That graph is insane
cries in Canadian
This is definitely an average. Top earners dragging up the average makes it a shit number to use in most economical statistics. Median is better for income figures almost always these days.
Still shocking that Canada is this much worse than the US. It’s also horrible here.
Yes, my takeaway here is that the wealth gap in Canada is not as bad as in the USA (assuming that the median income barely increased in both countries)
This graph is so location dependent for the US. Where I am, home prices have gone up well over 10x since 1980. There are many places in the US where it is just as bad, or even worse than the average in Canada.
The issue in Canada is also location dependent, some areas 10x plus others not. But even worse is that housing across the board has gone up as people flee the high price areas, bringing demand to the cheaper areas, and therefor raising the prices.
There are a few areas that have become so impossible to afford (Canmore, Banff, Vancouver etc.) that the lower earning workers are living in tents (this also happens in the states but is new there I hear).
Yeah my home town that’s a little over an hour outside of a city has small houses selling for half a million (CAD) now. I don’t even know how anyone from the town would afford that on their retail or factory work income
I hate it when the chart doesn’t say what it depicts. I assume those are averages, not median. The average hides that fact that most people’s real income has barely grown in 20 years. All the income growth comes from the top 20% or so, you don’t see that in the average.
Did they stop making houses in Canada?
If I recall correctly, there is a ton of foreign money buying up all the housing in Canada, which drives up pricing.
It’s just money in general. Not every province tracks foreign ownership of residential housing, but those that do show only about 5% of houses are owned by foreigners. It’s mostly rich Canadians and Canadian businesses that have purchased a huge amount of housing as a form of market speculation.
However, houses being worth a small fortune is good for anyone who already owns a house, which is most Canadians. The issue is that not everyone wants house prices to drop.
I’ll never understand why people think “only” 6.2% of a consumer base can’t heavily distort a market based on benchmarks.
We all forgetting about NFTs and Crypto?
Does that include businesses that are registered in Canada but primarily held by foreigners?
This is one of many pieces of the puzzle. There are also terrible zoning laws preventing density in cities. Also, to be clear, immigration is essential to our country and we have a responsibility as a wealthy western to country to accept refugees. However, we have been increasing our immigration rates a ton and our new builds has been really low. Many of these new Canadians are sold a false promise.
Housing is a main factor to Canada’s GDP which is scary, so the government is propping it up.
Dataisterrifying
Not if you buy at the dips like I did.🙃
This graph would look much different if it compared home prices in 2022-2023.
What do you mean
Home in the US shot up in price around the end of 2021 and peaked earlier this year. I wonder how the comparison looks after that spike.
This is what a bubble looks like.
This is what a government enabled bubble looks like that has no interest in “solving” the issue.
This was the slowest moving train wreck I can think of.
With inflating house prices contributing to GDP figures, how much interest do you think the government will have in tanking the market to take from the haves and give it to the have nots?
As with any essential good/service (looking at you, US healthcare) commodiying housing was a catastrophic mistake. The essential nature of it inevitably creates market failure - the consequences of which are plain to see in that graph.
Someone better at such things than me needs to add a trendline for the ratio of median employee to median CEO earnings for publicly traded companies over the same period of time. Maybe it wouldn’t look like I think it would - but maybe it would.
Interesting how 2008 dramatically reduced prices in the US but basically did nothing in Canada
wot dey doin ova der?
New Zealand says hello.
How does this fit with purchased by non Canadian born people?
So, are we screwed?
Does anyone else see this post with -1 downvotes?
