5 min
The Canadian Housing Market is a Mess
The Social Contract is Broken—And We Forgot to Tell Our Kids There was a time in Canada when the rules seemed straightforward: work hard, stick to the plan, and your kids would have an even better future than you did. That was the unspoken social contract—not legally binding, but deeply believed. A handshake between generations, sealed with maple syrup and mutual optimism. You purchased a modest home, stayed with one employer for 30 years, and retired with a gold watch, a pension, and a house you owned outright. Life wasn’t flashy, but it was fair. And your kids? They would climb even higher. Well… about that! The Housing Market: From Stepping Stone to Stumbling Block Homeownership used to be a rite of passage. Now it feels more like winning The Amazing Race: Toronto Edition. According to Statistics Canada housing data, in 1990, the average Canadian home sold for approximately $215,000. Fast-forward to late 2023–early 2024, and that number has ballooned to around $670,000–$700,000 on average —a more than 200–225% increase in just over three decades. Meanwhile, wages didn’t get the memo. Since 1990, they’ve only doubled. So, while home prices soared, incomes shifted to the kitchen for more instant noodles. It's not just a gap—it’s a canyon. Sure, there was a housing correction in the early ’90s. But if you’re under 40, you’ve never seen a price drop—only stable prices (on a good day). Meanwhile, boomers and older Gen Xers bought homes when down payments didn’t require a GoFundMe page. Boomers Rode the Rocket—Then Pulled Up the Ladder Let’s be honest: we did quite well. If you purchased property in the ’70s, ’80s, or ’90s, you benefited from a wave of equity that transformed retirement into a cruise ship brochure. For many, the house became the largest—and only—source of real wealth. We got used to it. Then we got protective. Then... well, a bit smug. NIMBYism? Guilty. Zoning restrictions? Voted yes. Capital gains reform? Over my arthritic body. Preferred Pronouns – Me, Myself and I We feared anything that could lower our property values. A 25% correction? Not in my golden years! But that might be what it takes to give our kids a fair shot. We told them to "work hard," then quietly reinforced a game they couldn’t win. We Told Them to Hustle—Then Rigged the Game Today’s young Canadians aren’t lazy; they’re exhausted. They’ve done everything we asked—degrees, careers, even side hustles—and still can’t afford a 500-square-foot shoebox in Toronto without cashing in their RRSPs or moving back into our basements. By the way, they’re doing this—not because they missed us, but because rent is eating up half their paycheque and still asking for dessert. Even worse? Many are looking abroad, not for a gap year, but for an economy in which they can participate—one where they might be able to afford a home and groceries in the same month. If the best and brightest are quietly packing their bags, it’s not wanderlust; it’s a policy failure. There’s now a whole ecosystem catalyzed by everything from consultants to cloud-based software and payment platforms that has aided a global movement of “creative-class” digital nomads. For those who want a more affordable cost of living and have the skills necessary to work remotely, this generation has options to move. In "Intelligent Money," author Chris Skinner envisions a future where AI-powered financial systems won’t just advise against homeownership—they’ll actively discourage it. Why commit to mortgage debt when you can rent flexibly, invest digitally, and maintain liquidity in your life? Not a dream, but a necessity. We told them to pull up their socks. They’re wondering if we sold their shoes. What Happened to Profit Sharing? Remember when companies used to share their success? Microsoft, Google, and yes, still Costco, offered profit-sharing or stock options that turned employees into unexpected millionaires. It wasn’t charity; it was a fair deal. Then gig work emerged, HR departments disappeared, and the only thing we shared was burnout. We need to restore fairness—perhaps even incentivize companies that value loyalty. Renter Equity Accounts: A Radical Concept—Equity You're not building wealth if rent is more than 30% of your income. You’re funding someone else’s retirement. So, here’s a thought: when rent exceeds 30%, why don’t we match the excess—25% to 50%—and deposit it into a locked “Renter Equity Account”? It grows tax-free and can be used for: A down payment Retirement savings Student debt relief Emergency funds Employers could contribute to REA plans. Governments could provide incentives, and renters could finally receive more than just a rent receipt and a pat on the back. It's Time for Bold, Practical Ideas We can’t rewind to 1990. (Although the fashion world is trying.) But we can fix what’s broken: Let Canadians earn their first $250,000 tax-free, provided it is used for a down payment or to eliminate student loans. That’s helping reduce overall debt. Ensure zoning reform is effective by linking federal infrastructure funding to genuine housing development. Establish public wealth tools TFSA-style accounts for low-wealth, high-effort Canadians. Forgive student loans for public service, specifically for individuals filling positions such as nurses, teachers, early childhood educators, and tradespeople, with added incentives for those relocating to underserved areas. Invest in them, and they will reinvest in us. What Families Can Do—Right Now No, you can’t rewrite national policy from the kitchen table. (Unless you’re Chrystia Freeland.) But here’s what you can do: Start a down payment fund—consider using a TFSA or an investment account to help your kids build capital. Create an ADU—laneway homes, granny suites, legal basement rentals. Housing and support combined. Access your home equity—HELOCs or reverse mortgages can be lifelines, not luxury options. Create a rent-to-own family plan—turn monthly rent into future equity. Discuss finances—share your successes, warn against mistakes, and share the financial knowledge you’ve gained from hard lessons. An Apology—from the Heart To our kids and to the next generation, we should say we’re sorry. We didn’t plan for this outcome. We assumed the paths we walked would still be open for you, that the same rules would still apply, and that equity would be available to all. We forgot that a contract—even an unspoken one—still needs to be honoured. But it’s not too late. We can speak out. We can share our thoughts. We can change the policies, shift the mindsets, and reopen the doors that have been closed, because the future of this country shouldn’t be something you have to leave to find. Let’s fix this. So, you can stay. And thrive. And lead. Let’s rebuild the contract together. Deal? Don’t Retire … Re-Wire! Sue
