Article content
In this shift towards oligarchy, homeownership and investment profits play a major role. This is particularly true in terms of housing, where the Liberal Party has long championed 'urban containment,' a policy that seeks to limit suburban and exurban development while promoting dense urban growth. The result, notes a new study by demographer Wendell Cox, has been housing prices that, in terms of the relationship between median home prices and household income, are increasingly out of reach for the average Canadian.
Article content
Immigration, key to Canada's population surge, has contributed to this shortage. While the country's working population swelled by a record 3.7 per cent at the start of this year, housing starts remained essentially flat. At one housing start for every 4.9 people entering the working-age population, 'there is no precedent for a housing supply deficit of this magnitude,' notes National Bank of Canada economist Stéfane Marion. The biggest losers have been people under 40, for whom the homeownership rate has dropped to around 50 per cent, almost 10 per cent less than a decade before. It also helps to have wealthy parents who own a home; children of homeowners are twice as likely to acquire a home as those who do not.
Article content
If you wish to live in Canada's two great international cities, and are not of aristocratic stock, it's getting tough to get shelter. Four of the six major markets in Canada have a median multiple — a ratio of the median house price by the median gross (before tax) annual household income — of 5.4, considerably higher than the US's 4.8. Vancouver now ranks fourth among all anglophone markets at 11.8, behind Hong Kong, Sydney, and San Jose. Toronto, at 8.4, stands as the second-least affordable market in Canada and ranks 84th out of 95 markets in international affordability, with a severely unaffordable median multiple of 8.4. As late as about 1990, national price-to-income ratios were 'affordable,' at 3.0 or less in Australia, Canada, Ireland, New Zealand, the United Kingdom, and the United States.
Article content
This pattern severely restricts homeownership, which has been declining since 2021. Not surprisingly, rates are lower in both Vancouver and Toronto than in much of the country. Clearly densification, the preferred growth option of the elites, does not help a housing shortage or reduce prices as Patrick Condon of the University of British Columbia has shown. Indeed, now Vancouver is now producing less-than-half the housing units needed to meet demand, one reason for the high prices even in a weak economy. Condon, an eloquent advocate of densification, cites the 'indisputable' evidence that 'upzoning' increases the value of land (by increasing the development value).
Article content
Concentrations of property and wealth are likely to worsen under the renewed Liberal regime. Planners and climate activists, as in California, a place which almost rivals Toronto and Vancouver in their progressive domination, will likely get even stronger with 'net zero' devotee Carney in charge. Similarly, industries that tend to create high-wage jobs, notably in oil and gas, will find themselves constrained, leaving the big money to financial institutions and those firms who rely on protectionism to shield themselves from both Chinese and American competition.
Article content

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Beer Store announces more store closures across Ontario. Here's when and where they will happen
The Beer Store announces more store closures across Ontario. Here's when and where they will happen

CTV News

time34 minutes ago

  • CTV News

The Beer Store announces more store closures across Ontario. Here's when and where they will happen

The Beer Store has announced it will be closing 10 more locations across Ontario this summer, including six in the Greater Toronto Area (GTA). In a release issued on Monday, the retailer said three locations in Mississauga—2925 Eglington Ave. W, 3154 Hurontario St., and 65 Queen St. N—will all close effective Aug. 10. Also closing on Aug. 10 are locations at 2934 Finch Ave. E in Scarborough, 1470 Major Mackenzie Dr. in Vaughan, and 1431 Rebecca St. in Oakville. 'We made the difficult decision to close these retail locations,' Ozzie Ahmed, The Beer Store's vice president of retail, said in the release. 'We will continue our focus on what we do best, ice-cold beer, great customer service and a world-class recycling program that last year returned more containers than we sold.' Stores in Amherstview, Cambridge, Iroquois Falls, and Tottenham will also close on the same date elsewhere in the province. The Beer Store says 'all efforts' will be made to support employees through the closures. It is unclear how many employees will be let go, or if they will be moved to other nearby branches. This is the latest in a series of closure-related announcements that the retailer has made since the start of 2025. 'Modernizing operations in a changing marketplace is never easy, we know this will be difficult news for customers and employees,' said Ahmed. The newest round of closures follows the province's move to expand alcohol sales to corner stores across Ontario, which saw Premier Doug Ford broker a new deal with The Beer Store to get done. Part of the new agreement includes keeping at least 386 stores open until July 2025 and at least 300 until Dec. 31, 2025. Nearly 40 stores have been closed or scheduled for closure across the province so far this year. With files from CTV News Toronto's Alex Arsenych

Moncton launches review of municipal plan, seeks public feedback
Moncton launches review of municipal plan, seeks public feedback

