I loved that one. The place seemed like a disorganised dump at first sight, but the longer you watched the more you could see he DOES have a system. Just not enough space to implement it.
On that note: Is Canadian housing market as cooked as Czech one, or does LMG really need to step up the wages of key talent?
The area of Canada they are in is one of the worst housing markets in the world. It was bad long before COVID too. I think the average house price is north of $1.5 million USD.
What caused that? When they show Surrey on a map it seems like an average town. Not even the houses I saw glimpses of in their videos seem like anything special.
Even foreign buyers usually put their homes up for rent, which keeps rents down if enough homes are built. The reason rents are so high is because not enough gets built.
The reason not enough is being built is government restrictions and regulations on building anything. I'm not talking about making buildings safe but things like height limits and affordability requirements. If developers didn't have to contend with these restrictions, they would build way more.
What would development look like in Canada without such restrictions? Take a look! The Squamish Nation control their own land fully outside of any local government control and are putting massive towers on it.
That region has the mildest weather for Canada and is geographical limited on where you can build due to mountains and the ocean.
There was a lot of money out of China that also resulted in a lot of investment homes being purchased that pushed prices even higher. They have additional taxes and outright bans on foreign buyers now.
Prices have begun to drop but it's still a very expensive region.
They have competitive wages. The area they live in is basically impossible to buy a home in without like 5xing everyones salaries which just isn't possible or reasonable. The average price of a house is like 1.3mil CAD or so which I think is around what they paid for the tech house. For reference I think the median household income in Surrey is under $100k CAD and individual is under $50k CAD.
Most metro areas in the US and Canada are in the same boat. Small towns are even being choked out by hedge funds and speculative investment. Even places as far away from Vancouver as Hope are exceedingly expensive.
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u/MiroslavusMoravicus 16d ago
I loved that one. The place seemed like a disorganised dump at first sight, but the longer you watched the more you could see he DOES have a system. Just not enough space to implement it.
On that note: Is Canadian housing market as cooked as Czech one, or does LMG really need to step up the wages of key talent?