Canada Housing Affordability Gap

  • Average home prices would need to fall $341,000 – half of the 2021 value – to make it affordable for a typical young person to carry a mortgage that covers 80% of the value of an average-priced home at current interest rates.
  • Or typical full-time earnings would need to increase to $108,000/year – 100% more than current levels.
  • It takes 17 years of full-time work for the typical young person to save a 20% down payment on an average priced home – 12 more years than when today’s aging population started out as young people.
  • For those locked out of home ownership, the average rent for a 2-bedroom unit in Canada has reached $14,004/year, compared to average rents closer to $10,161/year back in 1981.

Canadian home prices relative to young people's full-time earnings

The numbers in Figure 8 illustrate the gap between average home prices in Canada and what is considered affordable for typical residents between the ages of 25 and 34, based on their typical earnings.

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