Given how nice it is outside right now, some of you may be forgetting that Canada does have winter. And it is largely because of winter that we are the biggest foreign buyer of homes in the state of Florida (and the US as a whole for that matter). In 2024, Canadians bought over $2.4 billion worth of homes in Florida. And between April 2023 and March 2024, it is estimated that Canadians accounted for nearly 25% of all foreign home sales in the state (this is according to the National Association of Realtors).
Because of this strong demand, I would imagine that many and perhaps even most Canadians would tell you that being allowed to buy a home in the US — or elsewhere in the world — is a nice freedom to have. (Although demand is waning because of the strong US dollar and because of the current geopolitical climate.)
If we flipped this around and asked Canadians whether foreigners should be allowed to buy homes in Canada, I suspect that we might get a different leaning. And that's why there is the Prohibition on the Purchase of Residential Property by Non-Canadians Act (which is currently set to expire on January 1, 2027). This was and likely still is the politically popular thing to have in place.
Now, it could be the case that these two groups are mutually exclusive. In other words, the people who own homes outside of Canada (a small minority) do not overlap with the people who support a ban on foreign buyers (the majority). And so when looked at in aggregate, the majority of Canadians do in fact want this ban. That said, I would not be surprised if Canadians buy more homes abroad than foreigners buy homes in Canada, which would make our current policies, at the very least, mildly hypocritical.
Whatever the case may be, it is in the news this week that some of the largest builders in British Columbia have just sent a letter to our governments arguing that the foreign buyer ban and BC's foreign buyer tax need to be reconsidered — or modified to something that resembles Australia's model. (Australia restricts foreign ownership to newly constructed homes and pre-sales. Foreigners can't buy resales.) The letter was signed by 25 companies including developers like Amacon, Beedie, Strand Development, and Westbank.
At the very least, I think there's a strong argument to be made that pre-construction and new home sales should be exempt from the ban. Most people probably don't appreciate that developers rely on pre-sales to finance the construction of new homes. It is significantly more challenging for end users to buy in this same way given how long projects take. We can certainly have a conversation about whether this is the optimal financing approach, but it is the way things work today.
So my view is this: If foreign capital wants to finance new housing and help increase our overall housing supply, that's a good thing. Let's take their money and use it to build lots more homes for Canadians. With this approach, foreigners won't be competing for our existing housing stock and, over the longer term, it is likely that most of these pre-sales will end up as new rental supply or as a resale home for Canadians.
The alternative is building fewer new homes, waiting until there's a worse housing shortage, and then turning the industry back on to deliver new homes in 5-7 years.
Cover photo by Denys Kostyuchenko on Unsplash
Let's talk some more about garbage.
Manhattan Community District 9 has just become the first neighborhood in New York City to containerize 100% of its trash. This is being done through a pilot program that now requires all residents to dispose of their trash into either an individual bin (the kind you'll find in most cities) or a new "Empire Bin." Empire Bins are required for buildings with more than 31 units in the pilot district. Properties with 10-30 units can choose whichever bin they want. And properties with fewer than 10 units have to go with the smaller individual bins.
The new Empire Bins look like this.
These are stationary bins that live on the street and take up about half a parking space each. Each bin is also assigned to a specific property and can only be accessed by building staff using an access card. So these are not general purpose bins. In the pilot area, there are some 1,000 bins, replacing hundreds of parking spaces. And if this were to be expanded citywide, it is estimated that it would require the removal of more than 50,000 on-street parking spaces.
In this instance, the use case is different than what we spoke about last week. The problem is not that large garbage trucks are taking up too much space inside of main street buildings. The problem is that these spaces don't exist, and so NYC has had to default to an approach that is remarkably efficient for fostering a vibrant rat population: collect rat food, place it in easily accessible plastic bags, and then set it out on the street like a buffet.
These efforts are about containerizing the city's trash. And yeah, that makes a lot of sense.
As you know, Northern Virginia is now referred to as "data center alley." It has, by far, the largest agglomeration of data centers in the world. The latest figures are somewhere around 200 completed facilities and some 49 million square feet, with a lot more in the pipeline.
Here's the global top 10 list via Bloomberg:
Given how nice it is outside right now, some of you may be forgetting that Canada does have winter. And it is largely because of winter that we are the biggest foreign buyer of homes in the state of Florida (and the US as a whole for that matter). In 2024, Canadians bought over $2.4 billion worth of homes in Florida. And between April 2023 and March 2024, it is estimated that Canadians accounted for nearly 25% of all foreign home sales in the state (this is according to the National Association of Realtors).
Because of this strong demand, I would imagine that many and perhaps even most Canadians would tell you that being allowed to buy a home in the US — or elsewhere in the world — is a nice freedom to have. (Although demand is waning because of the strong US dollar and because of the current geopolitical climate.)
If we flipped this around and asked Canadians whether foreigners should be allowed to buy homes in Canada, I suspect that we might get a different leaning. And that's why there is the Prohibition on the Purchase of Residential Property by Non-Canadians Act (which is currently set to expire on January 1, 2027). This was and likely still is the politically popular thing to have in place.
