Ten years ago, moving to Canada was a dream for many, and why not? There was a pleasant environment, harmony, and, importantly, a lower cost of living. People were able to afford everything, from cheap houses, cars, luxuries, and other important commodities.
But affordability has a different meaning in Canada now. Even people of Canada are not able to pay their rent. Here’s a big claim now, In some neighbourhoods, not owning a home now costs more than owning one.
This is how doomed the Canadian housing sector is…
According to CTV news, A recent statewide analysis of online listings has revealed that the average rent in Canada increased more than 10% Year-over-year in July for all types of properties.
Reportedly, the average rent for all property types, including single-family homes, townhouses, rental apartments, condominium flats, and basement apartments, in July was $1,934, according to the most recent National Rent Report from Rentals.ca and Bullpen Research & Consulting.
If one sees data month-on-month, it is even more worrisome. The average rent rose 2.6 per cent in July compared to June, making it the second-highest monthly jump in three years.
Over the last decade, the gap between housing rental and housing purchase has been narrowing. The owners in all areas spent around 45 per cent more than tenants in 2011, it fell to 38.84 per cent in 2016, and to 30.28 per cent in 2021.
Whereas the trend is exactly the reverse for renters. Renters’ bills are climbing faster than homeowners’. The average tenant in Canada in 2021 paid 17.6 per cent more than they did in 2016.
Now when you see specific data for cities, this data is more worrisome.
The Data on cities is more worrying
A study of 35 Canadian cities revealed that, in July 2022, Vancouver topped the list for the highest average monthly rent for a one- and two-bedroom property at $2,500 and $3,630, respectively, representing rises of 14.4% and 19.4% year over year.
The typical rent in Vancouver increased by 3.6% for a one-bedroom house and by 4.8% for a two-bedroom house compared to June.
For a one-bedroom apartment, the average rent in Toronto province in Canada of Ontario increased by 21.6% year over year to $2,257, and by 25% to $3,259 for a two-bedroom apartment.
With an increase in average rent of 15.2% to $2,332 over the previous year, Ontario came in second. Nova Scotia, with an increase in average rent of 25% to $2,222 over the previous year, came in third.
A life full of misery
At $2,590, up 19% year over year, British Columbia in Canada has the highest average rent across all property categories in July.
In addition to the cost of living, dealing with other issues like public transportation, jobs, health, and everything else is also becoming a difficult task.
This could have never been the situation if it wasn’t for Justin Trudeau and liberals. After the global financial crisis of 2008, Canada’s housing affordability index was smoothly going down. At the end of Q4 2014, the Housing Affordability Index for Canada stood at 0.318. Just one year later, the value jumped to 0.345.
The blue-eyed boy of Canada has now broken all records at once because now the index has officially crossed the 0.5 mark.
The HAI is at its weakest point in more than 30 years. So now, living in Canada is indeed getting too costly.
Canada has always been labelled as a nation where living is considered to be a luxury. However, now it looks like affording a luxury in Canada is going to be hectic. Renting a home in Canada is now more luxurious than affording one.
If this ain’t a degrading economy, what else do we call it??