President-elect Donald Trump has promised to loosen building regulations and deport millions of undocumented immigrants to increase the supply of homes. Meanwhile, after promising to build 3.9 million homes by 2031 back in April, Prime Minister Justin Trudeau replaced his housing minister with Nathaniel Erskine-Smith in December. Erskine-Smith has yet to propose any additional policies to solve the crisis.
In 2023, the average Canadian home cost $670,389, more than 10 times the average Canadian annual income. In 2003, for comparison, a home cost just 5.8 times the average household income. And in the US, median household income increased by about 60% between 2000 and 2020, while the average price of a home nearly doubled.
Small wonder that people in both countries are increasingly pessimistic about the prospect of homeownership. A Gallup survey from May found the vast majority of Americans (76%) say it’s a bad time to buy a house. It seems that on both sides of the border, more and more people are giving up on ever owning a home.
Here’s a look at the increase in home prices and median household income in Canada and the US, from 2000 to 2020. We have to ask: Is homeownership even a dream worth pursuing now? We’d love to hear your thoughts. Write to us here.
