Real Estate

Cities in Canada worry about student housing vacancies as more universities go online

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  • May 23rd, 2020 6:16 pm
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Cities in Canada worry about student housing vacancies as more universities go online

https://www.freshdaily.ca/real-estate/2 ... es-canada/
There's still a chance that many Canadian universities will conduct at least some in-person classes in the fall, but landlords may find it difficult to find students to fill their rentals — and student towns may look emptier than usual this September.
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It's not only the rental, it's all ecosystem around the university. All those coffee shops, all those restaurants/fast-food, transportation, etc...
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In many cities, the university is the backbone of the economy. I went to McMaster University and I can tell you if online learning is continued, that city is done for.
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Agreed. I've read articles stating that smaller towns will "boom" with the "mass exodus" of people from Toronto. But will those people visit these student-centric establishments?
Isostar wrote: It's not only the rental, it's all ecosystem around the university. All those coffee shops, all those restaurants/fast-food, transportation, etc...
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At the end of the day, people still need to live somewhere. Given the pandemic, I imagine a lot of the students are just moving back in with their parents.
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Hyperbole.

There are many branches of Western Universities in China/Middle East. Why wouldn't they have just kept their kids there to begin with way before COVID? Wealthy families send their kids to foreign schools for the interaction and network, NOT just for the education.

9/11 and the backlash against Islam/Muslims didn't stop wealthy Arabs from sending their kids to European/American/Canadian schools. It just made them spend more to ensure safety.
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Don't forget that you can't teach everything online. Think surgery, arts, you name it.
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Will be good for professionals in the areas, mainly looking at Waterloo here?
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georgecantstandya wrote: Hyperbole.

There are many branches of Western Universities in China/Middle East. Why wouldn't they have just kept their kids there to begin with way before COVID? Wealthy families send their kids to foreign schools for the interaction and network, NOT just for the education.

9/11 and the backlash against Islam/Muslims didn't stop wealthy Arabs from sending their kids to European/American/Canadian schools. It just made them spend more to ensure safety.
What about poor families here? Isnt that still where most students come from? If I could've just lived at home and saved on rent then in my senior years then I probably would have. Most people only go to university to get a piece of paper that says "employable". Some work harder and pay more to get into a better school to get a piece of paper that says "more employable than that person".

If you can get a degree from U of T without having to pay Toronto rents then expect rental demand to drop around Toronto.

I do agree that foreign demand will be relatively inelastic......some of the very rich just send their kids to school here just so that they can buy Canadian property more easily.
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VanByTheRiver wrote: What about poor families here? Isnt that still where most students come from? If I could've just lived at home and saved on rent then in my senior years then I probably would have. Most people only go to university to get a piece of paper that says "employable". Some work harder and pay more to get into a better school to get a piece of paper that says "more employable than that person".

If you can get a degree from U of T without having to pay Toronto rents then expect rental demand to drop around Toronto.

I do agree that foreign demand will be relatively inelastic......some of the very rich just send their kids to school here just so that they can buy Canadian property more easily.
What are you trying to say in here by quoting someone post about international students? I don't think you truly understand why sone wealthy international students are buying properties in Canada, their ultimate motive is to get their Canadian passport aka to buy a better life in Canada with their parents wealth. Overall in general this is not a bad thing because there is an influx of wealth moving into this country.
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Silver1234 wrote: What are you trying to say in here by quoting someone post about international students? I don't think you truly understand why sone wealthy international students are buying properties in Canada, their ultimate motive is to get their Canadian passport aka to buy a better life in Canada with their parents wealth. Overall in general this is not a bad thing because there is an influx of wealth moving into this country.
My point was that demand from domestic students would likely decline; our universities are still mostly filled with domestic students. Haven't heard the counterargument for why that portion won't be affected.....not clear on why this forum only focuses on international students.

My last sentence about foreign demand for Canadian university demand being relatively inelastic aligns perfectly with your post so I'm not entirely sure why you framed your post as disagreeing with me.

"their ultimate motive is to get their Canadian passport" is true for some but not all. Believe it or not, but western universities are considered to be very respectable in eastern societies such as India and China. Many fully intend to move back. So while foreign student demand won't be impacted as domestic I'd still expect there to be a reduction if online becomes more reputable. I can only imagine that this allure will fade with time, however.

As an aside, I'm sure that all of the local young families who can't afford real estate are just THRILLED at all of the "wealth" coming into Canada. Sure, their life is substantially more difficult than it would have been 20 years ago but some other Canadian got a little bit richer....so who cares, right?
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Silver1234 wrote: there is an influx of wealth moving into this country.
THIS +1

We rather have money coming in than money going out.

Students contribute to the local economies greatly, even better if they're 'wealthy'. The more they spend, the more it supports jobs in construction, retail, food, manufacturing etc.

