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Canada standard of living deteriorates as housing costs rise: UBC report

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guest | 19 Oct 2011, 02:46 PM Agree 0

Part of the reason is that housing prices have increased so much, beyond what rising incomes can cover, said Paul Kershaw, the report’s author and an associate professor at UBC’s Human Early Learning Partnership (HELP).“What we’re seeing is something that I call ‘Generation Squeeze,’” he said. “The generation raising young kids today is squeezed for time at home, squeezed for income because of the high cost of housing, and squeezed for services like child care that would help them balance earning a living with raising a family.”Nationally, the inflation-adjusted median income from 1976 to 1980 was $65,360, compared to $68,580 in 2005 to 2009. Yet the average housing cost was $192,390 in 1976, and was $339,045 in 2010, a rise of 76%, said the report.A similar projection was made for each province. Since 1976, despite an increased share in income from young women in households, total household income has dropped 6% in British Columbia since 1976, when adjusting for inflation. Yet at the same time, the average B.C. cost of housing went from $202,635 in 1976 to $505,178, up 149%. No other province saw such a disparity.“No other province in Canada reports a decrease in the average young couples’ household income,” said the report. “Nor does any other province report as large an increase in the cost of housing as does B.C. Together, these trends reveal that the standard of living for the generation raising kids has deteriorated more in B.C. than any other part of the country.”A very different picture has been seen in New Brunswick, where inflation-adjusted median household income rose 11%, from $53,380 to $59,280, while the average cost of housing was a more comparable 15% gain from $136,953 to $157,240.
  • Randy | 28 Oct 2011, 07:15 PM Agree 0
    It is interesting you label BC as worse off than the rest of Canada. The reason real estate prices have increased in value is because everyone wants to live here! You pay more for the best in a free market. What are you guys teaching at UBC anyways?
  • Randy | 28 Oct 2011, 08:15 PM Agree 0
    It is interesting you label BC as worse off than the rest of Canada. The reason real estate prices have increased in value is because everyone wants to live here! You pay more for the best in a free market. What are you guys teaching at UBC anyways?
  • Andrew | 29 Oct 2011, 05:47 PM Agree 0
    Randy:

    In terms of standard of living, the numbers indicate that BC IS much worse off than the rest of Canada.

    And when you say everyone wants to live here, we're speaking particularly about Chinese millionaires who have kept our housing market soaring for years now. What's your free market solution for families living in BC? Should they simply move away and give up their homes to those millionaires the free market has created?
  • Andrew | 29 Oct 2011, 06:47 PM Agree 0
    Randy:

    In terms of standard of living, the numbers indicate that BC IS much worse off than the rest of Canada.

    And when you say everyone wants to live here, we're speaking particularly about Chinese millionaires who have kept our housing market soaring for years now. What's your free market solution for families living in BC? Should they simply move away and give up their homes to those millionaires the free market has created?
  • Susan | 29 Oct 2011, 07:27 PM Agree 0
    Randy, your right BC is so great. Its worth buying a million dollar home to have a summer with 3 weeks of heat and now the cold wet depressing rain until next summer.
  • Susan | 29 Oct 2011, 08:27 PM Agree 0
    Randy, your right BC is so great. Its worth buying a million dollar home to have a summer with 3 weeks of heat and now the cold wet depressing rain until next summer.
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