Canada's Real Estate Market is a Giant Pyramid Scheme
The northern frauds are about to lose all of their smart young people
“Baseball is America’s pastime. Canada’s is soft mortgage fraud.” — Daniel Foch
Millions of Canadian homeowners are now millionaires.
To be clear, they didn’t actually earn this money.
They just bought a house three to ten years ago, and are now watching their net worths skyrocket by robbing the poorest people in society via engineered inflation.
It’s not their fault, of course, but let’s be honest: They’re also not voting for parties and politicians who would reset the market to sanity and implement long-term affordable homeownership.
That would crush their unearned net worths.
No, they’re just being polite Canadians, quietly profiting from the racket like every over house-owner.
Sadly, some Christians are complicit in the game, too.
The debt-slave nation
The Canadian church is only just starting to wake up to the fact that millions of the neighbo(u)rs are suffering unnecessary hardship because of a lack of affordable housing. Churches can and should be selling off real estate, developing churches into mixed-use structures, crowdfunding new developments, and supporting Christian charities like Indwell. (Denominations should be starting new micro-nations while there’s still time, but that’s a story for another day…)
Unfortunately, most suburban churches have just rammed their heads in the sand, content to watch their personal property portfolio go up, up, and to the right.
You know things are bad when even Canadian real estate agents and mortgage brokers are sounding the alarm. These are the people whose entire incentive structure is to get people into more debt, and even they’re saying Canadian shelter prices are dangerously high.
Bear in mind that Canadian housing stock is atrociously poor in quality, essentially wooden sticks covered in vinyl siding:
Canada’s house prices have grown 800% faster than America’s.
The top bank regulator says Canadians have “speculative fever.”
New Brunswick house prices are up 33% since last year.
Houses that sold for $815k in 2018 are now topping $2 million.
Some 25-foot-wide houses in Toronto are now selling for $3 million.
Seventeen years ago, I bought a fourplex for $106,000 USD. Now, it’d sell for six or seven times that amount, even though inflation-adjusted wages are worth less than back then. No wonder Canadian household debt levels are the highest in the world.
Hyper-corrupt Canada’s real estate pyramid scheme is getting worse by the day, but don’t for a minute think it’s nearing a breaking point.
This lethal experiment is just a giant price test by banks and hedge funds to see how much money they can wring out of the Canadian working class via mortgage debt and crushing rents.
And it’s far from over.
Remember, you can win a majority with less than 40% of the national vote to completely control the Canadian Parliament, so as long as 40% of voting Canadians are homeowners, the collusion can and will continue as they silently refuse to vote in favor of affordable homeownership for all.
Only when the vast majority of voting Canadians are rent-slaves will they have enough votes to pass meaningful legislation… but by then, corporations will have such a lock on Parliament that they’ll drop the charade of democracy anyhow.
But none of this matters to young Canadians.
That’s because Canada’s outrageous crime against the poor has another long-term effect that no one is talking about:
High shelter costs drive away young, active, working contributors.
Refusing to be abused
Smart people don’t take crap from corporations and politicians anymore.
Our paleolithic ancestors built their homes on common land for less than 500 hours of work.
Our grandparents paid for their homes with less than 5,000 hours of work.
We’re paying banks at least 50,000 hours.
Gen Z and Gen Alpha aren’t stupid enough to shell out 100,000+ hours just to put a roof over their heads in ice-cold Canada.
Among the many writers I follow (who I absolutely do not agree with on most issues) there’s an insufferable libertarian offshore expert who calls himself Nomad Capitalist. His company’s tagline, however, is brilliant:
“Go where you’re treated best.”
Right now, Millennials and older Gen Zers are leaving the cities they grew up in, moving north and east in search of affordable real estate. There’s even a term for it: “Drive until you qualify.”
But friends, Gen Alpha is brilliant. I teach Sunday school, and my twelve-year-olds are light years more informed than we were at their age.
When these highly-capable kids hit the Canadian workforce in a decade, they’re going to look at the housing situation and go:
Yo, this entire place is stupid, I’m out of here.
Do you know why?
Because they don’t see color, they don’t care about Canada’s boring corporate culture, they have no qualms about ditching a hyper-individualist anti-society that fosters rootlessness, and they have zero interest in slaving to enrich a bankster or land-lorder their entire lives.
As the first we-all-work-exclusively-online generation, they’ll simply pack up their knowledge and skills and spending power and move to places where they can buy or rent affordably and build a real life instead of trying to late-join a pyramid scheme.
Here are all the top place they’re going to move: