Why do young people deserve compensation?
We could make housing more affordable by organizing policies around the goal of having home prices fall. Lower prices mean those locked out of ownership have a better shot at entering the market, and those enduring high rents see payments more in line with their earnings.
Why aren’t our politicians contemplating an option that would benefit so many?
Most political leaders judge their electoral success depends on protecting the wealth many older homeowners have gained from rising home prices – wealth they’re now expecting to use in retirement. There’s little appetite to disturb the ‘nest eggs’ of this strong voting demographic, even though older Canadians have the lowest poverty and highest wealth of all age groups.
Conversely, politicians shy away from restoring what younger people have lost – the dream that good homes should be in reach of what hard work can earn. Instead, young people are expected to endure the financial insecurity and anxiety that come with high rents and shrinking ownership opportunities.
The ripple effects are clear. Young people report less satisfaction with their lives, and are less hopeful about the future – particularly those living in the poorest households. Younger demographics have higher levels of poverty, and a growing share don’t expect to be able to afford to start families.