Indeed every new ownership apartment has become a diamond … we need a system that reconciles ballooning government fees with the shelter budgets of local families. It’s ironic that governments are increasingly pressuring developers to produce housing that meets the budgets of local incomes but won’t do the same with their Federal, Provincial, Regional and City taxes, costs and levies. We all need to sit around the table with a typical apartment development budget and sort this out. Key to all of this is the reality that we need to fund big municipal infrastructure differently. There’s a role for new partnerships between our fragmented political systems.
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Finally listening to this on my hike this morning. A must listen for anyone who wants more insight into how land economics really underlies everything we do on housing. Fav quote rhat really resonated: “If we have cities that say, well, when we increase the density on this site, we want three quarters of the new value of the property, and we're going to do the calculation based on sales price of just pulling it out of the sky, like $1,800 a square foot, which is insane, like luxury pricing, for the top, top, top end of the market. The person building that housing literally has no option but to sell that housing for $1,800 a square foot. Like, you have to. So I think our CAC system, inadvertently, has made every new condo a diamond, you know, by the demands of the local government, but then also all the other fees and levies on top. But I do think we really need to focus on how can we create reasonably affordable, attainable housing for middle income folks. And if we don't, all of those families are going to be, in a sense, stuck in the rental market, which isn't helping rental availability, affordability either.”
Former Canadian Armed Forces Officer | Championing bold and imaginative strategies for future-focused growth | Driving meaningful change in risk-averse environments
2wTo maximize profit potential of an idea, an organization should start with a strategic price, then deduct it's desired profit margin from the price to arrive at the target cost. Cost minus pricing and not cost plus pricing.