Homeownership and Financial Security, and Young Canadians Hold on to Homebuying Dream

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

Pierre Poilievre Unveils his Housing plan 

Conservative Party Leader Pierre Poilievre recently outlined his plans for switching up the federal government’s approach to housing. At a press conference in Ottawa on Monday Poilievre proposed removing the sales tax on new homes that sell for under $1 million, which received plenty of praise from the people who build new homes. The change would save buyers about $40,000 in closing costs on a newly built $800,000 home. However, the Conservative Leader said he would finance the program by eliminating the Housing Accelerator Fund and Housing Infrastructure Fund, which were created to support targeted housing development initiatives. 

The GTA Condo Market is a Mess  

The condo market in Toronto is bad. I know we say that every week, but it’s really bad right now. According to a new report by BILD only 247 GTA condos changed hands in September, 81% less than September 2023, but that’s not all. There are also a ton of units in “limbo,” according to Urbanation president Shaun Hildebrand. Hildebrand said there are about 24,000 unsold units in development, 9,000 resale listings, and another 5,000 nearing completion — a supply surplus that would take over 4 years to sell at the current rate, with thousands more hitting the market next year.

A Country of Have-Homes and Have-Nots

Homeownership really is the clearest path to generational wealth in Canada. In its annual survey of financial security, Statistics Canada found that Canadian families had a median net worth of $519,700 in 2023, but the gap between owners and renters widened. Older Canadians who owned their home and had an employer-sponsored pension had a median net worth of $1.4 million, while those who had neither were worth $11,900. Young families who owned a home also saw their net worth increase by $142,800 since 2019, putting them at an average of $457,100, compared to a $26,7000 bump for those who didn’t.

Young Canadians Refuse to Give Up on Homeownership  

Bad vibes won’t be enough to stop young Canadians from taking their shot at the housing market. According to Scotiabank’s Housing Poll most Millennials and Gen Zers feel like buying a home is unattainable, yet the majority of those aged 18 to 42 are still determined to get into the market soon.  According to the survey, the proportion of owners in this age cohort dropped from 47% in 2021 to 26% today. In fact, 29% are living with family or parents, up from 20% three years ago. At the same time, 58% of non-owners said they plan to buy in the next five years.

Toronto Steals from Steeltown  

Toronto is copying its neighbour’s work and hoping they got the right answer. Last week Toronto City Council unveiled a proposed bylaw to address renovictions that resembles the work Hamilton submitted in April. The proposed bylaw, which would come into effect on July 31, requires landlords to obtain a building permit, apply for a renovation license, pay a $700 fee, and submit a report that explains why the work requires the tenant to leave before renovations can begin. They will also need to offer tenants comparable housing at similar rents, a moving allowance, and rent-gap payments while construction is ongoing.

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