The “dramatic” gap between the cost of owning a home and the ability of Canadian millennials to afford one paints a “troubling portrait” of an expensive country, according to a new report.
Average home prices would need to drop by half -- some $223,000 -- to be affordable for the typical Canadian aged 25 to 34, or average earnings would have to double -- to $93,400 -- found the non-profit group Generation Squeeze in a study titled “The group stresses that “there is no silver bullet” to solve the dilemma. “Instead, silver buckshot is needed to address these issues across several fronts,” the report says.
Along with the Canada Mortgage and Housing Corporation , Generation Squeeze has adopted an affordability target of 2030. Affordability is assessed by CMHC standards as spending less than 30 per cent of pre-tax earnings on housing, and the ability to carry an 80 per cent mortgage on an average priced home. According to the CMHC, CanadianSaving for a home is now a potentially decades-long effort, the report says.
Toronto and Vancouver are often thought of as the only cities with unattainable housing, but the report makes it clear that the issue is widespread. In Quebec, prices need to drop $45,000 on average and earnings need to increase by 17 per cent to achieve affordability by 2030. In Alberta, prices need to fall $66,000 and earnings need to jump 20 per cent.
That is because of the new mortgage requirements which are way to difficult for young buyers to meet. This is just a type of insurance for banks, as if, they needed more protection!
Yup thanks the the great hoising market committee that oversees all this crap, ohya sure that house is worth a million bucks meanwhile its total worth is 250 thou.
They’ll invent subscriptions for houses.
Then rent or make more money. Problem solved.
Maybe if they worked hard like their ancestors did instead of wasting their existence by protesting everything under the sun, they could afford homes.
The price of exploding globalism & population growth encouraged by the Trudeau government