There’s something strangely captivating about abandoned properties. The eerie stillness, the remnants of grand ambitions, and the stories they tell all contribute to a fascination that draws many, including myself, into this peculiar rabbit hole. It all started when I stumbled across a YouTube video by Bright Sun Films about Peter Grant’s mansion in Ontario, Canada. The narrative of a wealthy timber magnate unable to fulfill his dream captivated me. It’s a story that echoes across many abandoned properties worldwide.

My curiosity deepened when I watched a video on the abandoned Power Plant in South Boston — a place I had driven past countless times when I lived nearby. The familiarity of the location combined with its mystery made the experience even more compelling. So, when an article on Canada’s most incredible abandoned houses appeared in my feed, I had to click.

One property, in particular, stood out: the Crypto King Mansion. Despite its current state of disrepair, with broken windows and leaking roofs, the house's valuation was a staggering $3.1 million. The idea that a house in such poor condition could be worth so much was mind-boggling. It raised a question that has puzzled me for years: Why don’t owners of such properties sell them quickly to companies like Cash Offers Ontario? Selling for cash and moving on seems far more practical than letting a valuable property deteriorate.

This led me to explore Ontario’s real estate market. Was it like ours? Were home prices dropping, or did they also experience a COVID-induced surge like we did in the U.S.? I dug into a blog by Norada Real Estate Investments, which provided some fascinating insights. As of August, Ontario’s home prices had increased 2.2% year-over-year, with an average sale price of nearly $838,000. Meanwhile, Toronto saw a 5% decline in prices, with an average sale price slightly below $1.1 million. The data revealed that Ontario’s market was stabilizing after a period of wild volatility, much like what we’ve seen in the U.S.

What’s driving these prices? Government initiatives aim to increase housing supply amid a growing demand. Sound familiar? It’s the same story we’re living through here. Over the past decade, home prices in Ontario have doubled. While the region's population grew by 18.4%, home prices skyrocketed 101.7%. This disparity between population growth and housing price inflation mirrors the affordability crisis seen across the United States.

Ontario's challenges are strikingly similar to our own. Housing has become unaffordable for many, whether renting or buying. Builders are hesitant to start new projects due to profitability concerns. It’s a supply-and-demand issue, plain and simple. Demand exists, but supply is limited, and the cost of construction keeps developers from building more affordable housing.

The solution? It lies in increasing supply. One approach could be to streamline construction approvals for homes priced below 50% of an area’s average home price. For example, if the average price in a town is $800,000, red tape could be reduced for developments with homes priced at $400,000 or below. Additionally, government-backed financing programs could incentivize builders to create affordable housing. Another powerful strategy would be tax incentives for developers constructing below-market-rate homes.

If we truly want to solve the housing crisis, we might need to address the broader system. A radical but potentially transformative idea would be to phase out government-sponsored entities like Fannie Mae and Freddie Mac, leaving the VA loan program intact as the sole low-down-payment option. Such a shift would have to be done gradually to avoid a market collapse, but it could reduce reliance on government-backed mortgages, stabilize housing prices, and boost affordability.

At the end of the day, if a few people get richer in the process but more affordable housing is built, who cares? The bigger win is a future where housing is accessible for everyone. https://bostonrealestateinvestorsassociation.com/exploring-the-fascination-with-abandoned-properties/