Just The Facts: Housing Affordability Just Gets Worse
Ottawa, ON – After promising the “most ambitious housing plan since the Second World War” to build half a million homes, Canada is barely building half that amount under Carney, and his own housing agency expects housing starts to fall another 18 per cent.
This was confirmed again with the CMHC reporting that housing starts decreased 6 per cent last month, while the number of units with approved permits fell 2.4 per cent. That’s as StatCan found that across Canada, the number of building permits was down 8 per cent in April.
The inability to get housing built is having a real impact: According to Ratehub, housing prices in St. John’s soared another $13,900 in one month, as prices in Hamilton and Ottawa lept $6,400 and $5,500, respectively. From Halifax (up $1,800) to Victoria (up $1,600), Canadians coast to coast saw housing prices increase in May.
In Vancouver, housing prices jumped another $2,700 in May to $1.1 million, while Toronto experienced a $2,400 increase to over $946,000. That has made housing even more unaffordable: the income needed to purchase a home in Vancouver is now $225,200 ($900 more), while a Torontonian needs to earn at least $195,720 (a $780 increase).
Those in Victoria need to earn $185,500 (up $600), while purchasers in Hamilton need $157,030 ($1,480 more annually), and even those in Montreal need a six-figure salary of at least $128,260. Other big increases in the income required to buy took place in St. John’s, skyrocketing $2,800, Ottawa saw a $1,260 jump, and Regina had theirs surge $990.
No wonder RateHub found that “Affordability conditions worsened in all Canadian housing markets in May.” After all of Carney’s announcements, it’s clear the only thing he’s delivered is less affordable housing.
It’s time to end the illusions and for Carney to start delivering results that make Canada affordable at home, self-reliant at home and safe at home.