In the 1970s, my grand-father was making about $60,000 a year, and bought his first house for $10,000. He sold it for 6 times this amount 20 years later, in the 1990s.
Back in 2000, my mom, who was making about the same yearly salary bought our family house on Montreal's North Shore for $88,000.
18 years later, my friends that are making $60,000 / year are looking to buy their first home in the city, and are now looking at $600,000-$1,000,000 listings.
Canada's housing market is definitely f*cked.
Last week, Bank of Canada announced the increase of interest rates, and recommanded millenials to buy a ”smaller and less expensive home.” Unfortunately for us, there is no such thing as a small house that's not expensive in Canadian major cities. Everyone's talking about how the Vancouver market's broken, but it's the same case across Canada.
One of my closest friend living in Toronto is looking to buy her first house with her boyfriend, and they are looking for ''small and less expensive'' homes in areas that are super far from the downtown core... and the price listing are still over one million. And what's even crazier, is that the houses are getting sold in minutes (people are making offers without even visiting the place), and owners are getting cheques for hundred of thousands over the asked price.
To illustrate the sad situation in Canada's major cities at the moment, here are a few listing of ''small homes'' on sale right now.
This house, located in Toronto's Little Portugal, is for sale for $980,000. Doesn't look like a castle, right? This 3 bedroom house (2 units) represents super well what a $ 1M house looks like in a high-demand area of the city.
If you're lucky, you could find a fully renovated detached house like this one on Dufferin St. However, I am hoping you have an extra $350,000 to spend.
This tiny yellow house located in the south area of Vancouver is listed at $1,395,000. If you want to have 2 floors, double this amount! This property located in the Heasting East is listed at $ 2M (bellow).
This little house located in Ahuntsic-Cartierville is currently listed for $999,999. This popular area for young families is directly located on Montreal's island.
For the same price, you could get this 1960s triplex in Villeray, another popular residential area in the city.
It's safe to say that our generation will never be able to buy a house in Montreal, Toronto or Vancouver. Even if we were able to afford it, we would need to have major contruction / renovation skills, because most of the $ 1-million houses aren't up to date, and after spending this insane amount of money, few of us will have more dollars to invest in hiring a renovation crew!
We may just have to accept the fact that we're meant for the 800 square-foot condo life, with $300 of extra fees every month to clean the gym no one uses. At least we can console ourselves by thinking that we will not have to mow a lawn or rebuild the roof until death do us part.
Oh, and before I forget, the Vancouver house featured on the cover image is currently listed at $ 3,6M.