Preparing for Rising Homelessness

I have an op-ed in today’s Toronto Star.  The piece stems largely from a policy paper I wrote on homelessness earlier this year, and that I blogged about here. In today’s op-ed, I argue that homelessness rises after a recession, but that there’s a lag effect.  To be sure, after the recession of the early 1990s, homelessness in Toronto (as measured […]

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What Hangs on Bedrooms?

The Conservatives apparently think that it is deeply intrusive for the state to count your bedrooms through the mandatory long form census. “Asked to explain why this matters to the core Conservative constituency, one senior Tory strategist said, on background: “It’s all about the nanny state. Why is it mandatory to tell the government how many bedrooms are in your […]

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“Teaming Up” with the Private Sector

Today’s Globe and Mail features an article about the University of Toronto’s plan to turn “to the private sector to solve their campus housing problems” for students.  In particular, the article refers to a plan whereby the U of T would become “the first university in Canada to erect a large tower offsite with private money.” According to the article, […]

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Social Assistance in Ontario

Two weeks ago, the report of a government-appointed panel on Ontario’s social assistance system was made public.  The report, entitled “Recommendations for an Ontario Income Security Review,” was written by the 11-member Ontario Social Assistance Review Advisory Council, which had been struck in December 2009 by the McGuinty government.  The Council had been asked to make recommendations on the “scope and terms of […]

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Altucher’s Home Economics

Among TV financial pundits, I enjoy watching James Altucher. I have particularly appreciated his advocacy of no-nonsense quantitative easing by the European Central Bank, as opposed to the half measures unveiled so far. (My viewership has not been systematic enough to form an opinion of his stock tips.) I was recently pleased to discover that he is also a prolific […]

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Carney Makes His Move

Further to my recent post on the last Monetary Policy Report  http://www.progressive-economics.ca/2010/05/11/the-bank-of-canada-and-the-recovery/ I cannot claim to be surprised that the the Bank of Canada has decided to begin to raise interest rates, albeit by an initial quarter point from  extraordinarily low levels. They are also returning to normal overnight money market operations which will tighten credit to a degree. I […]

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Recession’s Impact on Homelessness

I recently wrote a paper on the recession’s impact on homelessness, looking at Toronto as a case study.  I presented it on Friday at the Annual Conference of the Canadian Economics Association (May 28-30, Quebec City).  The paper’s title is “Calm Before the Storm,” as I believe that, based on the outcome of the last major recession in the early […]

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Housing Bubble Denial

Some puzzling comments in today’s Globe story casting cold water on the notion that there is a housing bubble.  The story makes the classic anti bubble argument that national averages conceal a lot of local variation, reflecting local conditions. http://www.theglobeandmail.com/report-on-business/economy/the-home-price-puzzle/article1475073/ “Toronto-Dominion Bank economist Pascal Gauthier says the diverse nature of Canada’s real estate market means a U.S.-style bubble is not […]

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The Housing Bubble

It is striking that, even while moved to concern and some action, the Bank of Canada and the Minister of Finance are still desperately afraid to admit that Canada is experiencing a housing bubble. One can go on and on about how difficult it is to spot a bubble. But, as Dean Baker has often argued with reference to the […]

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Reining in speculation in the housing market

This morning federal finance minister Flaherty announced a number of measures ostensibly aimed at reining in speculation in the housing market.  His announcement was typically well-timed to coincide with the Vanier Institute’s annual report on the state of Canadian family finances, which reports record high levels of household debt, growing inequality and housing prices increasingly out of whack with incomes. But […]

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BC’s Urban Housing (Un)affordability

A new study published today by the Frontier Institute for Public Policy finds that Vancouver has the most unaffordable urban housing market not just in Canada, but in all of Australia, Ireland, New Zealand, the United Kingdom and the United States. This conclusion is based on a very simple, yet effective measure of housing affordability: the ratio of median housing […]

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GDP: Cold Weather and Hot Real Estate

In October, Canada’s inflation-adjusted Gross Domestic Product (GDP) expanded by 0.16%, which rounds up to 0.2%. While a second consecutive month of growth is unambiguously good news, we should be concerned about the amount and type of growth. Amount of Growth Real GDP (in chained 2002 dollars) dropped from a peak of $1,241 billion in July 2008 to a trough […]

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Vancouver bids to be world’s greenest city

Last week, the City of Vancouver’s task force, the Greenest City Action Team, issued a plan for the city with short and longer-term goals and policy advice on achieving them. The report covers more than climate change, a good thing as it is important to identify win-wins that lead to improvement on other environmental, health and social objectives as we […]

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BC outlook: this is gonna hurt

Housing has been one of the major drivers of the BC economy in recent years. Low interest rates led to rising home prices and a psychology of “must get in before being locked out forever”; leading a housing bubble that had everyone in town swapping jaw dropping stories of bidding wars and outrageous prices paid. The economic driver was not […]

