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Questions and Answers
What are some of the contributing factors to the housing crisis?
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.
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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.
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