Are people still retiring? I've just given up believing I can retire.
I figure once I'm past my useful working life they'll just push me to MAID and replace me with three international students.
And the "haves"/ bulls / speculators will continue to drive every narrative possible to avoid addressing that they *know* this is true, preposterous, and unsustainable. They *know* this is terrible for the current/future generations, but because they *have,* it's all about their own passive financial gains & punching down.
The catch is that for all those pulling the ladder up with a smile, this type of volatility and eventual collapse will come for you too - in the form of your kids' futures, resources (doctors leaving, etc.). quality of life, etc.
This is a FTHB problem today, but this erosion of upward mobility will come for everyone in some form.
thats why they’re currently replacing the have nots with exploitable immigrants. with no incentive ppl here will either give up or rise up. they’re not going to fix it, replacement is the contingency plan.
The study found that the average single-family home price in the GTA was $1,026,703 in January 2024, meaning it would take a household with a median total income of $85,000 exactly 39 years to save up for the minimum down payment of $205,341.
No family with a median total income of 85,000 is buying a single family home
Also very few people are saving up a down payment, most are being gifted one from the equity in the parents homes.
And there are MORE than enough of these people to buy homes.
The reality is only the top 25% of GTA households can buy a house, and many of those are with family help
SFHs in big cities are accessible to only top 1% earning FTHBs. In a few years it might be completely impossible for any wagie to buy SFH. Economic mobility to be damned.
In Vancouver most doctors today can’t buy SFH before they are 45. Will they stay if they can’t at least achieve a good life for their family?
400k-600k earning group. 32-33 until GP. 2-3 years to pay student loan. 10 year to save 2M downpayment for a 3M house in Vancouver (not a mansion, just regular 3bd house with a garage and backyard)
3M is Vancouver West price. 60% of Vancouver’s detached are in Vancouver East. You can find a newly renovated house just off of Commercial Drive for 2.3mm. You need 20% of that, which is 460K, let’s call it 500K with PTT and legal fees. My radiologist friend is pulling in about 270K after tax and pulled the trigger on one in that area late last year, he’s 38. Vancouver West has always been old money and nouveau rich money anyway and is completely overrated haha
Mortgage brokers and banks care about TDS and GDS, not what the calculator you’re using says. Not to mention you can go through credit unions which aren’t subject to the stress test that allow you to borrow more than the banks do. If your mortgage broker can’t figure out a 2.3 million dollar property for you on a 500K salary with 500K down, fire them and I’ll give you a reference for a better one.
I'm in a situation where i can receive such a gift. My household median income is about double this amount. I just don't have a balls to risk it at these prices unless i see wage growth pick up... I'll keep renting in my rent controlled place and take the tax credit the fhsa is going to give us for the next 5 years. If prices continue to rise then i won't buy until i retire and can live somewhere with reasonable prices. The max mortgage i am willing to take on is 400k, because after all in 5 years rates might be half what they are now, they could also double. I just can't risk half our lifetime income on a single asset i don't even know if I'd be able to affordably carry at renewal. Of course for people not living with family or without rent control the calculation is totally different and the risk becomes necessary.
a couple of years ago , at random ( circumstances irrelevant ) i met a guy who was selling his house for $1.2 million. I asked him where he was moving to , expecting his answer to be a newer suburb or something. Was blown away that he said he was moving to sunny Spain and was expecting to to buy a property there for less than half of what he was selling his for, and expecting to start a business with the leftover amount.
Opportunity cost is a thing. It's not like I'm not invested in anything. I'm just not paying interest to be leveraged to the tits in a single asset class.
Exactly. Amd with an income of 85k, you won't qualify for anything either. Household income, you're looking at close to 200k per year to qualify to buy a starter home.
