Rising real estate is pricing many out of starting a family

by Ryan Smith20 Nov 2015
Rising real estate prices have made starting or expanding a family a luxury for more than half of Canadians, according to a new study.

According to a survey by RateSupermarket.ca, 55.6% of Canadians say their ability to start or expand a family is directly impacted by real estate prices. That number spikes to 72.11% among millennials.

“While it’s no surprise that kids are hard on the wallet – at a quarter of a million dollars to raise a baby to college-age – it is disheartening Canadians increasingly feel they must choose between home ownership and their desire to be parents,” said Penelope Graham, editor at RateSupermarket.ca. “Rising home prices, especially in Canada’s urban centres, are making it tougher for millennials to follow their family dreams.”

Rising home prices combine with the other expenses of raising a family to simply put it out of reach for many, according to the survey. For instance, more than 46% of millennials say existing debt prevents them from growing their family, and only 15.21% of all survey respondents saying that childcare was affordable in their area.

Graham said the high cost of raising families meant millennials needed to be serious about bargain-hunting when searching for homes.

“It’s more important than ever that would-be homeowners compare their mortgage options and boost their affordability with truly competitive financing,” she said.

Other survey highlights:
  • 54.5% said family costs were greater than they expected
  • 52.8% said they couldn’t start or expand their family in their current home
  • 49.4% said they had changed their minds about their desired family size because of the expected costs

COMMENTS

  • by Sandy Clark 11/20/2015 12:28:53 PM

    Home buyers should be looking for affordable cities to live in that still offer potential for their personal and professional growth. Nanaimo, BC on Vancouver Island is one of the most affordable cities with the ability to get into a house for around $250,000 for a modest home and many homes in the $300,000 to $500,000 range. If a first time buyer opted for a house with a suite, a healthy portion of their mortgage would be covered by a tenant.

    There are many opportunities in Nanaimo for affordable home ownership and it is a beautiful, harbour side community enjoying economical growth and sustainability. For those who work in Vancouver, BC where the price of housing is approximately 70% greater than Nanaimo, an option is to live in Nanaimo and commute to Vancouver as many Nanaimo residents do to enjoy a fabulous lifestyle and affordable home ownership. The seaplane from downtown Nanaimo has direct daily flights to downtown Vancouver or Richmond, or a cheaper alternative is to walk on the BC Ferry for approximately $16.50 each way, enjoy a leisurely, uninterrupted commute across the strait while dealing with emails or computer related work then drive from West Vancouver or catch the Vancouver City Bus to downtown Vancouver. The travel time is the same as commuting from the Lower Mainland to downtown Vancouver but without the stress of driving or dealing with traffic. If this is something you would like to explore or have any questions regarding central Vancouver Island and the numerous opportunities for lifestyle, home ownership and recreation, please contact Sandy Clark, Realtor for Royal LePage Nanaimo Realty on 250-668-9878.

  • by anti big government 11/20/2015 12:36:06 PM

    maybe a rant please feel free to critique, I am open to discussion

    The government has been invading the housing market, with tax ( land transfer municipal/provincial/federal coming with JT.. I'm sure give it time) Mortgage default insurance, building permit costs have tripled in a short period of time in my area, Hst on new, New home warranty programs that aren't worth a lick to the consumer, municipal property tax continues to rise making using the home more expensive, never mind buying it, to increase their revenues to continue to pay for unrealistic service models that they support, many services could be argued not essential, but more historical i.e,. postal service, libraries, etc.. (to many to mention) and so on. In my area the above taxes can total 100k on a 400k home.
    Keep voting for tax, borrow (rinse and repeat) and spend LIBERALS and you will keep paying more for properties, in purchase , using and selling. TORONTO ARE YOU LISTENING

    Words used by people who wouldn't understand the consequences of their decision, like investments, infrastructure and useless urban (rather than provincial) expensive transit systems that are expensive to build, however running these government behemoth make work projects makes the original cost of building them look like peanuts (building the sky dome was expensive running it was the real problem, that's why the province sold the 500 million dollar asset for 25 million to Rogers)

    Good luck to the youth of the country your elders have demolished your financial future and its going to get worse, cause some how you've been brain washed to vote for someone with good hair and no experience to run your country, no need to point out the Premiere of Ontario in adequacies you voted her in twice?
    We deserve the governments we elect
    Hope for the best plan for the worst folks

  • by Local Vancouver Realtor 11/20/2015 5:30:41 PM

    This problem has existed long before the liberals took over, which was just a few weeks ago. If you want to blame a government, blame the one who ruled and destroyed the reputation of our great country for the past 10 years. Perhaps you should ask why we are allowing so much of outside dirty money that is generated by acts of crime and corruption pour into Canada. These individuals who are mostly none Canadians and more than half they don't even live in Canada are purchasing the most prestigious properties at outrageous prices; practically pushing the locals out of the neighbourhoods that they are born and raised in. I am worried for the future of our kids.

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