Home Ownership

Homeownership should be widely accessible to most Canadians. With home ownership out of reach, more people have trouble building economic security and wealth. These indicators track whether it is becoming easier to afford to buy a home.

Home prices have more than doubled since 1979 in Canada compared to income. Canada and Australia are unique in the OECD in this respect. The nature of Canada’s housing crisis is “made at home.” While asset inflation and the rise of unaffordable housing are taking place in other countries, the problem in Canada is significantly worse than it is in almost all peer countries. (Source: Missing Middle Initiative).

The financialization of housing in Canada has driven up prices and makes it harder for first-time buyers to enter the market. Since 2015, the gap between investors and first-time buyers has been closing. Asset inflation is creating more wealth for those who already own property and making it difficult for younger people to own their own home. (Source: The Bank of Canada).

As housing prices surge, family wealth increasingly determines who can afford to buy a home—or not. Between 2015 and 2024, the number of first-time buyers who received financial gifts jumped from 20% to 31% per cent, with the average gift now at $115,000. Together, wealth concentration and Canada’s housing crisis are exacerbating inequality within younger cohorts. (Source: CIBC Capital Markets).