Some Canadians are facing exactly the same problems as many U.S. homeowners although the situation is not as severe. However, Canadian home prices have not fallen to the degree that they did in the US either. As this report indicates as many as one in five Canadians are having difficulties keeping up with their home expenses. The situation is made worse by the fact that many Canadian builders concentrate upon building for high income earners so that there is less supply for other homes and this boosts the prices. Affordability of homes has become worse over the last fifteen years.
1 in 5 households struggles with home costs
Twenty per cent of Canadian households have trouble finding the money to live in their homes because of a lack of affordable housing, the Conference Board of Canada says.
In a study released Tuesday, the think-tank estimates 75 per cent of Canadian families can comfortably afford their homes — meaning that housing costs consume no more than 30 per cent of their pre-tax incomes.Housing affordability has deteriorated in the last 15 years in Canada, the Conference Board notes.
Another five per cent live in subsidized rental housing. That leaves 20 per cent struggling with mortgage or rent payments that eat up more than 30 per cent of their incomes.
The report notes census data showing that housing affordability has worsened over the last 15 years.