Royal Bank of Canada report, 26% of Canadian households can't afford to buy a house

 -- High rates and prices make it less affordable to own a home in Canada, Royal Bank of Canada

In some markets, 80% to 102% of median income is required to own and maintain a house.

OTOH, in the US the Wall Street Journal reports on "The Rise of the Forever Renters."  The two reports discuss very different phenomenon.  One group can't afford housing at today's prices.  The other group, younger maybe, prefers access to amenities and programming.  

“We thought this was going to be a transition to owning, but in fact it’s not, it’s become a lifestyle choice,” says Ark Chairman Jordan Kavana.

From the article:

Americans who would traditionally be homeowners have become long-term renters, including some with no plans to ever buy a home. Renters are changing savings patterns, sparking new developments, and inspiring businesses, from contractors that help out with renovations for renters to high-end fixtures that are easily removed from one dwelling to the next.

... Sustained high interest rates in the U.S. have made mortgages unpalatable to many, though the Federal Reserve recently signaled an end to more rate hikes. There has been a dearth of inventory of homes for sale and there are more rentals available with luxuries that make life seem easy. About 64% of people in the U.S. are homeowners compared with about 89% of people in China and 72% in Brazil, according to a Euromonitor analysis.

Real-estate investor GID, which owns and manages about 50,000 apartment units across 30 markets in the U.S., says nearly a quarter of its residents earn over $200,000. 

“Not an income you typically would have associated with a renter versus homeowner, but that is increasingly the case today,” says GID Chief Executive Greg Bates. The influx of higher-income renters has in part led to a decline in the number of lower-priced rental properties available in the U.S.

... Brian Alvarez, the chief executive of a finance consultancy, pays about $3,200 a month including parking and utilities for a one-bedroom apartment in Tampa’s high-end Water Street complex. He appreciates that the building has a rooftop lap pool, dry-cleaning pickup and a concierge service to help residents secure restaurant reservations and event tickets. And he loves being across the street from the Amalie Arena, where he frequently sees concerts and goes to hockey games.  ...“This is a relatively low price to pay for all the things I want,” says Alvarez, 36 years old. 

... There were nearly 103 million people living in rental housing in 2022, according to an analysis by the nonprofit trade organization the National Multifamily Housing Council, a 15% increase from 2007. 

For decades, renting was merely a steppingstone for the upper and middle class before it was time to buy. And a home was considered a key asset that would appreciate over years and help its owner fund retirement. 

New subdivisions full of single-family homes for rent—all but nonexistent a decade ago—are springing up from coast to coast. More rentals are advertising themselves as kid- and pet-friendly and permitting renters to make extensive modifications to their spaces.

... Couch says her daughter, Mikayla, loves that the development they live in is filled with other children and offers two swimming pools, a packed calendar of social events and a clubhouse. Couch and her husband appreciate that it is located in a great school district—and that they don’t have to mow their own lawn.

New apartment buildings continue to escalate the battle of over the top amenities

When the now AvalonBay apartment building opened at 1st and M Streets NE, it took apartment building community amenities to the next level with a bunch of elements that no one else had:

- a section of the building was designed to accommodate dogs, with a side entrance to make it easier for taking the dog out for a walk
- a dog grooming lounge
- a large refrigerator at the front desk, for holding grocery deliveries
- a couple of band/music practice rooms with appropriate sound dampening to minimize impact on other areas of the building
- they were also supposed to be putting in a bike maintenance "lounge" too, although I never doubled back to see if it had been installed--it hadn't been at the time I went on the tour.

Since then, AvalonBay's AVA brand has added new community lounge elements and the ability of residents to do some in-unit customization, including painting--and AVA will provide the paint.

Image from HillNow.

While Notions Capital calls our attention to the opening of Station House (with an actual place-related name, since it's across the street from the Union Station complex) at 701 2nd Street NE because of the irony of the headline of the HillNow story, "Bowser Touts Affordable Housing in Luxury Building Near Union Station," this building's package of amenities has some new elements that take amenities offerings to another level also:

- a game room, including skee ball and ping pong tables
- a demonstration chef quality kitchen
- they have the requisite rooftop pool, but also a rooftop garden with sitting area
- and apparently a dog walking area on the roof as well

along with 10 electric car charging stations in the garage and other stuff.

Of the building's 378 apartments, 28--fewer than 10%--are set aside to be offered at "affordable" rental rates.