https://twitter.com/mikepmoffatt/sta...5JZtK3XQA42sog
Pulling out a few snippets from this thread illustrating how brutal things are for younger folks or folks trying to get into the housing market.
Quote:
Short thread time. TL;DR version: We underestimate how affordable housing was in the 70s and 80s and overestimate how affordable it was post-2000 because traditional analyses ignore saving for a downpayment.
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Yes, interest rates were high in the 1970s and early 1980s, but a family could make a 25%+ downpayment on a single year's income.
By 2017, this fell to 10%.
For single people in Toronto in 2022, it's down to just 3%.
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In short, our affordability metrics, which are all based on assuming a 20% downpayment, are highly flawed because they fail to incorporate how the difficulty of saving that 20% changes over time.
It was far, far easier in 1977 than it was in 2017.
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Current: 2019 Acura RDX
Gone: 2007 Acura TSX, 2008 Mazda 3 GT, 2003 Mazda Miata LS, 2008 Mazda Miata GT PRHT, 2003 Mazda Protege 5
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