Canada's real estate market has long been plagued by a shortage of affordable housing options, and it's not just a matter of geography. The country's housing crisis is rooted in a systemic issue that has its roots in the past, specifically with Canada's aging population - the Baby Boomer generation. This demographic has disproportionately influenced Canadian politics for decades, shaping policies that favor their interests at the expense of younger generations.
The recent election saw Canadians hoping for change, but it seems that the status quo remains intact. The new housing minister, Gregor Robertson, has already dampened expectations by stating that home prices should not decrease. This is a worrying sign that the country's housing crisis will persist, exacerbating the divide between the affluent Boomers and Gen Xers and the financially strained Millennials and Gen Zs.
The statistics are stark: according to Statistics Canada, there is a 65-67% gap between average Millennial household wealth ($493,423) and the equivalent figures for Boomers ($1,397,609) and Gen X ($1,485,654). This disparity is largely driven by real estate values, which have propped up the economy. Young Canadians are either excluded from homeownership due to high prices and interest rates or are struggling with rising mortgage payments.
The root cause of this issue lies in the Boomer generation's influence on Canadian politics. They have consistently exerted their power as the largest generation, shaping government policies that prioritize their interests. The growth of the public sector in the 1960s catered to their educational needs, while the 1990s saw a shift towards fiscal austerity and disengagement from housing - all in line with their goal of preserving and growing personal wealth.
The Boomer's ability to maintain this goal has been fueled by ceaseless real estate appreciation. As demographer David K. Foot noted, it was inevitable that once Boomers were housed, the housing boom would end. However, they have managed to prolong their stranglehold on the market well past their working-age primes.
The younger generations, particularly Millennials and Gen Zs, have been excluded from homeownership due to high prices and interest rates. They are also struggling with rising mortgage payments, making it difficult for them to build wealth. In contrast, older Canadians have seen the value of their properties soar over a longer period.
The flip side of Boomer hyper-engagement is consistent non-engagement among Millennials and Gen Zs. Many young people have abdicated their civic rights altogether, citing apathy or ignorance. This sociological distinction cannot be attributed to partisan differences; instead, it highlights the systemic issue that has been perpetuated for decades.
In conclusion, Canada's housing crisis is a complex issue that requires more than just short-term solutions. It demands a fundamental shift in how we approach housing policy and the role of technology - particularly AI-driven innovations in mobile apps - can play a crucial part in addressing this issue. By harnessing the power of AI to streamline processes, increase efficiency, and provide affordable housing options, Canada can finally break free from its boomers' legacy and create a more equitable future for all generations.