A new report confirms what many Canadians have felt for years: real estate prices have far outpaced wages, making homeownership increasingly out of reach for younger generations.
According to Statistics Canada and data compiled by Better Dwelling, real home prices in Canada increased by over 163% from 1981 to 2024, while median real wages for full-time workers grew by only 24% during the same period. That means home prices have risen nearly seven times faster than wages over the past four decades.
Real Wages Have Barely Moved Since the Early 1980s
From 1981 to 2024, the median inflation-adjusted hourly wage for full-time employees (those working 30+ hours per week) increased by just 24%, representing an average annual growth rate of only 0.53%.
For part-time workers, the situation is worse. Their median real wages rose just 6% over the same 43-year period, offering little protection against rising living costs. This slow growth means that most workers today earn wages that are almost stagnant in terms of purchasing power when compared to previous generations.
Home Prices, On the Other Hand, Soared
During the same timeframe, real home prices jumped by 163.5%, even after accounting for inflation and recent market corrections. The indexed data shows a clear widening gap between income and housing costs.
This imbalance explains why many younger Canadians, newcomers, and low-to-middle-income families feel locked out of the housing market. As wages crawled upward, real estate values surged, transforming homes into speculative assets rather than accessible places to live.
Generational Divide in Wealth and Policy Support
Older generations, who bought into the market decades ago, have seen property values appreciate far beyond their income growth. In many cases, home equity now represents their largest source of wealth.
As a result, many homeowners may favor policies that protect or even inflate property values, unintentionally widening the divide. Meanwhile, younger Canadians are struggling to save, invest, or afford entry-level housing in major cities.
What This Means Moving Forward
The growing gap between wages and home prices raises concerns about long-term affordability, intergenerational inequality, and even economic liquidity. If younger generations can’t afford to buy, the system eventually hits a wall, older households may struggle to sell or access the value of their homes without new buyers entering the market.
Unless wages begin to catch up or housing prices correct meaningfully, this imbalance will continue to pressure future economic growth and social stability.
References
- Better Dwelling. (2025, June 10). Canadian Real Estate Prices Rose 7x Faster Than Wages Since 1981.
This Week’s Top Stories: Canadian Home Prices Climbed 7x Faster Than Income, & Ontario Unemployment Surges – Better Dwelling - US Federal Reserve Economic Data (FRED). (2024). Real Home Price Index, Canada.
https://fred.stlouisfed.org/
Canada Housing Market 
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