In 1976-80 it took just five years of full-time work to save up 20 per cent for a downpayment on a home in Ontario, today in the GTA it could take well over 20 years and counting to buy a home.
A troubling new report out from Vancouver-based campaign Generation Squeeze says Ontario has the second-worst economy for young people in the country, eclipsed only by British Columbia.
“No province reports a decline in full-time earnings (for the typical 25-34 year old) since 2003 except Ontario. That wouldn’t be so bad if Ontarians’ primary cost of living — housing — was also not going up in price,” said the lobby group’s founder and University of British Columbia professor Paul Kershaw.
The report, part of the Generation Squeeze’s Code Red campaign, suggests that a housing affordability crisis in Ontario is affecting quality of life and causing young people to put off important milestones, said Kershaw.
“They delay starting their own homes, moving out of their parents’ homes, and starting their own families,” he said. “This is compromising a range of family formation aspirations people have.”
Today many Toronto homeowners are spending upto 45 per cent of their household income on their mortgages, some are spending even more which is lowering their standard of living-out go vacations, eating out and extra-curricular activities for the kids.
Meanwhile, full-time earnings have fallen by $4,600 in that same time frame, putting Ontario’s young people below the national average when it comes to income for full-time work.
Things are not looking good for young Ontarians who were hoping that a good job could lead to a home of their own. – CINEWS