{"id":4763,"date":"2023-02-17T07:00:00","date_gmt":"2023-02-17T12:00:00","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=4763"},"modified":"2023-02-15T15:41:54","modified_gmt":"2023-02-15T20:41:54","slug":"the-generation-gap-buying-a-home-today-vs-20-years-ago","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/the-generation-gap-buying-a-home-today-vs-20-years-ago\/","title":{"rendered":"The Generation Gap: Buying a Home Today vs. 30 Years Ago"},"content":{"rendered":"

Is buying a home easier or harder than it was 30 years ago? That debate \u2013 and the answer \u2013 varies depending on the historical factors considered and your own financial position and lifestyle preference.\u00a0<\/span><\/p>\n

We explore how times have changed by looking at prices, demographics, mortgage rates, and house type and location.<\/span><\/p>\n

Enjoying our content? Subscribe to our free <\/i><\/b>weekly newsletter<\/i><\/b><\/a> to get Canadian real estate market insights, news, and reports straight to your inbox.<\/i><\/b><\/p>\n

Prices<\/span><\/h2>\n

Then: A long slump<\/span><\/h3>\n

Going into the 1990s, Canada\u2019s housing market seemed robust, but then the economy slid and prices stagnated for most of the decade. In Toronto, <\/span>prices peaked<\/span><\/a> at $254,197 in 1989 and didn\u2019t reach that level again for more than 12 years.<\/span><\/p>\n

Statistics from the Canadian Real Estate Association show that the national average price was $142,091 in 1990 and $154,768 by 1997 \u2013 an <\/span>8% increase<\/span><\/a> that, according to Financial Post columnist Garry Marr, is \u201cpaltry by today\u2019s standards.\u201d\u00a0 Even two years later, in 1999, the national average price was still just $158,000.<\/span><\/p>\n

Now: Prices continue to adjust to the post-pandemic market<\/span><\/h3>\n

The current housing landscape is still in a period of recovery after staggering price gains during the pandemic followed by rapid interest rate growth that restricted buying power. The <\/span>national average price<\/span><\/a> for a home sold in December 2022 was $626,316, which is a 12% drop from December 2021\u2019s average home price of $711,579. One of the overriding themes of 2022 was the lack of inventory available for potential buyers.<\/span><\/p>\n

Nonetheless, there have been some areas that have experienced monthly gains in prices. Saint John\u2019s average price increased by 6.5% to $284,899. Calgary\u2019s price also grew by\u00a0 2.7% to $518,341.<\/span><\/p>\n

Although it is true people are making more money than in the past, incomes have not kept pace with prices. A recent report shows that there are only <\/span>five major cities in Canada<\/span><\/a> that provide housing that is affordable for families with a single median income earner.\u00a0<\/span><\/p>\n