Canadian Home Prices Climbed 7x Faster Than Income, & Ontario Unemployment Surges

Canadian home prices rose nearly seven times faster than incomes over the past four decades, creating a deep affordability gap that affects millions. From 1981 to 2024, real home prices climbed by roughly 163.5%, while median real wages for full-time workers grew just 24% over the same period—a gain of barely half a percent annually. This stark imbalance means housing costs vastly outpace earnings, especially for younger Canadians trying to enter the market.

On average, full-time workers saw only modest wage growth—6% over those 43 years for part-timers—versus the skyrocketing cost of homes. That means while property values ballooned, incomes crawled forward. Homeownership, once an attainable goal, now feels out of reach for first-time buyers and middle-income families across the country.

The wage-price disconnect has widened intergenerational wealth divides. Older homeowners who bought decades ago have benefited from massive property appreciation that dwarfed their income gains. Housing equity now forms the backbone of their net worth, giving them a powerful incentive to support policies that protect or boost prices. In contrast, younger generations and newcomers find themselves shut out and struggling to save enough for down payments.

Meanwhile, Ontario is facing an economic strain of its own: its unemployment rate rose to 7.9% in May, nearly a full percentage point above the national average. What makes this shift unusual is that Ontario hasn’t been shedding jobs—instead, it’s added positions, just not fast enough to match its booming population. That mismatch means more people are competing for work, pushing the unemployment rate to levels typically seen only during economic downturns.

That spike in jobless rates represents a rare situation outside of a recession, underscoring a growing economic challenge. Despite solid employment gains, the province’s pace of job creation is being outstripped by population growth. Slowing momentum in hiring could worsen conditions in the months ahead, raising concerns about consumer spending and overall economic health across Ontario.

Taken together, these trends paint a troubling picture: housing inflation that far outpaces wage increases, paired with rising unemployment in Ontario. For policymakers, the task is daunting. They must figure out how to improve housing affordability while boosting job creation. Without steps to balance supply, control costs, and foster broader economic growth, many Canadians—especially the young and newly settled—may never close the gap between income and the dream of homeownership.