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Originally Posted by blankall
The point is that what qualifies as "modest housing" has changed dramatically. Also what qualifies as "younger people" is changing dramatically. My parents bought their first detached house, a brand new build, well before the age of 30. That was the norm. Our entire neighbourhood was filled with people who'd done the same thing. All new families. That's far from the norm now. Pretending that it's just some thing that every generation has had to adjust to is straight up facetious.
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I think we need to specify what point in time we are comparing to but from 1999 to 2022 the percent of income spent on owned housing didn’t really change
https://thoughtleadership.rbc.com/pr...217.1706276087
Percent income spent on rent did. This doesn’t account for the latest run up in housing cost and interests but I think if we are talking about generational challenges then we shouldn’t narrowly focus on the last two years. I like to use the household income as a metric because the increase in dual income family creates a consequence of increased housing prices and it’s also agnostic of interest rates vs capital cost, just comparing price to inflation misses this.
What has changed significantly is the cost of SFHs
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Renters dissave to a greater extent because they are grappling with higher living and debt-servicing costs, making saving for a down payment harder than ever. Only about one-third of Canadian income earning households earn enough to purchase a single-detached home on their income alone. This is a stark difference from 2005 when half of Canadians earned enough to purchase a home on just their income. More middle and upper-income earners could join the renting population if ownership affordability does not improve and more Canadians get priced out of the housing market.
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The answer to all of this is build more housing and it will naturally fix affordability.