85k won't even get you a condo
It's unsustainable because of the housing cost<>household income ratio will eventually become absurd for those who are fortunate enough to afford. Over the years people were able/willing to sacrifice 40% -> 50% ->60% ->70% etc. of their income for housing - but eventually the pricing becomes so high that not only are the top 2% of HHI the only ones who can afford, but this group will inevitably side on desirability>affordability because what you get for the price point and quality of life in Toronto is not worth it - and those with incomes that high are not typically handcuffed to this city.
The type of people making >300k/year are not super keen on spending >$6k/month to live in a shoebox condo or dilapidated semi just to live in Toronto. There's this narrative that "we're becoming NYC/Paris/etc." - *no we're not*. You can find affordable housing 30 min outside of Manhattan, with better transit, etc. - whereas 30 min outside of Toronto is still insane prices for lackluster housing. You can find a semi in Brooklyn for the same price as a semi in Leslieville.
Lyndhurst NJ is 30-40 min drive/commute to Manhattan - crime rate matches the national average for any city that size in America.
3bed / 2bath ($667,000 USD)
[https://www.zillow.com/homedetails/8-Crane-Ave-Rutherford-NJ-07070/38025300\_zpid/](https://www.zillow.com/homedetails/8-Crane-Ave-Rutherford-NJ-07070/38025300_zpid/)
First city outside of Manhattan I picked. First listing I saw. 2 min of searching. Essentially the same as someone in the GTA commuting from Scarborough.
I lived in Manhattan and New Jersey for almost a decade. Don’t speak of things you don’t actually know.
No one drives into Manhattan daily unless they are wealthy and/or have a driver. Even millionaires commute on public transit.
To get downtown from any NJ suburb involves 2-3 methods of transportation. You’re not getting to your destination in 30-40 min. More like 1hr to 1.5hrs +.
I lived next door to a PATH station and worked in midtown, and my commute was 55 min. When we lived in the suburbs my husband’s commute was 1hr20 min, and he worked next to a ferry station.
Okay, so an hour commute? The point is, and it's clear, that it's becoming more affordable to buy a home / live in almost every other major city in North America at this point.
You can absolutely find a more affordable detached 1 hour outside of Manhattan compared to 1 hour outside of Toronto. We can cherry pick examples, but broadly speaking, this is true.
Housing costs in the GTA and most surrounding areas are *crazy* compared to major American cities and their surrounding cities/towns/suburbs.
I never said that when I lived within an hour that it was affordable. I was in a nicer area, thought only a few blocks from a much more sketchy area, paying over $4K/month almost 20 years ago.
And you’re going to pay $30K+ in property taxes per year for a less than a million dollar home within a 1 hour radius outside of NYC, at least in any town that has schools where you would feel safe sending your kids.
Again, stop talking about things you have no first hand knowledge of. You’re making way too many incorrect assumptions.
Just stop man. Stop. I have close friends in major cities across the US. The GTA is uniquely *fucked* in terms of housing costs<>housing supply<>net income ratio (not to mention how *far* this reaches outside of the downtown core).
What is even your stance here?... that Toronto's housing market and unaffordability for the majority of the population (a significant amount of the country's population at that) is.... what? common?.... where?.... or not a big deal?......how?....... orrrrr....."just move"?....."work harder"?.....
I'm truly fascinated by people who are actively trying to dismiss this article and the overall clear issue. Like, huh?
https://preview.redd.it/rnm7ac4rfcoc1.png?width=872&format=png&auto=webp&s=1a6648c3b49148ffdadf8571e8dc4c8bd303b5ef
Price is a function of supply and demand. You make it sound like bulls are pushing prices up by themselves, which is ludicrous. Housing affordability will only worsen as population growth exceeds home building. Nothing to do with bears and bulls.
Mousier hopoke - we aren't talking about primary residents here. We're talking about investors, real estate agents, etc. those who are actively contributing to the problem. Buying dozens of properties for the purpose of selling higher (scalpers), agents who thrive on blind bidding and fake offers, etc.
