A decade ago, Canadians were spending almost twice as much on their homes as they do today.
Now, it’s back to a level of home ownership that has never been seen before.
But the challenges of a stagnant economy and a slow housing market make it difficult for many to afford the typical amenities and luxuries found in a luxury home.
Many Canadians may find that a luxury lifestyle is no longer a viable option for many of them.
With a growing number of young people finding themselves in a job market where they may have to compete with someone with a bigger salary, there is also an increased demand for luxury goods and services, such as designer clothes, accessories and home furnishings.
The average price of a home in Canada increased by 13 per cent between 2005 and 2016, while the average price for a condo and single-family house increased by 18 per cent and by 22 per cent respectively, according to data from the Real Estate Board of Greater Vancouver.
While some of the higher prices may seem out of line with recent years, some experts say it’s a sign that the market is becoming more competitive.
“I would not call it a bubble, but I would say it is very, very close,” said Andrew Regan, a senior vice-president with the Regan Group of Canada.
The trend is seen across all age groups and income levels, he said.
The Regan group’s research found that in 2016, the median household income for seniors aged 65 and over was $84,000, while for people with incomes under $25,000 it was $50,000.
And the trend is expected to continue.
The national median income for those aged 55 to 64 rose to $90,000 from $85,000 in 2016.
The number of seniors in the workforce is also expected to increase in the coming years.
Statistics Canada reports that employment among Canadians aged 25 to 64 has grown by nearly 14 per cent since 2010.
According to Statistics Canada, the number of workers aged 55 and over increased by 5.5 per cent in the last year.
For those aged 25 and under, the unemployment rate for those under 25 is now 5.9 per cent.