[HN Gopher] Thousands of young people are fleeing Toronto - econ...
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       Thousands of young people are fleeing Toronto - economists say city
       will suffer
        
       Author : outrun86
       Score  : 46 points
       Date   : 2023-10-08 20:44 UTC (2 hours ago)
        
 (HTM) web link (www.thestar.com)
 (TXT) w3m dump (www.thestar.com)
        
       | _spduchamp wrote:
       | I own second-hand clothing stores in Toronto and Montreal. From
       | what I see, Toronto is a rat race. I see people really struggling
       | to hustling to cover the costs of living. It stands in pretty
       | sharp contrast to Montreal where I see there are still some
       | affordable places to live and people have a bit more money to go
       | out and have a good time. That just from my perspective.
        
       | fatih-erikli wrote:
       | Question is where do they go and will they find a better place
       | than Toronto. I haven't been there, however it looks like a
       | reasonable place to live. There is everything a young person
       | would want. Everyone is fleeing everywhere then they don't find
       | what they were looking for then they flee back.
       | 
       | As a person living in the border of middle east, Toronto is a
       | place that people would like to migrate.
        
         | jfghi wrote:
         | Way too expensive
        
           | fatih-erikli wrote:
           | I think it's much more expensive to be a migrant. You do know
           | how to live cheaper in your native country. It's difficult
           | for a foreigner to learn those later.
        
             | Lalabadie wrote:
             | Natives know how to live cheaper in this country: move away
             | from Toronto.
        
             | tmpX7dMeXU wrote:
             | Seems like a false dichotomy to me.
        
               | fatih-erikli wrote:
               | - Spending money for language course
               | 
               | - You do not know the places for cheap prices
               | 
               | - Being a target for tourist scams
               | 
               | many other hidden costs I forgot to say
        
         | acc_297 wrote:
         | Just for context I live in Montreal about 6 hours east and have
         | _most_ of the same job prospects but just to quote the very
         | first source I found:
         | 
         | " You would need around 8,129.0C$ in Toronto to maintain the
         | same standard of life that you can have with 6,400.0C$ in
         | Montreal "
         | 
         | And I really do feel that as a recent graduate I pay for a 1
         | bedroom apt what some friends in Toronto pay to share a 5
         | bedroom house it's a big investment for a young person just to
         | live there
        
       | criddell wrote:
       | What's the solution? When a story about suburbs appears, the
       | ideas promoted by the Strong Towns group are mentioned. Is there
       | a similar set of ideas for fixing cities?
        
         | ilrwbwrkhv wrote:
         | Make the Canadian populace less timid and less risk averse.
        
         | ethanbond wrote:
         | Land value tax. Makes speculation infeasible and low-density
         | development uneconomical and eliminates the incentives that
         | drive restrictive zoning.
         | 
         | Also allows the public to capture the financial upside of
         | public infrastructure projects (e.g. building a billion dollar
         | subway _today_ produces a huge amount of wealth for the
         | landowners who happen to be near that project, in the form of
         | increased rent -- that can and should be captured by the public
         | who paid for it).
        
         | crooked-v wrote:
         | A simple starting point is changing local zoning that
         | implicitly or explicitly requires single-family homes in most
         | places. Even just allowing rowhouses would make for
         | significantly higher density in some places.
        
           | nemo44x wrote:
           | There's a place for that but one of the reasons many places
           | are desirable is precisely because there isn't so much
           | density and that everyone owns their properties. It stops
           | becoming nice when you change that too much.
           | 
           | And there's infrastructure. Places that weren't designed for
           | the density don't have the water/sewer, electrical, etc
           | capacity. Traffic too - now there's more traffic making a
           | place not as nice. So that needs to be sorted out too.
        
       | resolutebat wrote:
       | https://archive.li/2023.10.07-221402/https://www.thestar.com...
       | 
       | Original title, which does not imply that young people are
       | fleeing from economists: "Thousands of young people are fleeing
       | Toronto -- economists say the city will suffer because of it"
        
         | dang wrote:
         | Ok, we've changed to that (minus a 'the') above. Thanks!
         | 
         | Submitted title was "Thousands of young people are fleeing
         | Toronto, economists: city will suffer"
        
         | BlueTemplar wrote:
         | Can we _really_ be sure that economists weren 't involved
         | though ?
        
         | robswc wrote:
         | Idk, I find economists pretty scary with their big words.
        
         | motohagiography wrote:
         | Given they were policy problems, fleeing economists was pretty
         | accurate. I left the city and am looking at leaving the
         | province over the chaos of what are all government caused
         | problems with no path to getting out of the way for people to
         | solve them. Not a lot of Austrians or Chicago School economists
         | working in policy these days.
        
           | wolverine876 wrote:
           | Which policy problems and what was the result? It sounds like
           | lots of people and wealth and investment is moving in,
           | driving up prices.
        