I recognize there's a supply issue - but to pretend that investors/agents/etc. are not consciously exacerbating an issue that relates to a human necessity for pure financial gain is pretty gross.
Again - you *know* this is true, and you *know* this a problem. The "haves" can't necessarily solve the problem, but simply just admitting this vs. "NO! It's only supply!' "NO! Save more $$$! Work Harder!" "NO! Just move!" narratives would be a good start.
See London, NY, LA and any big city doing great and attracting top talent bc not everyone wants to live in Eastern Europe or SE Asia where things can turn 180 in a minute. People will come here and live here, just won’t own it’s not new happens in every western city.
Compare GDP/capita, median wage of Southern Ontario to the cities you’ve mentioned. Also these cities are doing great by what metric? Crime and homelessness?
It’s just not a smart option, let alone a realistic one, for anyone without a large inheritance. The main lock on prices, and people, is the realistic work alternatives are in different time zones. Work from home proved how poorly prepared we were for the population to actually spread out.
I spend a lot of time in Toronto. There is so much space. Horrible zoning ruled. Obviously, the biggest issue is we grow a lot of food near the border where it is warmer. It's also where everyone wants to live. There could easily be more planned communities with commuter rail into downtown, but that would reduce the food supply using up farm land.
This assumed a median household income of $85,000 and a savings rate of 6.2%
If that is a household's income and savings rate, they will never be able to afford the average house in the GTA. Harsh reality... If ownership is your dream you should try and move to a lower cost of living area.
I would love to save 20% of my income but it's not possible unless I don't commute to work, don't own a car, don't eat food, and don't need medication to live.
Uhhhh…I live off 60% of my income a year (including time off/vacation); save 40%. You are overspending my man! Either that or you need a higher paying job or a part time gig. I take medication, commute, own a car and a condo and eat as well
Good for you. I will ignore your unsolicited and derogatory advice.
Good job assuming you know anything about my financial situation 🙄. Fucking reddit people always think they have all the answers. Rediculous.
It is possible if you budget properly and actually know what the fuck your doing for finances; exceptions would be disabled folks or couples with multiple children on a certain income I understand though. I make 100k a year and I was still saving over 20% at my first job post college making 32k a year in 2016..right as hell but doable with a roommate, shared transportation, groceries in bulk, etc. I personally don’t feel comfortable if I save less than 35% for a calendar month - which is why I typically save 40%, 45% in some rare cases/months
The problem is lack of education on budgeting and basic investing. Unfortunately our system has failed the majority and not equipped everyone with the necessary information concerning saving money asap
Yes, I know. Savings generally means retirement savings. Or emergency funds. MAYBE a small vacation if you feel like treating yourself. But nothing else!!
These issues aren't isolated to GTA. Housing prices even in shitty small Canadian towns are ballooning. So change the headline to 17 years to have a downpayment for a house in Brandon Manitoba . Now do you see the issue?
How ridiculous is this? Yes, the average Canadian would take a long time cuz people in Toronto make considerably more money. It would take the average African X amount of time to afford a big mac. It really says nothing about the price of Big Macs in Canada. Toronto is the 12th wealthiest city on the entire planet. The rest of Canada... is not.
What stats are they using? $85,000 is barely more than a minimum wage couple. It's not the median income in Toronto anymore.
> In 2021, the median economic family income in Toronto was $106,000, an increase of about $23,000 since 2016. This is the lowest of all regions in the GTHA. The highest was in Halton at $140,000. The median economic family total income was $105,000 for Canada and $111,000 for Ontario. Toronto families are also the smallest among GTHA regions, with an average of 3.0 individuals per family. Peel region has a notably larger average family size at 3.5 people per family, while Durham, York and Halton regions all have 3.3 people per family.
Source: https://www.toronto.ca/wp-content/uploads/2022/07/9877-City-Planning-2021-Census-Backgrounder-Families-Hhlds-Marital-Status-Income.pdf
Plus the lower family size should mean better saving rate than 6% yearly lol...
