“Rents in the GTA are up 20 per cent” makes us think all renters faced a 20 per cent hike. But that’s not true. The 20 per cent increase applies only on units advertised for rent . But they are a tiny share of all rental units. Most rental units in Ontario are regulated and the guideline increase is 1.2 per cent this year and 2.5 per cent next. The vast majority of GTA renters will therefore have a rent increase well below the rate of inflation.
In brief, over the past five years, most renters have faced modest rent increases and most owners have become better off. Is this really the stuff of a housing affordability crisis? Could it be the media are more interested in bold headlines and clicks than in analysis? Canada Mortgage and Housing Corporation seems to have wandered off in this direction, too. In June, it issued aestimating “what is needed to solve Canada’s housing affordability crisis.” But the only indicator of housing affordability it used was shelter cost as a share of disposable income when the average household buys the average house.
Not for those who are buying the house shown. For majority yes. Here is how we got here. !973 bgt condo 2br+den 950sq' $18,500 equal to 2 yrly income. 1980, TW lux 1800squ' $71.500 equal 3 yrly income. Today same TH 1.1 M. if you make 350K/y buy it for 3 yrly incm Affordable?