Sky high house prices are the delight of one generation and the doom of another. Baby boomers’ happiness directly correlates with the increase in house prices. They can cash out and live the retirement they dreamed of while the younger generations are handcuffed from creating the family life that they dreamed of.
The high cost of buying into the housing market is causing many couples to delay having a family. A new survey from RateSupermarket reports that:
> 56% of respondents said their ability to start or expand their family has been impacted by house prices in their region
> 72% of millennials said their ability to start or expand their family has been impacted by house prices in their region
> 52.8% of respondents said they couldn’t expand their family in their current home
> 49.4% said the costs involved have caused thesm to change their minds about the size of their family
The house prices in Toronto and Vancouver are not for the faint of heart, with the average single-family home in both cities currently above $1 million. It’s virtually impossible for a young couple to buy into the housing market today so with few options, condos are becoming more attractive to young couples and young families.
The study from the Canadian Centre for Policy Alternatives (CCPA) senior economist David Macdonald estimates that:
A 20% decline in house prices across Canada would put 169,000 families under age 40 “underwater” on their mortgages. That’s one in 10 families in that age group. If prices fell 30% – in line with the maximum by which the Bank of Canada says Canadian house prices are overvalued – there would be 294,000 underwater families under 40, or one in seven
It doesn’t seem right that young couples feel that they can’t start a family because they can’t afford to buy a house. Or even worse, they chase their dreams, buy a house that they really can’t afford and land up deep in debt. If you’re struggling financially, seek professional help as soon as possible. The Ira Smith Team approaches every file with the attitude that financial problems can be solved given immediate action and the right plan. Contact us today so that Starting Over, Starting Now you can put your financial problems behind you and plan your future.