Canadian Home Prices Outpaced Wages 7-to-1 Since 1981

If it feels like buying a home in Canada has become increasingly out of reach—you’re not imagining it. A recent deep-dive from Statistics Canada reveals that over the past four decades, real estate prices have skyrocketed at a rate nearly seven times faster than wages.

Wages Have Barely Budged Since the Early ’80s

From 1981 to 2024, the median real hourly wage for full-time workers (30+ hours/week) increased by just 24%. That’s an average annual growth rate of 0.53%—far from anything you'd call a boom.

The picture is even tougher for part-time workers. Their real wages only grew by 6% over the same 43-year period, meaning many are earning virtually the same in real terms as they were in the early ’80s—despite higher costs of living and skyrocketing housing prices.

Real Estate Has Left Wages in the Dust

During that same period, real (inflation-adjusted) home prices in Canada jumped 163.5%, making housing less accessible for younger Canadians and first-time buyers. Even with recent cooling in the market, real estate prices have consistently outpaced income growth, creating a long-term affordability gap.

Here’s the bottom line: if wage growth had kept pace with housing, median full-time incomes today would look dramatically different. Instead, homeowners from previous generations have seen their net worth balloon through home equity—while many younger Canadians are left on the sidelines.

Generational Divide: Equity vs. Access

This disparity has created a sharp divide between generations. Older homeowners—many of whom bought when prices were far lower—now see real estate as their primary source of wealth. For them, policies that keep prices elevated seem like a good thing. But for younger buyers and newcomers to Canada, these same prices represent a massive barrier to entry.

There’s also a looming question: what happens when it’s time for older homeowners to cash out? Tapping into home equity or downsizing only works if there’s a younger generation ready (and able) to buy. Without affordability, we risk a long-term liquidity issue where wealth is locked up in assets that fewer people can afford to purchase.

What This Means for You

For those looking to break into the market, this data highlights just how important financial strategy and planning have become. At Admore, we understand the changing landscape and are here to help guide you through it—whether you’re buying your first home, refinancing, or planning your next move. We’re not just watching these trends—we’re helping people navigate them. If you're feeling priced out or overwhelmed, talk to us. We’ll help make homeownership a reality, not just a dream. Source: Statistics Canada