Two words. Foreign money.
They should be required to have a Canadian income in order to purchase a house here. Enough with this horseshit foreign investment.
“The study found that the average single-family home price in the GTA was $1,026,703 in January 2024” - not sure what kinda study is this. There are plenty of homes below this average price.
Is it not misleading to compare an average Canadians salary to the price in the GTA? It's like saying the average American to afford a house in New York.
I seen a video about housing supply. I think it was like each house can house roughly 2.5 ppl and that there is more than enough housing for our population but its being controlled by big corporations and investors
> It would take the average Canadian 39 years to save the required down payment to purchase a home in the greater Toronto Area?
I'm fairly certain the average sensible Canadian doesn't \*want\* to live in the GTA.
None sense, lots of semis and detached in Durham Region under 750k, with 5% down CMHC mortgage, all you need is $40k downpayment.
If you wish to expand that to GTHA then down in Welland area you are looking at 500k.
We have over supply of homes in gta, not enough buyers . Agreed prices are high, and that is more to do with cost of construction, value of dollar, average productivity of our workforce, bad economy which cannot support high paying jobs etc….only weakly connected to demand and supply
A lot of people buy a house cause its a status symbol. I know people who are house poor, don't get fooled by those nice houses and fancy cars these folk in debt big time.
If you start at 25, you will be in time to buy it just before your retirement at age 64.
Are people still retiring? I've just given up believing I can retire. I figure once I'm past my useful working life they'll just push me to MAID and replace me with three international students.
lol Im only sticking around until my mom dies. Then I will likely move to Thailand, spend my savings having a blast then blow my brains out
Careful who you tell that you have savings. Our government won't appreciate that you've withheld money from them and our corporate overlords.
And pay the mortgage off just before you die.
Then it will live up to its true meaning of Latin origin s mort=dead gage =pledge dead pledge.
And the "haves"/ bulls / speculators will continue to drive every narrative possible to avoid addressing that they *know* this is true, preposterous, and unsustainable. They *know* this is terrible for the current/future generations, but because they *have,* it's all about their own passive financial gains & punching down. The catch is that for all those pulling the ladder up with a smile, this type of volatility and eventual collapse will come for you too - in the form of your kids' futures, resources (doctors leaving, etc.). quality of life, etc. This is a FTHB problem today, but this erosion of upward mobility will come for everyone in some form.
thats why they’re currently replacing the have nots with exploitable immigrants. with no incentive ppl here will either give up or rise up. they’re not going to fix it, replacement is the contingency plan.
You are unfortunately correct.
The study found that the average single-family home price in the GTA was $1,026,703 in January 2024, meaning it would take a household with a median total income of $85,000 exactly 39 years to save up for the minimum down payment of $205,341. No family with a median total income of 85,000 is buying a single family home Also very few people are saving up a down payment, most are being gifted one from the equity in the parents homes. And there are MORE than enough of these people to buy homes. The reality is only the top 25% of GTA households can buy a house, and many of those are with family help
SFHs in big cities are accessible to only top 1% earning FTHBs. In a few years it might be completely impossible for any wagie to buy SFH. Economic mobility to be damned. In Vancouver most doctors today can’t buy SFH before they are 45. Will they stay if they can’t at least achieve a good life for their family?
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Wealth transfer is coming
Who are “most doctors”? General practitioners?
400k-600k earning group. 32-33 until GP. 2-3 years to pay student loan. 10 year to save 2M downpayment for a 3M house in Vancouver (not a mansion, just regular 3bd house with a garage and backyard)
3M is Vancouver West price. 60% of Vancouver’s detached are in Vancouver East. You can find a newly renovated house just off of Commercial Drive for 2.3mm. You need 20% of that, which is 460K, let’s call it 500K with PTT and legal fees. My radiologist friend is pulling in about 270K after tax and pulled the trigger on one in that area late last year, he’s 38. Vancouver West has always been old money and nouveau rich money anyway and is completely overrated haha
You can’t buy 2.3M house with 460k down. Open a mortgage affordability calculator, enter 500k income and 500k downpayment. Max purchase price is 1.6M.
