As many of you know, I am an advocate for high-speed rail in Canada. Specifically along the Windsor-Quebec City corridor, which is the most densely populated part of the country. And so I found this comparison interesting:
"If there is one project that would create thousands of jobs, improve business productivity, clean up the air, reduce the output of greenhouse gases and cut the demand for endless highway construction, it would be high-speed electric rail between Toronto, Ottawa and Montreal, where population densities are high enough to make the project sensible. Cost estimates are all over the map. The University of Toronto’s Munk School of Global Affairs & Public Policy put the price tag at about $12-billion, which is $2-billion less than the bucks being thrown at the Volkswagen battery plant alone. But forget it – the Canadian government wants more cars, not fewer. Canadian cities will remain car sewers forever."
As many of you know, I am an advocate for high-speed rail in Canada. Specifically along the Windsor-Quebec City corridor, which is the most densely populated part of the country. And so I found this comparison interesting:
"If there is one project that would create thousands of jobs, improve business productivity, clean up the air, reduce the output of greenhouse gases and cut the demand for endless highway construction, it would be high-speed electric rail between Toronto, Ottawa and Montreal, where population densities are high enough to make the project sensible. Cost estimates are all over the map. The University of Toronto’s Munk School of Global Affairs & Public Policy put the price tag at about $12-billion, which is $2-billion less than the bucks being thrown at the Volkswagen battery plant alone. But forget it – the Canadian government wants more cars, not fewer. Canadian cities will remain car sewers forever."
The above excerpt is from this opinion piece talking about EVs and the public subsidies being paid to encourage battery production within Canada. I get that we want to be part of this important mobility shift. But we are way behind when it comes to high-speed rail.
And by behind, I mean that we don't have it at all in this country.
According to this annual survey by Henley & Partners (first chart from Bloomberg), these are the top 10 wealthiest cities in the world when you count the number of high-net-worth individuals (i.e. people with investable wealth greater than US$1 million):
However, if you instead count billionaires, the top city flips from New York City to the Bay Area (which includes San Francisco and all of Silicon Valley). This isn't all that surprising.
The above excerpt is from this opinion piece talking about EVs and the public subsidies being paid to encourage battery production within Canada. I get that we want to be part of this important mobility shift. But we are way behind when it comes to high-speed rail.
And by behind, I mean that we don't have it at all in this country.
According to this annual survey by Henley & Partners (first chart from Bloomberg), these are the top 10 wealthiest cities in the world when you count the number of high-net-worth individuals (i.e. people with investable wealth greater than US$1 million):
However, if you instead count billionaires, the top city flips from New York City to the Bay Area (which includes San Francisco and all of Silicon Valley). This isn't all that surprising.
We often talk about the challenges associated with smaller scale developments on this blog. They are difficult to underwrite, there are diseconomies of scale and, after a certain point, developers typically start to require a certain minimum size. In other words, if you have a big development machine with a lot of fixed costs, you probably don't want to build even 100-150 homes at a time. You want something like 250-300 homes as a starting point.
But there is something so great about small infill projects, which is another topic that we like to talk about on this blog. Take, for example, the above 10,940 square foot project at 6001-6009 Rue St-Hubert in Montréal. Designed by L. McComber, the project includes 2 commercial spaces and 8 homes (specifically, 2 studios and 4 multi-level "townhouses").
Using rough measurement approximations from Google Maps, the lot looks to be about 15m wide x 26m deep. So the lot itself is somewhere around 4,200 sf, which is effectively a double lot based on the prevailing frontages in the area. According to this rough math, I'm guessing the FSI (floor space index) of this development is somewhere around 2.5x.
It is certainly a beautiful project, but in my mind the two most noteworthy aspects of this development -- at least for this audience -- are the following:
The architect essentially acted as the developer. They wanted to build and then own their own office space, and so they now occupy the ground floor of this project. As a partial end-user of the development, this likely means that they underwrote it slightly differently compared to if they were a pure developer.
The project's circulation space is outside and is largely housed in a central open-air courtyard.
Here's what #2 looks like:
This second point about circulation is an important one because it's an effective way to reduce hard costs, improve overall efficiency (rentable/saleable divided by gross construction area), and lower long-term operating costs. Of course, exterior stairs/circulation are quite common across Montréal's walkups. So maybe this isn't all that novel for them.
But I still think it's a perfect reminder that we shouldn't use climate as an excuse. Montréal is both colder and snowier than Toronto. And just look how they're building. I would happily live here. Would you?
