5 YEARS SEEMS LIKE SUCH A SHORT TIME
Who could have predicted the MASSIVE changes we would see in real estate investing, business, rental housing, ….
Back in 2019 Calgary and Alberta were still recovering from a recession that simply never touched most of the rest of the country. You could still rent a 3 bedroom house for $1800 (the whole house!) in and around Calgary. The overall real estate market story in 2019 was still about over-supply, and the unadjusted benchmark price was $418,500. 2019’s annual overall price point was down 3% from the previous year, and still down 10% since 2014! https://www.creb.com/News/CREBNow/2020/January/december_2019_calgarys_real_estate_market_caps_off_year_with_more_signs_of_stability/. It was very rare to hear stories of real estate investors losing money, or committing fraud; private lending was easy and highly unregulated.
Back in 2019 most of us thought “global pandemic” was something that happened back in the early 1900’s, before antibiotics were invented. We couldn’t imagine a world where we were told not to go to work, toilet paper was the hottest item around, and suddenly wearing a mask in public had nothing to do with robbing a bank. STEM was all the rage for new high school grads on 2019.
Justin Trudeau completed his first term as prime minister, and was re-elected for a second term. Rachel Notley started Alberta’s year, then we transitioned to Jason Kenney as premier. In June the Toronto Raptors won the NBA championship—the first time a Canadian team held this honour. Don Cherry was fired, and Hockey Night in Canada was forever transformed.
Global events included:
- The 2 Michaels were already being detained in China; international espionage/interference is just beginning to be exposed.
- Venezuela’s political unrest made headlines
- Narendra Modi scores a huge political victory in India
- Trump is president of the USA; no one yet imagines him leading an insurrection against his country—it’s all about MAGA.
- Boris Johnson rules in England as final preparations are being made for Brexit
- There are increasing protests in Hong Kong, and Finland elects the world’s youngest prime minister (34 years old).
- Taylor Swift and Beyonce already rule the music kingdom
- The last Volkswagen Beetle is produced (had to have something for the car buffs in here!).
- 11,000 scientists get together to produce an article about the global climate emergency
- AI still existed mostly in the movies
So much is different after just 5 short years! And this is such a small sample of world events.
In 2024, the Calgary benchmark price for April 2024 is $603,700. The average main floor rental of a house is approximately $2500 (minimum). Millions of dollars have been lost to unscrupulous real estate investors in multiple provinces. Private lending creates a visceral, fearful response for some people. We all pay much more attention to inflation numbers—and not just for toilet paper! Many people believe that building costs have doubled in just 5 years.
Luckily new leaders are starting to emerge. Many good and ethical people are working hard to find solutions for all levels of housing. High school graduates are starting to consider working in the trades again (slowly, but surely, and out of pure necessity to be able to afford a home).
Does anyone else find it a bit mind-boggling to try to envision what the world will look like in another 5 years?
