1 Questions
What are some of the contributing factors to the housing crisis?
How have housing prices in Toronto changed since the 90s, and what is the impact on middle-earning households?
Answer: Housing prices in Toronto have increased by 300% since the 90s, while median income has stayed the same. This means that it would take a middle-earning household 24 years to save for a down payment for an average house in Toronto.
Study Notes
- Housing crisis caused by competition for few homes and low wages
- Supply, wages, intergenerational wealth, financialization, and lack of affordable housing are contributing factors
- Toronto houses 300% more expensive than in the 90s while median income stayed the same
- It would take middle-earning household 24 years to save for a down payment for an average house in Toronto
- Average parental gift in Toronto for first-time buyer is over $130,000
- Financialization and speculation in the housing market contribute to skyrocketing housing prices
- Lack of affordable housing units is also part of the problem
- Home ownership becoming unaffordable for all but highest earners in Kitchener
- Rents increased by 35% and average housing prices increased by 88% in Kitchener between 2008 and 2018
- Only a third of people in Kitchener can afford to purchase the average resale house in the city.
Do you know what's causing the housing crisis in Canadian cities like Toronto and Kitchener? Test your knowledge with this quiz that explores the contributing factors, from low wages and intergenerational wealth to financialization and lack of affordable housing. Discover shocking statistics on how much it costs to buy a house or rent in these cities, and learn about the impact of speculation and competition on the housing market. See how much you know about this pressing issue affecting many Canadians today.
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