The world continues to move on from the effects of the pandemic on the global economy and major industries. However, the real estate industry in particular is one that is still facing severe, and often volatile, consequences. These are as a result of several tumultuous years of quarantine. Between the commercial, industrial, and residential sectors of the country’s real estate, the scale of major shifts in Canada’s real estate industry has been widespread. However, this has been unanticipated by many professionals. Especially those who were not paying close enough attention to modern trends before the pandemic hit.
As someone who has understood throughout his career the value of keeping a close eye on modern economic shifts and trends, especially when it comes to the real estate industry, Semion Kronenfeld is among the few professionals who had the experience and knowledge to brace themselves for the changes brought to their industry by the pandemic. Those who have been able to use their wisdom to navigate the waves it has left on the current housing market are better off.
Carrying over from 2021, Canada’s residential housing market entered 2022 with an unpredictable force of rapidly rising and shifting prices and interest rates. Not to mention, consequentially tight chains of supply and demand for prospective homeowners looking for affordable housing. In fact, issues in the lack of affordability in Canada’s residential real estate market is one of the biggest threats to this market in the present day. One of the only solutions in sight the need for increased supply.
With an increase in the supply of housing opportunities for Canadians, affordability in the housing market may begin to improve. Although predictions for this type of decrease do not anticipate the bottleneck releasing any time soon. As it stands now, and Semion Kronenfeld confirms that, the majority of Canadians devote over half of their annual income to the financial obligations of paying for housing.
In order to begin to make improvements to the country’s problems in the housing market, one of the biggest aspects that has to change is the issue of supply and affordability. Currently, Ontario is the province that has the most severe issues of affordability and lack of supply. In fact, it is almost double that of the following two provinces, Quebec and British Columbia.
One of the strongest solutions on the horizon to make meaningful changes is to work on redeveloping existing infrastructures. This includes converting major industrial and retail buildings into multi-level housing units. Especially those that have drastically lower revenue after the effects of the pandemic.
In addition to significant changes in Canada’s infrastructure, the potential of incorporating increased cohabitation practices into the present-day housing market. This includes efforts such as multiple tenants sharing two-story homes and intergenerational families sharing a living space. These are among the most efficient solutions to housing problems. There is an urgent need to reduce the issues of supply and affordability across the country.
