Buying a house is another point where the experience of older Canadians is unlike what todays younger generation faces. Canadian Real Estate Association data show the average national price of a home in mid-1984 was $76,214. If houses kept up with inflation and that would be a pretty good result all on its own the average house would now cost $154,587. In April, the actual average was $369,677.
Thats an annualized gain of 5.8 per cent across the country. In cities like Toronto and Vancouver, the yearly increases are even more pronounced.
House prices themselves are an abstract number the real question is how affordable a home is. Data from a 2011 Conference Board of Canada study on income inequality shows the average family after-tax income in 1984 was $48,500. In 2009, the latest date included in the study, income levels had risen to $60,000. In 1984, a house might have cost a family 1.6 times its annual income. Today, were looking at a multiple of something around six.