Dear Editor,
The struggle for affordable housing in North Bay is a story that's becoming all too familiar, not just locally, but across the country.
My personal journey over the last three years, marked by a life-altering event during the pandemic, has pushed me into a precarious housing situation, a plight shared by many. Despite financial advisors' recommendation that only 30% of an individual's pre-tax income should go towards housing, the stark reality I face is that the average rent consumes approximately 65% of my income.
This is a clear indicator that the situation has reached a point of unsustainability.
The principle of capitalism, driven by supply and demand, suggests that an increase in supply should lead to a decrease in prices. Yet, contrary to this notion, rental units in North Bay remain high-priced despite prolonged vacancies. The pandemic era saw many turning to real estate as a seemingly infallible investment avenue, exacerbating an already inflating market. As we emerge from the pandemic, the resultant economic burden disproportionately affects the lower-income demographic, exacerbating an already dire situation.
The investment frenzy in real estate, particularly during uncertain times, has created a paradox where the need for returns by landlords intensifies the affordability crisis for many. This dynamic raises profound questions about the sustainability of our societal structure, where a significant segment of the population is teetering on the edge of financial viability.
The comparison with investment trends in the United States is particularly telling. There, significant capital is often directed toward stocks, bonds, or entrepreneurship, fostering a culture of innovation and economic diversity. Conversely, Canada's overwhelming focus on real estate investment not only stifles innovation but also presents barriers to newcomers and disenfranchises long-standing citizens.
This real estate investment trend has broader implications for our nation’s economic health and innovation capacity. It signals a need for a shift towards more diversified and sustainable investment practices that do not compromise the fundamental need for affordable housing.
As we deliberate on new projects and community developments, it is crucial that we prioritize the pressing need for affordable housing solutions. The issue at hand not only affects individual lives but also has far-reaching implications for our economy and societal wellbeing. It's time for a collective reevaluation of our investment priorities to ensure a stable, inclusive, and prosperous future for all residents of North Bay and beyond.
Yours sincerely,
Gavin Pigeau
Long time reader and resident