CTV News

time35 minutes ago

  • CTV News

Moncton launches review of municipal plan, seeks public feedback

Moncton Deputy Mayor Paulette Thériault, right, and Josh Davies, manger of long-range policy planning, are pictured. (Source: Derek Haggett/CTV News Atlantic) The City of Moncton is launching a review of its municipal plan and zoning bylaw to map out its growth guide for the next decade. Moncton's current municipal plan and zoning bylaw were adopted in 2014. The plan is reviewed approximately once every 10 years. 'The Municipal Plan is one of the municipality's most important documents, used to guide growth and development in the city,' a news release from the city says. 'The Zoning By-Law implements the policies that make up the Municipal Plan by establishing development rules for the city.' Deputy Mayor Paulette Thériault called the plan review a 'once-in-a-decade opportunity' for residents to shape the future of development in Moncton. 'I encourage people to take the time to participate in the public engagement events that will be held over the coming year to share their thoughts and ideas and help make the new plan truly reflective of our vibrant community,' Thériault said. The review process involves six phases, including exploration, development, refinement and completion. Residents will be able to participate in 'vision workshops' to share feedback on housing, cultural heritage, economic development, climate change and more. The first workshop will be held at Legends at the Moncton Coliseum from 2 p.m. to 4 p.m. and from 6 p.m. to 8 p.m. on June 17. More to come… Paulette Thériault Moncton Deputy Mayor Paulette Thériault, right, and Josh Davies, manger of long-range policy planning, are pictured. (Source: Derek Haggett/CTV News Atlantic) For more New Brunswick news, visit our dedicated provincial page.

N.B. auditor general finds outdated eligibility puts people at risk of not getting legal aid
N.B. auditor general finds outdated eligibility puts people at risk of not getting legal aid

CBC

time41 minutes ago

  • CBC

N.B. auditor general finds outdated eligibility puts people at risk of not getting legal aid

Some low-income New Brunswickers who need legal help with criminal or family matters may not be getting it because the criteria for legal aid eligibility haven't been reviewed for eight years, the province's auditor general says. Paul Martin reviewed the efficiency and effectiveness of the New Brunswick Legal Aid Services Commission in providing legal aid across the province between April 1, 2023, and Dec. 31, 2024. He concluded the commission is doing a "commendable job" in many areas, including the timely processing of applications, with 84 per cent approved or denied within a week, and the consistent application of financial eligibility criteria. But "lack of timely review of the eligibility grid may contribute to the risk that [the commission] may not be fulfilling its mandate to serve low-income individuals as intended," Martin said in the report tabled Tuesday in the legislative assembly. Almost 500 applications denied The Legal Aid Services Commission provided full legal representation on 5,727 criminal and family cases in fiscal 2023-2024, according to the report. Its scope of service includes criminal charges that come with a likelihood of incarceration, as well as a variety of family law services, such as child custody and access orders, child and spousal support, divorce in some circumstances and some emergency protection and intervention orders. Of 8,717 applications, 498 — or six per cent — were deemed financially ineligible by an intake officer. "Legal aid plays a vital role in ensuring low-income individuals are provided fair and equitable access to justice," Martin said. He also found no formalized financial appeals process, and people who did appeal were not treated consistently, according to the first volume of his 2025 performance audit, which also includes chapters on public housing maintenance and N.B. Power's early retirement program. For example, of the 140 appeals, 14 applicants were approved with an income of more than 10 per cent above the threshold, while 15 were denied despite their income being within 10 per cent of the threshold. In addition, the commission has not has not adequately analyzed whether the use of staff or private lawyers is more cost-effective, Martin said. A breakdown of hourly rates in the report indicates staff lawyers cost nearly twice as much for criminal defence and more than three times as much for family cases. Recommends review of eligibility The financial grid used to determine eligibility for legal aid services has not been updated since 2017, Martin said. The tiered grid considers gross income, allowable deductions and household size. Depending on the applicant's income and household size, if deemed eligible, they may be required to make a contribution to their legal costs of either $150 or $250. He recommends the commission establish and implement a review process for the financial eligibility grid to ensure it's fulfilling its mandate as intended. The commission agrees, but said it will take some time to provide proper analysis. It hopes to have that complete by Year 2, it said. Other recommendations Among Martin's other five recommendations are consistent application of financial appeals, and value for money in service delivery. The commission agrees with all of them, with one already completed and targeted implementation dates for the others ranging between ongoing and by Year 3. The commission operates at arm's length from government. It's governed by a board of directors and reports to the legislature through the Department of Justice and Public Safety. Its 2023-2024 budget was about $14.2 million, with $13 million of that provided by the province.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store