The pullback in house prices since early 2022 has done close to nothing to make housing more affordable. Gen Z and millennials, how do you feel about that?
We’re at a pivotal time in the long-running story of housing affordability in Canada. Mortgage rates remain high compared to where they were 18 months ago, and home prices are showing signs of stabilizing and even rising in some areas. More new homes would help, but the latest numbers show housing starts dipped last month compared to February.
To find out how young adults are processing these developments, I put together the following anonymous survey. Please fill it out if you’re between 20 and 40 years old and don’t own a house.
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Rob’s personal finance reading list
The real problem with house prices
An argument that governments will never take bold steps to make housing affordable because people who already own homes don’t want the value of their property to decline. Totally.
Best U.S.-dollar credit cards
If you’re in the U.S. for long periods or visit often, having a U.S.-dollar credit card could save you money on foreign exchange fees. Here’s a comparison of eight U.S.-dollar cards, most of them with low annual fees.
The CPP: Paying more, getting more?
A review of how recent reforms of the Canada Pension Plan have increased premiums, and who will benefit from higher payouts.
These $400 shoes lasted 10 weeks
An elite young soccer player spends more than $400 on a pair of limited-edition Nike shoes – the Zoom Mercurial Superfly 9 Elite CR7 Firm Ground Cleats. Ten weeks later, there’s a tear in one of the shoes. Judge the shoe company and not the buyer.
Ask Rob
Q: My question relates to dividends and taxes. Is there a general threshold under which one can earn dividend income tax-free? I’m a retired senior in Ontario. I retired 10 years ago with the impression that one could make up to $40,000 in dividend income annually with no tax obligation.
A: I touched on this in a recent column looking at how dividends are taxed in different provinces.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
A how-to on income-splitting, which allows couples to reduce the combined amount of tax owing.
The money-free zone
One of my favourite music websites is Cover Me – visiting is like falling into a sinkhole of cover song amazingness. Check out the full albums recreated with cover versions. Example: History, the greatest hits of the shlocky but undeniably catchy band America. This cover of Daisy Jane by a group called Underground is the best. Make sure you read the notes for each song.
Listen to this
Two economists talk about why rents are rising so quickly, even as house prices fall.
Who I’m following on Twitter
Moshe Milevsky, finance professor and author of many books and articles. Always a worthwhile perspective on money, investing, economics and more.
ICYMI
- Soaring rents mean living with roommates can cost $1,000 or more per person
- Are retirees forced to draw down their RRIF balance too quickly?
- Five tax tips for self-employed and gig workers
- Tax tips for families going through life transitions
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Why millennials and Gen Z are Alberta-bound for a more affordable life • Rising interest rates brought pain for new homeowners – and opportunity for house hunters • Why more Canadians are choosing to be childfree or delay parenthood • Love in the time of inflation: How to manage rising costs when dating • You're not bad at money – you're suffering from money shame • Retirement might look different for Gen Z and millennials. Here's how to plan for it • Recession-beating tips for the job market, housing, investing and the cost of life • Is the middle class dead for millennials and Gen Z?
- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
