Canadian Housing Crisis

The "Canadian housing crisis" is the term used to describe a lack of affordable and adequate housing for many Canadians. This has led to Canada becoming one of the most expensive places to buy a home. I found several reasons for the crisis. The first is obvious, high demand increases the supply problems. Canada is known for its good quality of life and low crime rate which has made it a desirable place to live. Canada’s free immigration policy allows people to move to Canada very easily. Investors are looking to make a quick buck. This creates multiple parties vying for the same small number of houses. Canada is known to have strict government regulations regarding building a home, which creates long delays and increases cost. Lastly, is affordability, it costs a lot of money to buy and own a home.

 

The average price of a home in Canada has rocketed to over $710,000. I found it interesting to see the provincial cost breakdown to purchase an average home.    

British Columbia: $948,266

Ontario: $851,478

Quebec: $538,190

Alberta: $491,937

Nova Scotia: $410,900

Prince Edward Island: $372,200

Manitoba: $362,137

Saskatchewan: $343,800

New Brunswick: $309,600

Newfoundland: $306,000

Another interesting fact for me was that one third of Canadians rent their homes. The following is the average monthly cost of renting an apartment or condo in the Western provinces.

British Columbia: $2,570

Alberta: $1,835

Manitoba: $1,638

Saskatchewan: $1,378

Since four out of every five Canadians are looking for homes in the same areas, it puts a lot of pressure on the market. This market pressure has led to an explosion in home prices in Canada. In Brandon there are huge communities of condos and townhouses being built everywhere. There are also big or small apartment blocks popping up on any piece of property that comes available. Although many of these apartments are low income, an affordable income housing crisis remains. In my condo community anyone that is selling is getting well above their asking price.  

I have never appreciated my home more than just recently when the temperatures dipped too extreme cold. My thoughts go to the people that live on the street. Homelessness is on the rise, and it is identified as the only option for some as a result of the housing crisis. I can't even imagine how the homeless manage at any time but definitely during the bitter cold.   

I have several friends that sell their houses and move into an apartment. They feel that they need to simplify their life. They can travel without worrying about their home. If they have a problem in their apartment, they just call the manager. One of the bonuses is that they downsize. They start to get rid of things, so their children don't have to. It helps put finances in order as the home has been sold. 

I believe most people dream of owning their own home. In some provinces that dream will never become a reality. When I started this blog, I just wanted to find out what "housing crisis" truly means in our country. The information is overwhelming. I knew the situation was bleak; the information about the cause is straight forward, the solutions not so much. The federal government has initiated the "Canada Housing Plan" which I hope helps. Everyone needs an affordable home.