A new study reveals a stark reality for aspiring homeowners in the GTA: affordability is plummeting. According to a Fraser Institute analysis, typical homes are now out of reach for median-income families across major Canadian cities, including Toronto. The study highlights a significant increase in the time required to save for a down payment, jumping from 14.1 months of after-tax income in 2014 to 22 months in 2023. Mortgage payments are also consuming a larger share of income, rising from 29.9% to a staggering 56.6%. Renters aren’t faring much better, with median rents in Toronto exceeding 30% of income. Experts point to factors like restrictive land-use policies and rapid immigration outpacing construction as key drivers of this affordability crisis. For a deeper dive into the numbers and the potential solutions, read the full article on mpamag.com.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/homeownership-dream-frays-as-affordability-crunch-deepens/559463
