Latest news with #DesjardinsAffordabilityIndex
Calgary Herald
05-06-2025
- Business
- Calgary Herald
Average home price growth in Canada outpaces affordability
Article content Home prices have more than doubled wage growth in Canada over the last 25 years, highlighting how housing has become unaffordable across much of the country, a new report has concluded. Article content Desjardins Economic Studies published a study in May finding average home prices since 2000 have 'ballooned' by more than four times whereas household disposable income has only increased a little more than two times. Article content Article content Article content Desjardins further noted that first-time buyers face a steep hill to ownership, especially given they are also paying historically high rent across many Canadian markets. Article content Article content The report pointed to the Desjardins Affordability Index being at historical lows for affordability even as mortgage rates have eased and home prices have fallen in Canada's most expensive markets like the Greater Toronto Area. Article content Affordability hit bottomed out coming out of the pandemic as interest rates soared from near historical lows to about seven per cent for five-year fixed mortgages by fall 2023, but the report noted Canadian households remain under pressure — made worse by Canada-United States trade anxieties. Article content Desjardins added that home price pain is not merely an outcome of lower interest rates during the pandemic and recently high migration to Canada. Prices have accelerated gradually over the last 25 years — though more so as a result of the pandemic. Article content Assuming a household could save 20 per cent of disposable income, earning three per cent per year on money saved, it would take six years to have a down payment for the average home in Canada, about $700,000. Article content Given the economic uncertainty, stirred largely by U.S. policy, affordability is unlikely to improve soon, it added. Article content
Toronto Star
15-05-2025
- Business
- Toronto Star
Despite falling interest rates and prices, home affordability isn't set to improve any time soon, report says
Despite mortgage rates recently softening and home prices in some parts of the country falling, the affordability index remains 'near historically low levels,' the latest Desjardins Affordability Index report has found.