Buying up Canadian property is not all negative, it drives growth and wealth of communities.

Rent prices going down might happen, but that would probably be short term.
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VanByTheRiver wrote: As an aside, I'm sure that all of the local young families who can't afford real estate are just THRILLED at all of the "wealth" coming into Canada. Sure, their life is substantially more difficult than it would have been 20 years ago but some other Canadian got a little bit richer....so who cares, right?
So what's the difference between local parents giving down payment to their kids to buy their first property vs international students parents giving money to their kids to buy a property in Canada, both are from the bank of mom & dad, what's the point of discriminating the other as long as this money are here to stay.
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Silver1234 wrote: So what's the difference between local parents giving down payment to their kids to buy their first property vs international students parents giving money to buy a property in Canada, both are from the bank of mom & dad, what's the point of discriminate the other as long as this money are here to stay.
It compounds the wealth divide. It's hard enough when the majority of young Canadians require the bank of mom and dad, but when we're adding foreign wealth to the demand side of the equation then the bar is raised even further.
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VanByTheRiver wrote: It compounds the wealth divide. It's hard enough when the majority of young Canadians require the bank of mom and dad, but when we're adding foreign wealth to the demand side of the equation then the bar is raised even further.
Today's foreign students = tomorrow's citizen. Never forget that; especially when world leaders explicitly make immigration a central theme of their term.

The government doesn't care that you can't afford a house, they only care that there is a roof available over your head.

Lastly, there will never be a shortage of domestic students lining up to go to an A school. All of the Ontario based Universities are expanding their footprints. COVID-19 hasn't changed those plans.
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VanByTheRiver wrote: It compounds the wealth divide. It's hard enough when the majority of young Canadians require the bank of mom and dad, but when we're adding foreign wealth to the demand side of the equation then the bar is raised even further.
When ever someone bring up wealth divide in Canada I just chuckle, especially with so much taxes support so many different social programs in here to help the under class. You really need to travel more in order to experience what wealth divide truly is, go look at how the poor class live in China, Hong Kong, Vietnam and India etc. You will see your whining is so insignificant.
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VanByTheRiver wrote: It compounds the wealth divide. It's hard enough when the majority of young Canadians require the bank of mom and dad, but when we're adding foreign wealth to the demand side of the equation then the bar is raised even further.
There's always ups and downs, and every generation faces a new challenge.

Not EVERY foreign student comes from wealthy families, they may be just wealthy enough to come to school but after school they will work as much as the next Canadian, pay taxes and contribute to the economy.

Yes GTA home prices are sky high, rent as well but I see that benefiting communities outside the GTA like Kitchener/Waterloo, Ottawa, Barrie. GTA losing it's appeal if smaller cities have less traffic, same services, good schools, and affordable to live in.

Now with a good percentage of the population working from home, city folk are going to take a hard look at their itty bitty condo box....and see what they can buy far out. Don't need public transit corridors, highways, just need quality internet access.
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Silver1234 wrote: When ever someone bring up wealth divide in Canada I just chuckle, especially with so much taxes support so many different social programs in here to help the under class. You really need to travel more in order to experience what wealth divide truly is, go look at how the poor class live in China, Hong Kong, Vietnam and India etc. You will see your whining is so insignificant.
The wealth divide is rising and that's indisputable. Pointing that out is not "whining". Stating that it is not an issue because other countries have it worse is nonsensical. By that logic we shouldn't bother with educational standards because they're lower in some other countries. Looks like we can also stop worrying about the quality of our healthcare too - I hear it's also worse in some parts of the world.

The discussion was about the effect that online classes would have on student rentals. Why has no one bothered with that anymore? My point that rich foreigners buying Canadian houses isn't universally good was an aside yet it's all that you focused on
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georgecantstandya wrote: Today's foreign students = tomorrow's citizen. Never forget that; especially when world leaders explicitly make immigration a central theme of their term.

The government doesn't care that you can't afford a house, they only care that there is a roof available over your head.

Lastly, there will never be a shortage of domestic students lining up to go to an A school. All of the Ontario based Universities are expanding their footprints. COVID-19 hasn't changed those plans.
Yes I think that everyone is aware of that. I'd expect today's citizen to be the priority, however.

To your last point, I never said that students would no longer want to attend an A school. I said that a shift to online classes would reduce the need to rent nearby housing.
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Silver1234 wrote: When ever someone bring up wealth divide in Canada I just chuckle, especially with so much taxes support so many different social programs in here to help the under class. You really need to travel more in order to experience what wealth divide truly is, go look at how the poor class live in China, Hong Kong, Vietnam and India etc. You will see your whining is so insignificant.
By that same logic I expect to hear no whining from homeowners should real estate prices fall, or if property taxes go up in Ontario. After all, as a class they are privileged, at least compared to people living in, say, Timbuktu.

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