Since 2018, average home values in Ontario grew by nearly $265,000, or 44%. That’s a larger increase than in any other province.
Ontario’s housing system has never worked worse for protecting affordability.
A typical young Ontarian now has to work 22 years to save a down payment on an average home – an increase of 6 years over the pandemic. To close the gap between prices and earnings, average home values would need to fall $530k (over 60%), or average earnings increase by 150% to $137k/year. Unsurprisingly, there’s been a 20% drop in the number of younger people who own homes… and their consolation prize for being locked out of the market is rising rents.
Ontario’s housing system has never worked better for producing wealth for homeowners.
Rising home prices generate big wealth windfalls for homeowners – especially older Ontarians who got into the market years ago. Of the 1 trillion in additional housing wealth gained since 1977, those over age 55 got 68%. Those under age 45 got 11%.