Experts in the real estate market are calling for more supply to help quell the rising prices of homes. This is happening all across Canada, and interest rates are rising, showing us that the market is cooling off. But even so, we are seeing more and more people with a lost hope of owning a home. There are some that don’t even see changing their rental situation in the near future.
And this is not just Canadians that are in the low income bracket. Persons making “a good income”, even those who have money saved up for a down-payment are finding it hard to afford homes in their communities. More people are living with parents and hoping to purchase homes, but the dwindling list of available homes is getting worse and worse as the days go by. After all, when you move, you will have more than a mortgage to pay. There will also be other living expenses, and current inflation levels are so high, so is the cost of living.
Many people have downsized their house wish list to fit owning a home into your budget, and it is still not enough.
Why is the Market so Hot?
It’s all due to the lack of supply, says economists, politicians and advocates, but others like us here at SilverBeam Homes believe it is the lack of affordable housing that is preventing people from making the step into homeownership. This is actually pushing people out of the market as they get pre-approved and see what they can really afford. It is sad, because a place to live/sheltered is a basic human right. Sadly, many have been outpriced out of the housing market.
Affordability and 30% Pre-Tax Income
The CMHC – Canada Mortgage and Housing Corporation defines affordable housing as being less than 30% of an individual’s pre-tax income. This doesn’t just refer to home ownership, though, it also refers to market-rate rentals and subsidized housing as well.
The median pre-tax household income in 2020 was $55,700. This would make an affordable housing option slightly under $1,400 per month. Many people, even in double income households, think it will be well into their 40’s before they can afford a nice home, or even a good enough one. For many, the only way they may be able to afford a home is to move out of the country, or so many people think. But what if we told you you had another option?
Building a Home
Here at SilverBeam Homes, we can help you make your dream of owning a home a reality. Choose us to build you a more affordable house, and also a custom built house with the features and amenities that will meet your specific needs. If you feel like the current housing market is simply not meeting your needs, we may be able to help you. Housing is essential, and we can help you achieve your goals to own a home.