By Ketki Saxena
Investing.com - A new report from Desjardins Group reveals that over a decade of soaring housing prices in Canada is drastically changing society, as younger Canadians are forced to leave their home cities due to unaffordable housing costs. The report also highlights how housing affordability woes are impacting major life decisions, such as delaying marriage and having children.
Desjardins' chief economist Jimmy Jean and his team write that the anxiety caused by housing worries goes beyond just choosing where to live and whether to rent or buy. Statistics Canada has also previously noted that housing affordability and rising house prices have disproportionately influenced young people's decision to move.
Statistics Canada has also previously noted that housing affordability and rising house prices have disproportionately influenced young people's decision to move.
In another way that the housing affordability crisis appears to be impacting Canadian demographic trends, the report points out an increasing share of Canadians aged 15 and older living alone, a rising average age for marriage (from 27 in 1990 to 31 today), and delayed childbearing (also from an average age of 27 to 31). The report suggests that financial concerns could be a significant factor behind these decisions, with the highest average ages for childbirth found in Ontario and British Columbia – home to some of the least affordable cities in the country.
The housing crisis in Canada, fueled by low-interest rates, strong demand, and a chronically depressed supply has led to skyrocketing home prices. After a brief and moderate decline in 2022, resale home prices have surged by 17% since the beginning of the year, as per the Canadian Real Estate Association.
“Canada’s youth need more than just policy announcements and prayers; they need urgent action,” the report noted. “(Housing) is one of the most pressing issues of our time, and governments of all levels need to take it seriously if young Canadians are going to achieve the same level of financial security as Canadians who came before them"