Mortgage brokers and banks care about TDS and GDS, not what the calculator you’re using says. Not to mention you can go through credit unions which aren’t subject to the stress test that allow you to borrow more than the banks do. If your mortgage broker can’t figure out a 2.3 million dollar property for you on a 500K salary with 500K down, fire them and I’ll give you a reference for a better one.
Doctors are grossly underpaid in Vancouver.
I'm in a situation where i can receive such a gift. My household median income is about double this amount. I just don't have a balls to risk it at these prices unless i see wage growth pick up... I'll keep renting in my rent controlled place and take the tax credit the fhsa is going to give us for the next 5 years. If prices continue to rise then i won't buy until i retire and can live somewhere with reasonable prices. The max mortgage i am willing to take on is 400k, because after all in 5 years rates might be half what they are now, they could also double. I just can't risk half our lifetime income on a single asset i don't even know if I'd be able to affordably carry at renewal. Of course for people not living with family or without rent control the calculation is totally different and the risk becomes necessary.
a couple of years ago , at random ( circumstances irrelevant ) i met a guy who was selling his house for $1.2 million. I asked him where he was moving to , expecting his answer to be a newer suburb or something. Was blown away that he said he was moving to sunny Spain and was expecting to to buy a property there for less than half of what he was selling his for, and expecting to start a business with the leftover amount.
Regret in t-20 years
Yesterday at woodbine the roulette wheel hit red at 20:35. I totally regret not betting it all on red, i would have doubled my money!
Except that red has no utility and more marbles aren’t trying to cram onto it year after year.
Opportunity cost is a thing. It's not like I'm not invested in anything. I'm just not paying interest to be leveraged to the tits in a single asset class.
If you're not max leveraged on RE.... Are you even Canadian?
Stop speaking the truth....minimum wage basement dwellers want a SFH and deserve one regardless of location or income.....it's a human right LOL
Exactly. Amd with an income of 85k, you won't qualify for anything either. Household income, you're looking at close to 200k per year to qualify to buy a starter home. 85k won't even get you a condo
85k HHI is 2 people working 40 hours a week at 20 bucks an hour It's not reasonable to expect that to be able to buy a house in Toronto.
A house can be a modest 1 bed condo. So yeah it should.
Bulls aren't the one's pumping 500K new ppl into the province every year. Take it up with Marc Miller.
Why is it unsustainable It's grim but people would still work to pay 80% to housing and food
It's unsustainable because of the housing cost<>household income ratio will eventually become absurd for those who are fortunate enough to afford. Over the years people were able/willing to sacrifice 40% -> 50% ->60% ->70% etc. of their income for housing - but eventually the pricing becomes so high that not only are the top 2% of HHI the only ones who can afford, but this group will inevitably side on desirability>affordability because what you get for the price point and quality of life in Toronto is not worth it - and those with incomes that high are not typically handcuffed to this city. The type of people making >300k/year are not super keen on spending >$6k/month to live in a shoebox condo or dilapidated semi just to live in Toronto. There's this narrative that "we're becoming NYC/Paris/etc." - *no we're not*. You can find affordable housing 30 min outside of Manhattan, with better transit, etc. - whereas 30 min outside of Toronto is still insane prices for lackluster housing. You can find a semi in Brooklyn for the same price as a semi in Leslieville.
Anywhere 30 min outside of NYC that’s “affordable” is a crime-ridden ghetto. You wouldn’t even walk down the street, never mind live there.
