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A recent study conducted by Rates.ca indicates that nearly half of families in Calgary will need to increase their income by at least $11,000 to afford an average-priced home. This illustrates a significant challenge many households face in attaining home ownership.
On a national scale, the affordability gap has reached $65,000, casting doubts on the dream of home ownership for many families across the country. Jack Mintz, affiliated with the School of Public Policy at the University of Calgary, noted the increasing trend of parents assisting their children in purchasing their first homes.
Understanding the Housing Affordability Crisis
Mintz expressed concern for lower-income families, highlighting their struggles to reach a standard of living that many aspire to achieve. This indicates a widening divide in housing accessibility.
Amid these challenges, some families are finding innovative solutions to cope. For instance, Calgary resident Bill Hornecker transformed his backyard woodshop into a living space for his college-aged son. Hornecker remarked that while it incurred some cost, it was a more viable option than searching for external housing, ultimately finding it an effective solution to utilize space differently.
Victor Tran of Rates.ca emphasized that the affordability gap is not narrowing, despite recent declines in interest rates. He pointed out that while some improvement is expected, it will not be sufficient to allow many buyers to enter the housing market. The most significant affordability challenges remain in larger metropolitan areas such as Toronto and Vancouver.
Source
globalnews.ca