Canadians living in major cities like Vancouver and Toronto will need to seriously reconsider the idea of homeownership. As median selling prices surpass $1 million in some areas, housing chief Evan Siddall publicly admitted that the idea of homeownership is fading for some.
- Housing chief Evan Siddall said the idea of homeownership is fading for many citizens
- Toronto prices have grown 63% is the past 5 years, pushing many buyers to distant suburbs
- Prime Minister Trudeau recently introduced special taxes on foreign owners
- He also dedicated C$40 billion for public housing and low-income rent subsidies
“The dream of home ownership may be fading for some,” said Evan Siddall, president of Canada Mortgage & Housing Corp. “Housing affordability has become a serious problem in our major cities.”
Vancouver, for example, has the largest affordability gap in North America. The city’s median home selling price is over $1.1 million, while the median family income is only $63,944, making it the most unaffordable city in North America.
Canada homeownership decline for the first time in a decade, and high prices are to blame. Siddall said. Toronto home prices climbed a whopping 63% in the past five years, with the majority of growth focused in the past two. Vancouver prices have jumped 65% in the past five years, according to the Teranet-National Bank Home Price Index.
Canadian federal regulators have been attempting to cool the market for years now, but have not been successful. In addition to addressing lending standards, Prime Minister Justin Trudeau introduced C$40 billion in spending over the next decade for public housing and low-income rent subsidies. He also introduced a special tax on foreign owners.