For all his talk about the middle class, Justin Trudeau’s policies or, perhaps lack of them, is actually deepening the gap between rich and poor in this country.
A report on Canadians’ ability to buy a home – the primary vehicle of family wealth accumulation – is at the root of this story.
RBC’s economics unit notes that renters are being pushed further and further away from home ownership as rising costs put that dream out of reach. And, even for those who do own a home, the squeeze is clearly evident as ownership is getting more expensive.
According to the bank’s analysis, only about one-third of home owners are able to finance and maintain their property on their income alone. Half of us could qualify twenty years ago.
For renters, it is simply not viable as they are generally spending more than they earn with no possibility of scraping together a down payment.
The bank warns of a future where the discrepancy between Haves and Have Nots will grow, leaving a larger percentage to rely on the public treasury to live as they will be unable to finance their own retirement.