             | motohagiography wrote:
             | The change is unmanaged. The question is whether they are
             | starting businesses that provide some semblance of the
             | quality of life and opportunity people from here had
             | planned to make for themselves or not, and whether the
             | government has just sold the locals out for foreign
             | political donations. We don't solve inequality by importing
             | more of it.
        
       | jncfhnb wrote:
       | Toronto is interesting. The scale of construction is immense.
       | Visibly unlike anything you see in the states. Presumably
       | drowning in immigration though.
        
         | Qwertious wrote:
         | >Presumably drowning in immigration though.
         | 
         | Do you have numbers that presumption is based on?
        
           | 3vidence wrote:
           | I have to go source my numbers but I think toronto is up to
           | 50% 1st generation immigrants. That's a very high percentage
           | for a small city.
           | 
           | Sorry on mobile best source right now is Wikipedia
           | https://en.m.wikipedia.org/wiki/Demographics_of_Toronto
        
           | voisin wrote:
           | You can Google the specifics but Canada has the highest per
           | capita immigration of the G20 according to our newspapers
           | (I've never checked the underlying data), and the vast
           | majority go to Toronto and Vancouver as our biggest and most
           | multicultural cities. I don't think OP's presumption is
           | misplaced.
        
         | s0rce wrote:
         | Apparently the scale of visible construction doesn't correlate
         | well with actual new units
         | 
         | https://twitter.com/evboyce/status/1678573678181728261
        
         | meowtimemania wrote:
         | it'd be nice to have that kind of construction in a lot of US
         | cities
        
         | huytersd wrote:
         | I would use the term "swimming in immigration".
        
           | wolverine876 wrote:
           | Indeed. Also, I wonder how it's affordable to immigrants but
           | not college graduates (from U. Toronto, no less).
        
             | huytersd wrote:
             | Because immigrants (Indians specifically) at least in the
             | US are highly educated/entrepreneurial and have no problems
             | finding a job as a result of which are very wealthy.
        
               | wolverine876 wrote:
               | There may be a lot of wealthy Indian immigrants in SV,
               | but you can also find many in different circumstances all
               | over the US.
               | 
               | (Which is not a criticism - I'd rather admit the poorer
               | immigrants, who need the change of scenery more.)
        
             | nemo44x wrote:
             | Because they're willing to stuff many people in a single
             | residence. Like 3 or 4 to a bedroom. I worked at a place
             | with many migrants and one group had like 10 guys staying
             | in the apartment and they more or less hot bunked the beds
             | as they worked across different shifts.
        
             | sanswork wrote:
             | Canadian college graduates are going to feel less happy
             | living with a bunch of other people to share the rent with
             | than immigrants who frequently are ok with
             | multigenerational households.
             | 
             | I left Toronto for an even more expensive area(Bondi) and i
             | see this here too with backpackers willing to live 6 people
             | to a 3 bed apartment while locals feel priced out at the 1
             | bed or studio level.
        
       | adaml_623 wrote:
       | I think Doctorow was correct with Walkaway.
       | 
       | I think young people will start building communities away from
       | the big cities. And their lives will be so much better
        
         | crooked-v wrote:
         | This is more like cities driving people out than it is people
         | intentionally deciding to leave. Most of the affordability
         | crisis here comes down to bad local zoning causing an extreme
         | lack of housing.
        
           | criddell wrote:
           | I'm not sure I agree with you. Toronto is already pretty
           | dense and there's a crazy amount of construction. I have a
           | hard time believing the problem is zoning.
        
             | sanswork wrote:
             | The core South of bloor is dense but outside of that with
             | exception to a few spots along Yonge and the 401 Toronto is
             | almost entirely single family housing.
        
       | WirelessGigabit wrote:
       | https://archive.ph/mdUQf
        
       | robswc wrote:
       | Escaping the city is one of the best things I ever did. So much
       | cheaper and the quality of life got so much better, for so many
       | reasons.
       | 
       | If I ever want to go do stuff, its only 30-40 minutes away too.
       | 
       | WFH has been liberating for so many people.
        
         | wolverine876 wrote:
         | What do you like better about your quality of life? Also,
         | personally, how do you feel about the level of activity?
         | 
         | I guess people who prefer city life are those who like the
         | faster pace, dynamics of more and more variety of people, art,
         | food, services, parks, festivals, etc. etc. Not that one
         | preference is better than the other.
         | 
         | > If I ever want to go do stuff, its only 30-40 minutes away
         | too.
         | 
         | Lol. Spoken like a suburbanite! :D Depending on where exactly
         | you live, everything in Manhattan would be within 30-40
         | minutes.
         | 
         | > WFH has been liberating for so many people.
         | 
         | Also, many cities see an increase in residents (but a decrease
         | in office workers). People like to work from homes in the city.
         | 
         | But I don't mean to be disagreeing. Glad you found what you
         | liked, and many have followed your path.
        
