The Decibel
Four reasons why you can’t afford housing
Aug 30, 2024
Jason Kirby, a housing journalist from The Globe, delves into the pressing issue of housing affordability in Canada. He discusses how soaring prices, especially in cities like Toronto and Vancouver, are straining potential buyers. Kirby highlights the slower construction productivity post-pandemic and the impact of inflation on building materials. He also examines the reluctance of baby boomers to sell, creating barriers for younger generations. The conversation paints a stark picture of a challenging market that may hinder homeownership for years to come.
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Quick takeaways
- The alarming rise in homeownership costs in Canada has led many to spend over 60% of their income on housing expenses.
- Lengthy approval processes and rising construction costs significantly hinder the development of new housing units, worsening affordability issues.
Deep dives
Rising Ownership Costs in Canada
Homeownership costs in Canada have reached alarming levels, with the average homeowner spending about 63% of their income on ownership-related expenses like mortgage payments and utilities. In major cities such as Toronto and Vancouver, this percentage is even higher, at 84% and 103%, respectively, drastically exceeding the recommended guideline of 30% of income. This disproportionate relationship between home costs and median household income reflects a significant decline in housing affordability for many Canadians. As individuals struggle to cover ownership costs, reliance on financial assistance from family for larger down payments has become increasingly necessary, which is not feasible for all prospective homeowners.
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