Jul 24, 2019
By Jane Brown
It seems parents are not just helping out with buying their kids’ first homes, more than a third of them are also chipping in for rent.
Results of a new Leger poll comes in the wake of a study on housing affordability, which found minimum wage workers in Canada need to work much longer hours to afford a decent two bedroom apartment.
Benjamin Tal, deputy chief economist at at CIBC World Markets Inc. isn’t surprised by the findings, pointing out, rent is extremely expensive and parents are helping.
Tal also calls this trend “the biggest contribution of one generation to another ever” in terms of financial assistance.
This worries him because he says, “Canada has a significant income gap, and this kind of situation is actually widening the income gap because we’re actually transferring the income gap into the other generation through the housing market.”
Tal would like to see more rental apartments built, because right now the “rental market is the condo market,” especially in big cities like Toronto and Vancouver.