Waterloo Region, well-known for its thriving technology sector and prestigious academic institutions, has long been considered an ideal location for homeowners. However, the escalating housing crisis makes the dream of homeownership increasingly unattainable.
“The housing markets of Kitchener, Waterloo, and Cambridge have simply become too costly,” lamented local resident Vidya Sundar. For many long-standing residents, the housing affordability crisis is compelling them to consider selling their properties, often at a loss.
Information from the Waterloo Region Association of Realtors (WRAR) indicates that the average price of residential properties in the region in September amounted to $757,753, a 0.7 per cent increase as compared to the same month in 2022. Despite an uptick in new listings this September, the reported sales remained low with only 527 out of 1,400 homes sold.
Sundar voiced the grim reality, “Those in my neighborhood are increasingly wishing to purchase outside the region. Navigating the current market does seem like a herculean task.”
He continued, “While the task is daunting, a clear understanding of homeownership costs can prove beneficial, a transparency that’s beholden on the government.”
Based on a recent report by WRAR, an alarming number of residents find it difficult to bear their housing costs, with 40% living in unaffordable accommodations. Notably, the survey divulged that 27.7% of inhabitants are contemplating relocating from the region in search of affordable prices.
Sundar expressed a common sentiment, “The skyrocketing prices have triggered a migration trend, with people exploring beyond the KWC areas in an attempt to curtail costs.”
There have been efforts to offset the affordability crisis, including rent supplement initiatives and incentives for affordable housing projects. Yet, residents continue to grapple with challenging decisions.
“Shared accommodations are becoming the norm, with two to three individuals commonly occupying a single room. This appears to be the only viable strategy against the inflated housing prices,” Sundar observed.
Looking ahead, the next Bank of Canada interest rate announcement scheduled for October 25, is anticipated to keep prospective buyers in anticipation, eagerly awaiting the potential impact on the housing market.