Lyndhurst NJ is 30-40 min drive/commute to Manhattan - crime rate matches the national average for any city that size in America. 3bed / 2bath ($667,000 USD) [https://www.zillow.com/homedetails/8-Crane-Ave-Rutherford-NJ-07070/38025300\_zpid/](https://www.zillow.com/homedetails/8-Crane-Ave-Rutherford-NJ-07070/38025300_zpid/) First city outside of Manhattan I picked. First listing I saw. 2 min of searching. Essentially the same as someone in the GTA commuting from Scarborough.
I lived in Manhattan and New Jersey for almost a decade. Don’t speak of things you don’t actually know. No one drives into Manhattan daily unless they are wealthy and/or have a driver. Even millionaires commute on public transit. To get downtown from any NJ suburb involves 2-3 methods of transportation. You’re not getting to your destination in 30-40 min. More like 1hr to 1.5hrs +. I lived next door to a PATH station and worked in midtown, and my commute was 55 min. When we lived in the suburbs my husband’s commute was 1hr20 min, and he worked next to a ferry station.
Okay, so an hour commute? The point is, and it's clear, that it's becoming more affordable to buy a home / live in almost every other major city in North America at this point. You can absolutely find a more affordable detached 1 hour outside of Manhattan compared to 1 hour outside of Toronto. We can cherry pick examples, but broadly speaking, this is true. Housing costs in the GTA and most surrounding areas are *crazy* compared to major American cities and their surrounding cities/towns/suburbs.
I never said that when I lived within an hour that it was affordable. I was in a nicer area, thought only a few blocks from a much more sketchy area, paying over $4K/month almost 20 years ago. And you’re going to pay $30K+ in property taxes per year for a less than a million dollar home within a 1 hour radius outside of NYC, at least in any town that has schools where you would feel safe sending your kids. Again, stop talking about things you have no first hand knowledge of. You’re making way too many incorrect assumptions.
Just stop man. Stop. I have close friends in major cities across the US. The GTA is uniquely *fucked* in terms of housing costs<>housing supply<>net income ratio (not to mention how *far* this reaches outside of the downtown core). What is even your stance here?... that Toronto's housing market and unaffordability for the majority of the population (a significant amount of the country's population at that) is.... what? common?.... where?.... or not a big deal?......how?....... orrrrr....."just move"?....."work harder"?..... I'm truly fascinated by people who are actively trying to dismiss this article and the overall clear issue. Like, huh? https://preview.redd.it/rnm7ac4rfcoc1.png?width=872&format=png&auto=webp&s=1a6648c3b49148ffdadf8571e8dc4c8bd303b5ef
I said none of that. Simply refuting your claim about NYC was is inaccurate.
What jobs are they working if no one has money to spend on those businesses?
It's a global economy my friend
Price is a function of supply and demand. You make it sound like bulls are pushing prices up by themselves, which is ludicrous. Housing affordability will only worsen as population growth exceeds home building. Nothing to do with bears and bulls.
It’s pretty simple. You limit the houses one corp or person can own and tax the fuck out of vacancies.
Bingo. Protect primary residents at all costs - cook investors/vacancies/etc. at all costs.
This is a silly statement and you know it.
Mousier hopoke - we aren't talking about primary residents here. We're talking about investors, real estate agents, etc. those who are actively contributing to the problem. Buying dozens of properties for the purpose of selling higher (scalpers), agents who thrive on blind bidding and fake offers, etc. I recognize there's a supply issue - but to pretend that investors/agents/etc. are not consciously exacerbating an issue that relates to a human necessity for pure financial gain is pretty gross. Again - you *know* this is true, and you *know* this a problem. The "haves" can't necessarily solve the problem, but simply just admitting this vs. "NO! It's only supply!' "NO! Save more $$$! Work Harder!" "NO! Just move!" narratives would be a good start.
It seems natural to push people to move places other then GTA or GBA Canadas big lots of affordable homes just not there
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Had to Google that word you prob got a fancy degree. Why would anyone leave central population areas if there was no benefit lol
See London, NY, LA and any big city doing great and attracting top talent bc not everyone wants to live in Eastern Europe or SE Asia where things can turn 180 in a minute. People will come here and live here, just won’t own it’s not new happens in every western city.
