It Now Takes Over 6 Years to Save for a Down Payment in Canada — And That’s Just the Beginning
- Wayne Hillier
- May 20
- 3 min read
By Wayne Hillier, Real Estate Investing Masters
May 20, 2025 | Edmonton, AB If you’re trying to save for your first home in Canada, you may want to sit down for this:
It now takes more than 6 years for the average Canadian household to save for a 20% down payment.
That’s based on new data from the Desjardins Affordability Index, which assumes a household earning average income, saving 20% of their disposable income, and earning a 3% return. Even under those ideal conditions, it takes six years — and that’s before you factor in inflation, debt, childcare, or rent.
And in places like Ontario or B.C., where prices are much higher, it takes even longer.
The Income Gap Problem
Over the past 25 years, Canadian home prices have more than quadrupled. During the same period, average household income has only doubled.
This imbalance is pricing out more and more people. It’s also creating a growing class divide — those who already own property are benefiting from rising values, while those who don’t are falling further behind.
Meanwhile, the cost of renting has also surged. Between 2022 and 2024, rent inflation soared, and Desjardins now reports that 1 in 3 renters is at risk of missing a debt payment. This makes it even harder to save, compounding the problem.
Are We Building Homes — or Just Rentals?
Municipal and federal programs have pushed hard to increase housing supply, but the majority of new development across cities like Edmonton, Calgary, and Toronto is focused on rental density — not ownership.
We’re seeing perfectly livable single-family homes torn down and replaced by fourplexes, stacked row housing, and MLI Select infill projects. From a social housing standpoint, this may sound like progress.
But when you step back and ask the hard question — who is actually going to own all of this new housing? — the answer becomes uncomfortable.
The Future of Homeownership Is Being Reshaped
What happens when home prices continue to rise, incomes don’t keep pace, and ownership becomes mathematically impossible?
We’re already seeing the early signs of a shift:
Builders focus on cash-flowing rental projects, not single-family homes
Investors are racing to build the same stacked layouts across Canada’s mature neighborhoods
Fewer entry-level homes are being built or preserved
Resale home inventory is shrinking as infill replaces detached properties
It’s not hard to imagine where this is heading. A future where homeownership is no longer the standard — it’s the exception. Where passing down real estate is the only viable way to become a homeowner. And where owning a lawn becomes a visible symbol of wealth.
Final Thoughts
Canada’s affordability crisis isn’t just about interest rates or market cycles. It’s about a system that is slowly making traditional homeownership unattainable for the average family.
Saving for a down payment is just the beginning — and for many, even that first step is out of reach.
Listen to Today’s Episode:
Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier
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