The cost of owning a home in Canada has skyrocketed in recent years, according to a new study.
According to the Canadian Real Estate Association (CREA), home ownership in Canada jumped to an average of $1.25 million in 2016, up from $1,200,000 in 2014.
This increase in price is due to many factors including the increasing cost of housing, taxes, and taxes on foreign buyers, CREA said in a release.
However, there are also a number of factors that have caused the price of Canadian homes to rise, including a number that are considered unaffordable.
“It’s no secret that affordability is the number one issue that we’re facing in our country, and we’re still struggling to fix that,” CREA spokesperson Adam D’Angelo said.CREA estimates that Canadians have lost an average $1 million worth of purchasing power since the financial crisis.
The number of Canadians living below the poverty line, or in the middle class, has also grown.
A study published in 2016 by the Canadian Centre for Policy Alternatives (CCPA) found that 40 percent of Canadian households were experiencing financial hardship due to rising costs.
“The housing market has taken a hit, but the affordability of housing has not,” CCPA president Jim Lantos said in the release.
“We need to address the housing crisis in our communities.”
While some have criticized the CREA’s figures for being inflated, others argue that the real estate industry is in a constant state of flux.
“With the economic downturn, it has been very difficult to find qualified and qualified buyers, so we’ve seen a number people move to cheaper, more affordable areas to be able to afford a home,” CREa’s D’angelo said.