Canada Housing Market

For many Toronto residents, the dream of homeownership has become increasingly elusive, a stark contrast to a time not so long ago when single-income families could easily buy a house in the city. A throwback advertisement that has resurfaced on social media highlights the dramatic rise in housing costs, showcasing a two-storey home from the early 1960s with a starting price of only $16,745 in the Finch and Leslie area, reaching up to $19,495 with an attached garage.

When adjusted for inflation, that $16,745 price tag in 1963 amounts to approximately $166,194.13 in today’s dollars according to The Bank of Canada’s inflation calculator. Yet, this figure pales in comparison to Toronto’s current average detached home price of $1,443,612 as of February 2024 — nearly ten times what it was 61 years ago.

This vintage ad, which has made several appearances over the years on platforms like Reddit and Facebook, ignites passionate debates about the state of today’s real estate market each time it circulates. Many commenters, reflecting on their own family’s experiences from the era of the advertisement, express concern for the current and future generations facing today’s market conditions.

One Facebook user reminisced about their father purchasing a home for $30,000 in 1965, with a sizeable lot, wondering how today’s youth will manage with mortgages that could extend into retirement. Another pointed out the significant changes over the decades, noting how a manufacturing clerk in the late fifties could afford a new four-bedroom home and a new car every few years on a single income, a feat nearly unimaginable today even for dual-income professional households.

Comments also touched on the broader economic shifts contributing to the housing affordability crisis, including the decline of working-class families’ purchasing power due to the weakening of unions. The consensus is clear: despite inflation adjustments, buying a home today presents a formidable challenge, with many new homeowners finding themselves financially stretched thin by their mortgage payments.

As Toronto’s housing market continues to soar, requiring an average annual income of $214,100 to afford a home, the financial pressures extend beyond just acquisition costs. Condo owners face rising maintenance fees, further compounding the city’s cost of living and underscoring the profound transformation of Toronto’s housing landscape since the 1960s.