In recent years, the affordability of homes has fallen faster in Ontario than in any other state, a new report by a Vancouver-based nonprofit organization said. Generation squeeze.
“During the first two years of the pandemic, the Ontario government presided over the worst affordable erosion of homes witnessed by Canadian provinces in the last two months,” a report dated May 2022 said. Stated.
“Even in the western part of British Columbia’s real estate, the gap between local earnings and average home prices did not widen as rapidly as in Ontario from January 1, 2020 to December 31, 2022. . “
Citing data provided by the Canadian Real Estate Association, the report shows that the average price of homes in Ontario increased by about 44 percent from $ 571,771 in 2018 to $ 871,688 in 2021.
Using data from the latest Financial Security Survey conducted by Statistics Canada, Ontario’s home ownership under the age of 45 has plummeted 20% since the 1970s, while layoffs have increased by 10%, according to the report. .. In the state.
The report reports that as young people are increasingly locked out of their homes, at the same time their “current housing safety and standard of living, and the ability to save for other future investments-their capabilities such as home ownership”. We are facing rising rents that are detrimental. ” “
The authors say that average home prices “need to go down $ 530,000” to allow young people (ages 25-34) to buy mortgages comfortably, based on typical earnings, that is, current. We conclude that it will be 60% of the value. A typical young man managing an 80% mortgage at current interest rates.
In addition, they say that the average young man needs 22 years of full-time work to save 20% on his home down payment. This is 17 years longer than when today’s seniors bought their first home.
In terms of rental prices, the authors state that Ontario’s two-bedroom homes now cost about $ 17,580 a year, compared to an average annual cost of about $ 10,401 in 1981.
The report also describes the role that the state government can play in addressing these issues, and explains the upcoming Ontario elections as important.
“While a single-level government is not responsible for the affordability of homes, state governments play a key role in setting policies, laws and regulations that shape incentives within the housing market.” It says.
“The June election is a decisive moment as the party platform will shape the budget and policies of the next government.”
A National opinion poll The Royal Lepage’s implementation prior to last year’s federal elections has shown that affordability of housing is an important issue among young voters.
In an Ontario poll, 46% of all respondents said that their position as a candidate for affordable housing influences who they vote for in federal elections. That number rose to 57 percent in the demographics of 18-34 years old.
The report provides recommendations on how Ontario leaders think about the crisis and how to deal with it, housing should be understood as a “human right”, housing first housing, then housing. It states that investment should be prioritized.
Its policy recommendations include stagnating prices to catch up with earnings and calling on Statistics Canada to “correct the false measurement of home price inflation that is signaling the wrong way.”
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Shane Miller is an Ontario-based political writer.