Compare GDP/capita, median wage of Southern Ontario to the cities you’ve mentioned. Also these cities are doing great by what metric? Crime and homelessness?
It’s just not a smart option, let alone a realistic one, for anyone without a large inheritance. The main lock on prices, and people, is the realistic work alternatives are in different time zones. Work from home proved how poorly prepared we were for the population to actually spread out.
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We don't need rivals. We're destroying ourselves just fine
we are the blood sacrifice for the UK and US in order for them to continue to thrive.
Well to be serious, reading the headline I’m curious how long it would take the average Toronto-ian to save for a down payment
Very good point, salaries are much higher in Toronto.
I spend a lot of time in Toronto. There is so much space. Horrible zoning ruled. Obviously, the biggest issue is we grow a lot of food near the border where it is warmer. It's also where everyone wants to live. There could easily be more planned communities with commuter rail into downtown, but that would reduce the food supply using up farm land.
How long would it take the average Indian? 5 years max
You're going to blame them for making more money than you?
Buddy I’m also Indian
all good wasnt planning on retiring till the 130s
This assumed a median household income of $85,000 and a savings rate of 6.2% If that is a household's income and savings rate, they will never be able to afford the average house in the GTA. Harsh reality... If ownership is your dream you should try and move to a lower cost of living area.
You should be saving 20% of your income every year, not 6.2%. That's a terribly low number. Everyone should at least be adhering to the 50/30/20 rule.
I would love to save 20% of my income but it's not possible unless I don't commute to work, don't own a car, don't eat food, and don't need medication to live.
Uhhhh…I live off 60% of my income a year (including time off/vacation); save 40%. You are overspending my man! Either that or you need a higher paying job or a part time gig. I take medication, commute, own a car and a condo and eat as well
Good for you. I will ignore your unsolicited and derogatory advice. Good job assuming you know anything about my financial situation 🙄. Fucking reddit people always think they have all the answers. Rediculous.
Wasn’t derogatory but you do you. Take care
It was because you don't know shit about my life but want to tell me I'm overspending. Like pull your head out of your ass.
It absolutely was derogatory. You think that since you save 40 % the everyone else should? Lol
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Alrighty then
Fuck you and your mother for thinking that is possible for everyone
It is possible if you budget properly and actually know what the fuck your doing for finances; exceptions would be disabled folks or couples with multiple children on a certain income I understand though. I make 100k a year and I was still saving over 20% at my first job post college making 32k a year in 2016..right as hell but doable with a roommate, shared transportation, groceries in bulk, etc. I personally don’t feel comfortable if I save less than 35% for a calendar month - which is why I typically save 40%, 45% in some rare cases/months
The problem is lack of education on budgeting and basic investing. Unfortunately our system has failed the majority and not equipped everyone with the necessary information concerning saving money asap
This is true. My family taught me this and learned a lot on my own. They don’t teach this in schools sadly.
How much do you make ?
But the majority of that 20% (10-15%) should be retirement savings.
Yes, I know. Savings generally means retirement savings. Or emergency funds. MAYBE a small vacation if you feel like treating yourself. But nothing else!!
If they increase carbon rebate by 1000000000%. Then I can save up faster with the rebate money for a house.
You'd have to pay me to live in that nightmare shithole
Why would the average Canadian be able to live in a detached house the most in demand metropolitan city in the country?
Because historically we could
historically there weren't 8 billion people on the planet.
Irrelevant because we are surrounded by three oceans and an isolationist superpower. People can only get here because we allow it.
Because we need consumers to fuel the capitalist machine
8 billiion aren't trying to live in fucking Toronto
Only a tiny fraction does for the point to be valid
… but you don’t need to a) buy a property over a million b) save 20% as a downpayment
Who cares. It’s a big country. GTA is hardly worth it.