           | tmpX7dMeXU wrote:
           | Yes, different people have different desires when it comes to
           | their living situation. Your comment does however come across
           | as dismissive of living outside of a city. "Parks" for
           | instance...from my experience, a city would not be where I'd
           | first look for this.
        
             | wolverine876 wrote:
             | Sorry, I'm not trying to dismiss anyone. I do love cities,
             | but that's my thing.
             | 
             | > "Parks" for instance...from my experience, a city would
             | not be where I'd first look for this.
             | 
             | Cities often have all sorts of interesting and varied
             | parks, often beautifully designed, with public art,
             | museums, etc. Look at Central Park, Golden Gate Park, the
             | parks along the lake in Chicago, etc. Look up all the parks
             | in Manhattan alone. LA has wild valleys near the Hollywood
             | Hills. And if you look around, you can find lots of
             | wonderful, unknown, small parks. The economy of scale -
             | resources to design, build, etc. - can lead to some
             | wonderful spaces.
             | 
             | Obviously, out where there's more space, there are larger
             | undeveloped areas; those differ from urban parks.
        
           | sanswork wrote:
           | Toronto is such that you can go from the financial district
           | to farmland in less than 40 minutes.
           | 
           | It's a bit annoying living outside the core when you are
           | young since cabs are expensive and regional pubic transit
           | unavailable late but outside of that everything else is
           | pretty close to just as accessible you just have to plan more
           | in advance where when i lived downtown I could just be bored
           | one afternoon and go find a cool event
        
             | robswc wrote:
             | >I could just be bored one afternoon and go find a cool
             | event
             | 
             | Yea, I'd say this is probably the worst part about living
             | outside of a city. Just not as many events to go to easily.
             | At the end of the day though, the 30-40 minute drive isn't
             | too bad when its something you really want to go to and
             | plan for.
        
               | sanswork wrote:
               | Yeah and having a decent backyard can fill a lot of those
               | days too.
               | 
               | Also lots to do outside the city of you like nature.
        
           | robswc wrote:
           | >What do you like better about your quality of life?
           | 
           | Mainly, how the actions of others (good or bad) don't have as
           | much of an effect on me. Believe it or not, one of the main
           | things was people smoking weed. People would smoke it
           | endlessly. I attempted pretty much every solution before
           | moving. It smelled awful and got into my sinuses and would
           | make me get an instant sore throat. Similar to cigarette
           | smoke. I guess I'm allergic but basically if it got in my
           | respiratory system, my sinuses would be effected and make it
           | next to impossible to breath through my nose. This often
           | would then lead to sinus infections and always a sore throat
           | every night. I literally felt like I had a cold every other
           | day.
           | 
           | I moved apartments but the same damn thing happened. Now,
           | that could be bad luck or it could just be a new normal, I
           | don't care to find out though.
           | 
           | Also now, with an actual area to do "DIY" stuff, I can run
           | power tools and play guitar with amp without annoying anyone,
           | lol.
           | 
           | >Lol. Spoken like a suburbanite! :D Depending on where
           | exactly you live, everything in Manhattan would be within
           | 30-40 minutes.
           | 
           | My bad, by "stuff" I meant city stuff like shows,
           | entertainment, fancy restaurant, etc. For day to day, I'm
           | only a 5-10 minute drive. I've actually been saving a ton of
           | time in tons of ways you don't really consider. 1-2 hours of
           | groceries a week is better (at least according to my wife)
           | than 20-30 minutes every few days.
           | 
           | >Also, many cities see an increase in residents (but a
           | decrease in office workers). People like to work from homes
           | in the city.
           | 
           | That's good. Seems we all are getting what we want, thanks to
           | WFH.
        
             | wolverine876 wrote:
             | That sucks. IME, one needs to pay a bit of a premium to
             | live someplace where you can be assured of not having such
             | headaches (not that wealthy people are better neighbors,
             | but that problem-free residence is in higher demand).
             | 
             | It's interesting to see some people seek to be further from
             | others. I imagine it like particles in a given volume:
             | fewer particles collide less, while I happen to love the
             | energy of more (though not things like second hand smoke in
             | my home). To me, it's like going to a concert - I want it
             | to be wall-to-wall, not mostly empty. (Again YMMV.)
        
             | frank_nitti wrote:
             | I have the same experience in LA with the weed/tobacco
             | smoke, but also just all of the damn chemicals my neighbors
             | use in their daily life.
             | 
             | Before moving to the city, I expected the traffic and
             | crowds would be the primary drawback compared to suburbia.
             | But I've found that the smells and sounds of my own
             | neighbors' activities to be the worst, like running their
             | loud AC 24/7 even in winter, and spraying copious Lysol and
             | febreeze multiple times a day.
             | 
             | Love living in this city with all of the activities nearby,
             | but I'm 100% ready to gtfo and don't think I'll miss it.
        
