This is very interesting – an explanation of the economics behind the increase in big, big houses in some Toronto neighborhoods, the subsequent conversion of many of them to apartments and rooming houses, and the more recent restorations back to single-family homes. The author, Dylan Reid, attributes it to cycles of income and wealth disparity: the decrease in single family occupancy of the big homes after WW 2 was due to reduced inequalities – the owners couldn’t afford to maintain their wealthy lifestyles. He backs up his argument with economic data from that era.
Recent gentrification is a result, Reid suggests, of increasing disparities of wealth and income.
I wonder what part of the changes in income inequality is due to the Baby Boom. For that I’d have to read Piketty’s original work and it’s a bit over my head.
Toronto’s affordable housing crisis has many facets. One of these many facets is the conversion – or rather, re-conversion – of big old houses in the older parts of the city that are full of relatively affordable rental apartments or rooms, back into single-family, owner-occupied homes. It’s a process that is no doubt affected by […]
Source: REID: Piketty and the decline of “dirty mansions” – Spacing Toronto