Tierra MallorcaThe dream of homeownership has long been a cornerstone of financial stability and personal achievement for Canadians. However, this dream is slipping further away for many young people as housing prices continue to soar. University of Alberta students are already grappling with rising rents in Edmonton. This only makes the possibility of transitioning from renting to owning a home feel increasingly unattainable. This financial strain not only impacts people’s immediate living situations, but also casts a long shadow over their mental health and future aspirations. By understanding the depth of this crisis and implementing targeted solutions, we can provide hope to a generation in need.
Canada’s housing market has drastically changed over the past decade, with prices rising at a pace far outstripping wage growth. According to the Canadian Real Estate Association (CREA), since 2000 the median sale price for single-detached homes in Edmonton has risen 10.9 per cent year-over-year to $490,000 in 2024. Similarly, data from WOWA.ca, a personal finance encyclopedia, indicates that Edmonton’s average home price increased by 14.6 per cent in just one year, reaching $436,401 by late 2024. These trends mirror patterns seen on a national level. Such sharp increases make it nearly impossible for young people to save for a down payment. Especially for those managing other financial obligations, such as tuition and high living expenses.
Moreover, projections by the Canada Mortgage and Housing Corporation (CMHC) suggest that housing prices will continue to climb into 2025 and beyond. Prices are expected to return to peak levels and set new records by 2026. For U of A students, who often reside in high-demand areas like Garneau and Whyte Avenue, these trends heighten the already challenging rental market. The lack of affordable housing near campus forces many students to compromise on location or quality. This can massively impact their day-to-day lives and mental health.
The financial pressure of an unattainable housing market extends far beyond economic constraints. It also deeply affects the mental health and life choices of young Canadians. A survey conducted by the Bank of Montreal (BMO) found that 90 per cent of Gen Z and 88 per cent of younger Millennials experience financial anxiety due to concerns about their overall financial situations. The U of A Students’ Union (UASU) has rightly raised alarms about a housing shortage that leaves many scrambling to find accommodations.
This financial stress not only undermines mental well-being but also leads to delays in significant life milestones. Among adults who have or had student debt, 59 per cent of them said it caused them to delay financial milestones. Those milestones can include investing in businesses or starting families. A feature from Maclean’s highlights how the inability to own a home contributes to feelings of stagnation and failure. Missing what is often seen as a marker of adulthood and stability leaves many young people pessimistic about their futures.
While the challenges are daunting, there are actionable steps that governments, universities, and communities can take to alleviate the housing crisis for young Canadians. Policymakers should prioritize affordable housing initiatives, such as increasing funding for housing projects. Additionally, introducing tax incentives for first-time home buyers under 30 could provide much needed support. Addressing speculative buying and foreign investment, both factors that drive up housing prices, is equally important.
Educational institutions like the U of A can play a pivotal role in supporting their students. Offering financial literacy workshops tailored to the realities of the current housing market could empower students to make informed decisions about their financial futures. Collaboration between universities and city planners to develop affordable housing options near campuses would also significantly benefit students.
Moreover, young people can benefit from innovative programs that facilitate the transition from renting to owning. Rent-to-own models or government-backed savings plans that match contributions for a down payment could make home ownership more accessible. By providing targeted support, we can help young Canadians move closer to achieving their dreams of home ownership.
The rising cost of housing is not merely a financial issue. It’s a societal one that affects the mental health, career decisions, and the overall well-being of an entire generation. For U of A students and their peers across Canada, the barriers to home ownership symbolize broader systemic inequalities that hinder progress. Addressing these challenges is about more than housing — it’s about restoring hope and stability to young Canadians. By implementing thoughtful policies and encouraging supportive communities, we can ensure that home ownership remains an attainable goal. This is an important step in empowering a generation to build secure and fulfilling futures.