Also not surprising is the precipitous decline in the number of HNWIs residing in Hong Kong. From 2012 to 2022, the number declined by 27%. That said, a bunch of other cities fared even worse. The city that lost the most millionaires over this same decade was Moscow. It declined by 44%.
For those of you wondering about Toronto, we placed 12th, just after Chicago, with 105,200 millionaires, 193 centi-millionaires, and 18 billionaires:
The next city in Canada on the list is Vancouver, and following that is Montreal:
It is interesting to see how much further behind Montreal places with these metrics given that it is an urban region with about 1.6x the population of that of Vancouver's.
Also interesting -- given its size and global importance -- is Paris (18th when it comes to HNWIs):
However, when it comes to seasonal draw, Paris is second only to Miami, which appears to be the undisputed global destination for rich people in the winter. Paris has 126 centi-millionaire residents, but during its peak holiday month (presumably summer), this number is believed to increase to over 300:
Finally, looking at Park City, Utah, it has 8 permanent centi-millionaires and this number is thought to increase to over 100 during the winter snowboarding season. And to be clear, this transient population figure only includes people who own a second home there. It does not include rich people paying US$3,700 per night to stay at Deer Valley. That's pretty good for a small town of only 8,500 permanent residents.
To check out the full list of 97 cities, click here.
We often talk about the challenges associated with smaller scale developments on this blog. They are difficult to underwrite, there are diseconomies of scale and, after a certain point, developers typically start to require a certain minimum size. In other words, if you have a big development machine with a lot of fixed costs, you probably don't want to build even 100-150 homes at a time. You want something like 250-300 homes as a starting point.
But there is something so great about small infill projects, which is another topic that we like to talk about on this blog. Take, for example, the above 10,940 square foot project at 6001-6009 Rue St-Hubert in Montréal. Designed by L. McComber, the project includes 2 commercial spaces and 8 homes (specifically, 2 studios and 4 multi-level "townhouses").
Using rough measurement approximations from Google Maps, the lot looks to be about 15m wide x 26m deep. So the lot itself is somewhere around 4,200 sf, which is effectively a double lot based on the prevailing frontages in the area. According to this rough math, I'm guessing the FSI (floor space index) of this development is somewhere around 2.5x.
It is certainly a beautiful project, but in my mind the two most noteworthy aspects of this development -- at least for this audience -- are the following:
The architect essentially acted as the developer. They wanted to build and then own their own office space, and so they now occupy the ground floor of this project. As a partial end-user of the development, this likely means that they underwrote it slightly differently compared to if they were a pure developer.
The project's circulation space is outside and is largely housed in a central open-air courtyard.
Here's what #2 looks like:
This second point about circulation is an important one because it's an effective way to reduce hard costs, improve overall efficiency (rentable/saleable divided by gross construction area), and lower long-term operating costs. Of course, exterior stairs/circulation are quite common across Montréal's walkups. So maybe this isn't all that novel for them.
But I still think it's a perfect reminder that we shouldn't use climate as an excuse. Montréal is both colder and snowier than Toronto. And just look how they're building. I would happily live here. Would you?
Also not surprising is the precipitous decline in the number of HNWIs residing in Hong Kong. From 2012 to 2022, the number declined by 27%. That said, a bunch of other cities fared even worse. The city that lost the most millionaires over this same decade was Moscow. It declined by 44%.
For those of you wondering about Toronto, we placed 12th, just after Chicago, with 105,200 millionaires, 193 centi-millionaires, and 18 billionaires:
The next city in Canada on the list is Vancouver, and following that is Montreal:
It is interesting to see how much further behind Montreal places with these metrics given that it is an urban region with about 1.6x the population of that of Vancouver's.
Also interesting -- given its size and global importance -- is Paris (18th when it comes to HNWIs):
However, when it comes to seasonal draw, Paris is second only to Miami, which appears to be the undisputed global destination for rich people in the winter. Paris has 126 centi-millionaire residents, but during its peak holiday month (presumably summer), this number is believed to increase to over 300:
Finally, looking at Park City, Utah, it has 8 permanent centi-millionaires and this number is thought to increase to over 100 during the winter snowboarding season. And to be clear, this transient population figure only includes people who own a second home there. It does not include rich people paying US$3,700 per night to stay at Deer Valley. That's pretty good for a small town of only 8,500 permanent residents.
To check out the full list of 97 cities, click here.
