More and more Canadian adults live in their homes, especially in markets where housing is expensive.
Wendell Cox, a city policy analyst and demographic principal in St. Louis, Missouri, said housing was affordable when the baby boomers were younger than they are today.
“Today’s home prices are four times higher than Vancouver’s income in 1969, and three times higher than Toronto 30 years ago,” Cox said in an interview.
“Vancouver has established a system that raises home prices more than any other investment, so it’s a good idea to put up a” welcome speculator “sign from Lions Gate Bridge. And don’t complain that speculators are coming and stripping you. What’s happening, and it’s happening in Toronto as well. “
Affordable gaps are indicated by other indicators. Historically, in English-speaking countries, median home prices were three times the median annual income, according to Cox.
“Currently, 13 times in Vancouver, 10 times in Toronto and almost 6 times in Montreal,” he said.
Online leger Research Last month, we found that out of 2,000 Canadian boomers, one in five lived at home with children under the age of 18 to over 30. This is most likely to be 24% in Alberta and least likely to be 14% in Atlantic Canada. These percentages were 28 in Vancouver, 26 in Toronto and 20 in Montreal.
“All the metropolitan areas around Toronto (Kitchener-Waterloo, Peterborough, London, Brantford) are all terrible because of all the extra demand that people leave Toronto.” Cox said.
“There is a huge outflow from Toronto, which currently averages 50,000 nets a year, and Statistics Canada says many of them have moved to places like other metropolitan areas due to low housing costs. . “
He says high prices have occurred following the changes in urban design that took hold decades ago.
“Everything is to draw a line around cities, city containment, green belts, agricultural reserves, etc. And you have ruined your housing market. Because you want to show the city in a particular way, It’s all planners who think they’re doing great things. “
Ontario’s Prime Minister Doug Ford has issued various messages about the development of the Greenbelt in southern Ontario. Cox says political backlash is the biggest hurdle for governments to think about changing land use.
“The answer is clear. You need to deregulate and make the market work. Unless you do that, you’ll blow the bottom of the housing market, and those who try it are no longer politics. I will not participate in, “he said.
Ian Lee, a business professor at Carleton University, said both he and his partner had an adult child who lived with them to save money for a down payment for the house. ..
“These are techniques for saving because the person loses his job and can’t afford the rent, or because the young person’s income is fairly modest. And they want to live and enjoy themselves. Living in a house means you don’t have to pay rent, which is important, or third, some young people can’t afford to buy a house until they have a down payment, “said Lee. ..
Part of this phenomenon may be due to immigrants from cultures accustomed to long-term intergenerational life. Lee suggested other possibilities.
“Some of the people who live in the house may have had some understanding with their parents. I will get the house.”
According to a Leger survey, nearly two-thirds of the baby boomer generation is paying off their mortgages, and many are ready to help the next generation. A quarter of the baby boomers said they would consider whether they already have money to give or lend to their children to help them buy a home. The percentage was the highest in Vancouver, at 34.
Twenty-one percent of baby boomers with children at home do not foresee them leaving. This percentage was 29 in Toronto and only 8 in Alberta.
“I really believe it will be better in the future. In Alberta, I think it will eventually improve, but in Toronto, [no one] We expect rents to plummet from $ 2,000 to $ 1,000 a month. “
Canada’s per capita homes are below the G7 average, with a shortage of 1.8 million new homes, according to a May report by Scotiabank.