UtakataNoAnnex
Senior Member
To be clear, I would call profit margin sustainability. While greed would be something above and beyond that. Also see: Rules of Acquisition #2 & 10.
- Thread starter golodhendil
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Civdis
Active Member
I disagree, profit margin is profit margin, simply revenue minus all costs. Nobody was forcing buyers to enter the pre-construction market. If profits get exorbitant, more developers will enter the market, increasing supply and thus lowering profit margins until equilibrium (sustainability as you call it) is once again achieved. Housing in Canada is largely provide by the private sector in a free market system. It can be messy at times and tends to move in cycles.To be clear, I would call profit margin sustainability. While greed would be something above and beyond that. Also see: Rules of Acquisition #2 & 10.
Sorry for continuing the OT comments, I will stop now
ImmenselyMental
Active Member
Here are some photos I took of Forma on January 1, 2025:
TarpsTarps
New Member
Wow, nice tarps! Thanks
ImmenselyMental
Active Member
I appreciate the positive feedback for my photos. Pro tip: tarps appear more common in earlier stages of tower construction, as well as large infrastructure projects.Wow, nice tarps! Thanks
Photos of Forma from this afternoon, from the same vantage points:
TarpsTarps
New Member
Thank you, I appreciate this. The combination of soft plastic tarps with hard materials such as iron and concrete fascinates me. I see a kind of art in it, beautiful. If you have videos of it, I would appreciate it. Greetings, Marcel.
Undead
Senior Member
Thanks, we know what margins are. Like I told the other guy, I'm completely aware of everything you mentioned.
The fact remains that many units are approved, but not being built, regardless of the reason.
Some posters make it seem like the only reason shit is not being built is because of muni approvals.
I'm arguing this isn't the case and that there are many reasons driving lack of construction, that's it.
The biggest problem of course that many people still don't know or pretend not to notice, is excessive demand aka immigration policy from the federal government (and enabled by the provinces).
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stevedean
Active Member
So what's your grand idea Undead?
You want governments to force private developers to build housing even if they're losing money?
Northern Light
Superstar
That's clearly not what he's implying.
stevedean
Active Member
oh really? Because he says he understands margins, and then laments that there are unbuilt units. What point is he trying to make exactly?
UtakataNoAnnex
Senior Member
And no...that's not how it should be done.
...anywhoose, let's get back on topic with moar pics plz! Thnkx!
...anywhoose, let's get back on topic with moar pics plz! Thnkx!
Northern Light
Superstar
The discussion is/was contextual, if increasingly off-topic for this thread.
It was that the 'housing crisis' or lack of affordable units is not linked to further loosening of zoning regulations (which is not an argument against same). Its simply saying that under existing rules tens of thousands of units have approved zoning and are not under construction for the various other reasons outlined above (interest rates, market conditions etc.)
That's all.
Perhaps as @UtakataNoAnnex has noted above we can get this thread back on track before it is moderated to be so.
bilked
Senior Member
This idea seems to get batted around several different threads, but its dead wrong.
The majority of economists believe housing costs go up as a result of more restrictive immigration policies, not down. This is because the supply-side effects of taking immigrant (both legal and otherwise) labour out of the construction market outweighs the demand-side pressure of housing immigrants.
Here's a recent study:
Cracking Down, Pricing Up: Housing Supply in the Wake of Mass Deportation <br>
<p>US housing markets have faced a secular shortage of housing supply in the past decade, contributing to a steady decline in housing affordability. Most supply
papers.ssrn.com
And anther summary article:
Trump Blames Immigrant Surge for Housing Crisis. Most Economists Disagree.
When it comes to ESG, Republicans aren't so sure about capitalism.
esg.wharton.upenn.edu
Undead
Senior Member
@stevedean maybe you should read my posts more closely.
So why there still a severe shortage of construction labour despite excessive immigration the past few years?
Reducing "population growth" is absolutely a key part of getting the housing issue under control.
Mm yes, economists who are not paid to be right.
So why there still a severe shortage of construction labour despite excessive immigration the past few years?
Reducing "population growth" is absolutely a key part of getting the housing issue under control.
stevedean
Active Member
The fact is that prior to 2022 (when margins were healthy), there was no shortage of developments or units being built in this city.
Now, we're faced with higher financing costs, higher material and labour costs, and those margins are no longer healthy - and guess what?
Development is essentially drying up and new projects are failing at launch.
So you guys can go on and on and on about the reasons why housing isn't being built - when in reality the #1 reason is a lack of profit.
Now, we're faced with higher financing costs, higher material and labour costs, and those margins are no longer healthy - and guess what?
Development is essentially drying up and new projects are failing at launch.
So you guys can go on and on and on about the reasons why housing isn't being built - when in reality the #1 reason is a lack of profit.