Recent news headlines highlight a growing concern — buying a home has become far less affordable, especially for younger and first-time buyers. Rising prices combined with higher interest rates have pushed monthly payments well beyond what many households can comfortably manage.
There’s no question affordability is tighter than it was a decade ago. Wages simply haven’t kept pace with how quickly home values increased across much of Ontario.
At the same time, there’s another side to the story that often gets overlooked.
Millions of current homeowners are relying on the equity growth in their homes to fund retirement. For many Canadians, their house represents their largest financial asset — built up over years of mortgage payments and market appreciation.
Because of this, calls for governments to “push housing prices down” come with serious risks. Sharp declines could erase retirement savings, leave homeowners owing more than their homes are worth, and create broader economic instability.
In reality, policymakers are walking a tightrope.
Rather than forcing prices lower, the focus is more likely to be on slowing growth, increasing housing supply, and offering targeted support for buyers. The goal is a more balanced market — not a crash.
Over time, affordability is expected to improve gradually through a combination of stabilized interest rates, more homes being built, and rising incomes.
The housing market impacts everyone — buyers hoping to get in, and homeowners planning for the future. Finding that balance is one of Canada’s biggest economic challenges moving forward.
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