               | robswc wrote:
               | Right!? I swear people know when to do it at the worst
               | times too. When I first moved, it was because they
               | triggered the building wide alarm system at 2 AM. After
               | that, I was sick of it and couldn't take it anymore.
               | 
               | Also, I get that you're going to smell food/odd stuff
               | from neighbors from time to time but there's only so much
               | you can handle.
        
           | criddell wrote:
           | Everybody is different, but what I like has changed a _lot_
           | over the past 35 years and I don't expect that to stop. The
           | city was the right place for me for part of my life, but
           | right now it really isn't. When I get old and need more
           | access to healthcare, it might be again.
        
             | wolverine876 wrote:
             | That seems like the typical pattern? City when you're
             | young, move to the suburbish place when you have a family,
             | and back to the city (in a different neighborhood) when
             | you're retired.
             | 
             | For retirees, especially when driving is a problem, all the
             | service, transportation, etc. can be great. Also, you have
             | time again for all the fun and want activity, unlike people
             | raising a family who barely have time to sleep.
        
       | xwdv wrote:
       | It's insane that Canada doesn't have true 30 year fixed
       | mortgages. Every 5 years the rates will update and if the payment
       | is too high for you there's nothing you can do about it. How can
       | you live?
        
         | granshaw wrote:
         | The US is one of the few countries in the world that HAS a
         | fixed mortgage longer than 5 years... we're the exception not
         | the norm
        
           | xwdv wrote:
           | I think Japan has a 100 year.
        
             | xw3098 wrote:
             | That was a thing during Japan's real estate bubble in the
             | 80s but I doubt any banks still offer that.
        
           | ManuelKiessling wrote:
           | Germany: fixed mortgages are the norm (actually never even
           | heard of another type), common runtimes are 10, 15, and 20
           | years, and no matter what the runtime is, as the borrower you
           | can simply exit the contract without even giving a reason
           | after 10 years; and that's not something in the contract,
           | it's a federal law.
           | 
           | You obviously have to pay back the remaining debt, but this
           | makes it super smooth to either pay off all debt in one go or
           | refinance.
        
         | voisin wrote:
         | It doesn't even seem to make sense from an economic standpoint,
         | leaving the population essentially to gamble and having approx
         | 20% of mortgages coming due each year, threatening the banking
         | sector.
        
         | Eddy_Viscosity2 wrote:
         | This system worked great while the rates were declining. But
         | now... less so.
        
           | voisin wrote:
           | In the US on 30 year fixed rates I understand you can
           | refinance down without penalty. Can someone confirm?
        
             | ethbr1 wrote:
             | Correct.
             | 
             | You're essentially paying to originate a new mortgage (with
             | the same originator as your previous or anyone else).
             | 
             | Proceeds pay off previous mortgage, and no one can really
             | tell you no.
             | 
             | I'm not sure if any US mortgage can have prepayment
             | penalties and be compliant? (for resale of the mortgage
             | debt)
             | 
             | Worst I've seen is "If you pay fully before X date, we'll
             | charge you the closing fees we comp'd you originally."
        
               | nemo44x wrote:
               | No mortgages don't have early payoff penalties. The bank
               | doesn't really care. They've probably sold your mortgage
               | off to be packaged in a bond anyways. They're mainly in
               | the business of selling loans. There's a big margin on
               | that. They're more than happy to payoff your old one and
               | write a new one and collect those fees.
        
             | curiousgal wrote:
             | Refinancing only works when the value of your house
             | increased.
        
               | xwdv wrote:
               | Which aside from a few moments in history, is pretty much
               | always the case. House values only go up.
        
               | gorjusborg wrote:
               | There's nothing about refinancing that requires your
               | house value to increase.
               | 
               | The concept is that you are taking out a loan to pay off
               | an earlier loan.
               | 
               | If you borrowed at 8% and rates dropped to 2%, you could
               | refinance even if your house price dropped, and it would
               | still make sense, as you borrowed what you borrowed, and
               | still owe it.
               | 
               | Now, if you are trying to refinance and take some money
               | out from equity, sure, that relies on having greater
               | equity than the loan value.
        
               | ptero wrote:
               | Not necessarily. It works if the value of the mortgage is
               | less than the value of the house, which is the vast
               | majority of cases.
        
         | tmpX7dMeXU wrote:
         | I also live in a country without full-term fixed mortgages,
         | however we also don't have a secondary market for mortgages.
         | AFAIK these two things are at the very least not entirely
         | orthogonal, and to be blunt I don't think anyone is looking to
         | the US as a source of inspiration for that aspect of your
         | mortgage system.
        
       | [deleted]
        
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       (page generated 2023-10-08 23:01 UTC)