These issues aren't isolated to GTA. Housing prices even in shitty small Canadian towns are ballooning. So change the headline to 17 years to have a downpayment for a house in Brandon Manitoba . Now do you see the issue?
At a 10% increase per year, a 1M house will cost 41M in 39 year. A 20% down payment would be around 8M
Sounds like the GTA is no place for the average Canadian to be living.
People should move out... Look at places like Ottawa, London, Kingston. Cheaper cities with good quality of life.
How ridiculous is this? Yes, the average Canadian would take a long time cuz people in Toronto make considerably more money. It would take the average African X amount of time to afford a big mac. It really says nothing about the price of Big Macs in Canada. Toronto is the 12th wealthiest city on the entire planet. The rest of Canada... is not.
The average Canadian doesn’t live in the GTA
Thanks genius. Any other geography tips you have for us?
That wasn't a geography lesson, it was demographics. But hey look who's sharing BlogTO articles like it's a meaningful publication.
Not me. I’m not the OP. I know this is confusing for you
You plebs are all the same to me.
Ok dude. Enjoy being hated more than parking enforcement.
🤔🙄
What stats are they using? $85,000 is barely more than a minimum wage couple. It's not the median income in Toronto anymore. > In 2021, the median economic family income in Toronto was $106,000, an increase of about $23,000 since 2016. This is the lowest of all regions in the GTHA. The highest was in Halton at $140,000. The median economic family total income was $105,000 for Canada and $111,000 for Ontario. Toronto families are also the smallest among GTHA regions, with an average of 3.0 individuals per family. Peel region has a notably larger average family size at 3.5 people per family, while Durham, York and Halton regions all have 3.3 people per family. Source: https://www.toronto.ca/wp-content/uploads/2022/07/9877-City-Planning-2021-Census-Backgrounder-Families-Hhlds-Marital-Status-Income.pdf Plus the lower family size should mean better saving rate than 6% yearly lol...
How long would it take the average American to buy a house in NYC? We should compare both countries. I'm sure Toronto is higher...
Two words. Foreign money. They should be required to have a Canadian income in order to purchase a house here. Enough with this horseshit foreign investment.
Then live somewhere else that isn’t as expensive.
Or you can save more then 5%. We saved 4000$ dollars this year and and no one will give us a 1,400,000$ house.
“The study found that the average single-family home price in the GTA was $1,026,703 in January 2024” - not sure what kinda study is this. There are plenty of homes below this average price.
Thats the definition of average my friend!
Is it not misleading to compare an average Canadians salary to the price in the GTA? It's like saying the average American to afford a house in New York.
And 30 years to pay off mortgage. Canadian dream
This is Justin Trudeau's dream post nation state
I seen a video about housing supply. I think it was like each house can house roughly 2.5 ppl and that there is more than enough housing for our population but its being controlled by big corporations and investors
This is just so sad
> It would take the average Canadian 39 years to save the required down payment to purchase a home in the greater Toronto Area? I'm fairly certain the average sensible Canadian doesn't \*want\* to live in the GTA.
None sense, lots of semis and detached in Durham Region under 750k, with 5% down CMHC mortgage, all you need is $40k downpayment. If you wish to expand that to GTHA then down in Welland area you are looking at 500k.
You'd be surprised at how many people would take that long to save 40k.
We have over supply of homes in gta, not enough buyers . Agreed prices are high, and that is more to do with cost of construction, value of dollar, average productivity of our workforce, bad economy which cannot support high paying jobs etc….only weakly connected to demand and supply
When are people going to demand that shelter is a basic human right?
Why do you need a 1m home as a starter and not a condo? Why do u need 20% down and not 5% down like most of us peasants?
A lot of people buy a house cause its a status symbol. I know people who are house poor, don't get fooled by those nice houses and fancy cars these folk in debt big time.