Affordability is a growing challenge
New census data from Statistics Canada points to a trend that concerns me.
I’ve known for some time now, as have many others, that we’re facing a growing challenge in this country and it’s housing affordability.
This is a micro and a macro issue. In far too many places across Canada, local wages have become totally separated from local housing prices. It’s a disconnect. And yes, that definitely includes Kelowna.
With the average family home in our area costing nearly $700,000 and the data from Statistics Canada showing that the median household income for Kelowna is $71,127, you can see there’s the potential for some bumpy times ahead.
It’s little wonder that Canadians are borrowing record amounts.
Some may say, “move somewhere with more affordable housing”, and while you don’t have a right to live in a downtown penthouse, I believe that this is far too simplistic a thing to say.
Even a small amount of digging reveals that you can find more inexpensive homes in some very lovely areas of Canada, but in many cases, they will be in areas where work may be in short supply, and that’s not entirely helpful to the affordability situation.
One thing that could change this is more and more people working remotely online and in time that is perhaps a shift that will help alleviate this challenge but that is going to take a significant number of years.
Between now and then, how are locals going to afford to live in Vancouver, Kelowna, Toronto?
Where will all the buyers come from for the local real estate markets?
Ultimately, wages desperately need to catch up to local housing prices and the cost of living, and until that starts to happen housing affordability will remain a concern.
What do you think: is housing affordability a growing challenge in Canada? Is it a concern? I’d love to hear your thoughts. Mark Walker is a real estate agent and the broker/owner of Kelowna’s Walker Real Estate. His organization runs KelownaProperties.com, Kelowna’s most comprehensive real estate search tool. Walker Real Estate specializes in retirement properties, and you can contact their office at 250.764.4344.