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The East Coast had lower home prices as did Prairie provinces like Alberta, with their dependency on oil and unemployment haunting the real estate market of some of the largest cities.

The report finds average home prices across Canada would need to drop by $223,000, which is half of what they’re currently worth, to become affordable enough to sustain an 80 per cent mortgage. The report’s other solution is for standard full-time earnings to jump to $93,400 per year — double today’s average.

With millennials representing about seven per cent of the population, Kershaw says the soaring real estate prices helped baby boomers but now massive changes need to be made to support the next generation of Canadians.

“We recognize ‘now that my kid wants to move out, this really harms them,'” he said. “It’s an intergenerational moment that is changing class norms.”



The Canada Mortgage and Housing Corporation says the sky-high prices are also due to investor demand and income growth but it all boils down to one issue — Canada doesn’t have enough homes.

“We don’t have the rental market or supply out there for folks to live in,” Dana Senagama, a senior specialist and market analyst at CMHS told the Financial Post. “If you’re a first-time buyer you’re competing with investors that are going to buy the condo unit.”

It's an intergenerational moment that is changing class norms Paul Kershaw, Ph.D, founder of Generation Squeeze

Kershaw says the report was published now in hopes of having candidates for the fall Federal election take the housing crisis seriously. He and his team list a number of recommendations including reducing other millennial expenses such as tuition, childcare and transit, helping renters make more money and a national housing strategy it says is long overdue with a focus on homes as a place to live rather than a “stock market.”

As for what millennials can do, Skenderis says their choices are simple.

“Millennials need to be realistic about what they can afford and should try to save as much money before going in and purchasing a home,” he said. “They should shoot for a 30 to 40 per cent down payment because it will save them money when paying off the home. If that means living at home for longer period of time with folks, they may have to suck it up.”

• Email: bhristova@postmedia.com | Twitter: bobbyhristova