Now, it could be the case that these two groups are mutually exclusive. In other words, the people who own homes outside of Canada (a small minority) do not overlap with the people who support a ban on foreign buyers (the majority). And so when looked at in aggregate, the majority of Canadians do in fact want this ban. That said, I would not be surprised if Canadians buy more homes abroad than foreigners buy homes in Canada, which would make our current policies, at the very least, mildly hypocritical.
Whatever the case may be, it is in the news this week that some of the largest builders in British Columbia have just sent a letter to our governments arguing that the foreign buyer ban and BC's foreign buyer tax need to be reconsidered — or modified to something that resembles Australia's model. (Australia restricts foreign ownership to newly constructed homes and pre-sales. Foreigners can't buy resales.) The letter was signed by 25 companies including developers like Amacon, Beedie, Strand Development, and Westbank.
At the very least, I think there's a strong argument to be made that pre-construction and new home sales should be exempt from the ban. Most people probably don't appreciate that developers rely on pre-sales to finance the construction of new homes. It is significantly more challenging for end users to buy in this same way given how long projects take. We can certainly have a conversation about whether this is the optimal financing approach, but it is the way things work today.
So my view is this: If foreign capital wants to finance new housing and help increase our overall housing supply, that's a good thing. Let's take their money and use it to build lots more homes for Canadians. With this approach, foreigners won't be competing for our existing housing stock and, over the longer term, it is likely that most of these pre-sales will end up as new rental supply or as a resale home for Canadians.
The alternative is building fewer new homes, waiting until there's a worse housing shortage, and then turning the industry back on to deliver new homes in 5-7 years.
Cover photo by Denys Kostyuchenko on Unsplash
Let's talk some more about garbage.
Manhattan Community District 9 has just become the first neighborhood in New York City to containerize 100% of its trash. This is being done through a pilot program that now requires all residents to dispose of their trash into either an individual bin (the kind you'll find in most cities) or a new "Empire Bin." Empire Bins are required for buildings with more than 31 units in the pilot district. Properties with 10-30 units can choose whichever bin they want. And properties with fewer than 10 units have to go with the smaller individual bins.
The new Empire Bins look like this.
These are stationary bins that live on the street and take up about half a parking space each. Each bin is also assigned to a specific property and can only be accessed by building staff using an access card. So these are not general purpose bins. In the pilot area, there are some 1,000 bins, replacing hundreds of parking spaces. And if this were to be expanded citywide, it is estimated that it would require the removal of more than 50,000 on-street parking spaces.
In this instance, the use case is different than what we spoke about last week. The problem is not that large garbage trucks are taking up too much space inside of main street buildings. The problem is that these spaces don't exist, and so NYC has had to default to an approach that is remarkably efficient for fostering a vibrant rat population: collect rat food, place it in easily accessible plastic bags, and then set it out on the street like a buffet.
These efforts are about containerizing the city's trash. And yeah, that makes a lot of sense.
As you know, Northern Virginia is now referred to as "data center alley." It has, by far, the largest agglomeration of data centers in the world. The latest figures are somewhere around 200 completed facilities and some 49 million square feet, with a lot more in the pipeline.
Here's the global top 10 list via Bloomberg:
And here's a map of existing (blue) and proposed (purple) data centers via Loudoun County, Virginia:
This has been an economic boon for Virginia. It's estimated that the data center industry contributes up to 74,000 jobs and $9.1 billion in GDP to the state each year. But along with these benefits come some trade-offs, one of which has to do with the region's built environment.
Here are two zoom-ins of an area to the west of Dulles International Airport:
These maps raise a question that is only going to become more important as time goes on: What's the best way to insert large insular boxes into the fabric of a city or suburb? Of course, in some ways, this is not a new phenomenon. The suburbs are no stranger to this kind of built form.
But it's unique in that these boxes are not meant to be experienced in real life. They're a physical manifestation of our online activities, juxtaposed against our offline lives. It's two different worlds colliding. And already, it may be more appropriate to ask our question in the opposite direction: What's the best way to plan a city or suburb around data centers?
And here's a map of existing (blue) and proposed (purple) data centers via Loudoun County, Virginia:
This has been an economic boon for Virginia. It's estimated that the data center industry contributes up to 74,000 jobs and $9.1 billion in GDP to the state each year. But along with these benefits come some trade-offs, one of which has to do with the region's built environment.
Here are two zoom-ins of an area to the west of Dulles International Airport:
These maps raise a question that is only going to become more important as time goes on: What's the best way to insert large insular boxes into the fabric of a city or suburb? Of course, in some ways, this is not a new phenomenon. The suburbs are no stranger to this kind of built form.
But it's unique in that these boxes are not meant to be experienced in real life. They're a physical manifestation of our online activities, juxtaposed against our offline lives. It's two different worlds colliding. And already, it may be more appropriate to ask our question in the opposite direction: What's the best way to plan a city or suburb around data centers?
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