A new report highlights just how unaffordable homes are in the city, calculating that it would take nearly 20 years for the average young person working full time to save up a down payment.
The report, provided to Metro News by UBC professor Paul Kershaw, uses historical income data and the average cost of housing in the Greater Toronto Area to approximate the difficulty faced by the millennial generation when it comes to saving for a down payment.
Kershaw found that it would take the average millennial, defined as those between 25 - 34, some 19.5 years to save up for the down payment on an average Toronto home, based on an average price of $875,983 for all home types. The data assumes these people can save 15% of their income annually.
For a lot of people, the long saving window means buying a home won’t happen until they’re more than 40 years old. Even then, with an average Toronto income, it could take another 40 years to pay off the mortgage on that home.
Based on Statistics Canada data, the average man in the country lives to 79, while the average woman lives to 83.
Based on Statistics Canada data, the average man in the country lives to 79, while the average woman lives to 83. That means you’re now at a serious risk of dying before you even pay off your mortgage.
The report highlights the need for something to be done about the widespread lack of housing affordability for Torontonians across all age groups. Kershaw is trying to do just that, by founding Generation Squeeze, an organization that aims to spark and shape the conversation around housing and other financial struggles faced by young Canadians.
Generation Squeeze will be launching in Toronto this weekend on March 11.