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Confessions of a Newspaper Economist

Declan picks up on Stephen’s suggestion that economists were too diffident to raise concerns about the real estate bubble: How to square the group of economists in the front pages of the paper offering a series of right wing prescriptions supported by neither fact nor theory with the economist unwilling to point out a housing bubble because it doesn’t fit […]

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Open Letter from Canadian Economists

The Progressive Economics Forum’s open letter is now making the rounds. Signatories include four chairs of economics  departments, two former Presidents  of the Canadian Economics Association, a former federal  Secretary of State (Finance), and  a former Quebec Minister  of  Industry. Here’s the text and the 88 signatories: Open Letter from Canadian Economists on the Current Economic Crisis and the Appropriate […]

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Reigning in the Mortgage Industry

I’m pleased to see the federal government are taking action to modestly reign in the wilder excesses of the Canadian mortgage lending industry. They propose to insure only loans with a 5% downpayment and 35 year or less amortization period – compared to tnhe status quo which permits insurance of no down payment 40 year loans. My recollection is that […]

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Federal Liberals on housing: then and now

The Wellesley Institute blasts the federal Liberals on housing: Earlier today, the Liberal Urban Communities Caucus released a powerful report condemning the Conservative government of Stephen Harper, and calling for strong action. Eighteen years ago, almost to the day, the National Liberal Caucus Task Force on Housing released a powerful report that condemned the Conservative government of Brian Mulroney, and […]

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What the homeless need …

 … is homes. Check out this astonishing admission, as reported by CBC: St. Paul’s in downtown Vancouver, one out of every four beds is being used to treat the homeless, drug addicts and the mentally ill, said [Lorna Howes, the director of acute and community mental health for Vancouver with the Vancouver Coastal Health authority]. We are spending money on […]

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The cost of homelessness

For the first time in years, I forked out a toonie to buy the Vancouver Sun this past Saturday. It must have been a guest editor for Easter or something because the banner headline screamed: The Cost of Homelessness: BC spends $644 million a year on services for those on the street. A study says the same amount would buy […]

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The Dynamics of Housing Affordability

http://www03.cmhc-schl.gc.ca/b2c/catalog/z_getpdf.jsp?pdfkey=2913653764704560038976021471679303982482875120909016402/65901.pdf CMHC have published a joint study with StatsCan on the dynamics of housing affordability, 2002 to 2004. Affordable housing is defined as paying more than 30% of household pre tax income on shelter costs. Annually published cross sectional estimates show that about 20% of Canadians were paying too much for housing in any given year over this period. This […]

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Housing and Homelessness in Toronto

From PEF member Nick Falvo, from today’s Toronto Star: City has a useful plan but still needs funding TheStar.com – comment – City has a useful plan but still needs funding January 15, 2008 Nick Falvo Over the past decade, media attention surrounding homelessness has been widespread, prompting Canadians to become increasingly concerned about a mounting social crisis. Shelter usage […]

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Is Big City Real Estate Overpriced?

The current issue of Maclean’s features a typically provocative cover on “Real Estate 2008.” The “Buy? Sell? Panic?” headline caught my attention because I am currently selling a place in Ottawa and moving to Toronto. The story inside Maclean’s is far more soothing, suggesting that there is no risk of a real estate crash in major Canadian cities because: sub-prime […]

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More on the Olympics and poverty in Vancouver

My office window looks out over Vancouver’s Downtown Eastside, an area notorious for being Canada’s poorest postal code. Back when Vancouver was awarded the 2010 Olympics, we pointed out that the world’s media would be stationed just ten minutes walk away from truly abject poverty, and when the cameras started rolling, it may not be gorgeous mountain backdrops they would […]

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Mortgage interest deductibility

Given the odd rumbling in Ottawa that the feds might make mortgage interest deductible from income tax, this article from the New York Times provides some interesting background on the origins of this deduction in the US, the impacts it has had, and the current state of play. The full article is rather lengthy; this excerpt captures some of the […]

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Homelessness prevention

The August issue of the Journal of Primary Prevention is dedicated to articles on homelessness, addictions and mental illness. It has a US focus but many of the problems will be familiar to Canadians, too. A guest editorial (pdf) kicks off the issue by scoping out the problem, with a good summary of studies on the hidden financial costs to […]

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The hidden costs of homelessness

are high, according to a new report, summarized by Gordon Laird in the Toronto Star: According to a new report from the Sheldon Chumir Foundation for Ethics in Leadership, Shelter: Homelessness in a Growth Economy, homelessness is costing Canadian taxpayers $4.5 billion to $6 billion a year. Canada in 2007 collectively spends more managing homelessness than it spends on international […]

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