With construction costs soaring to $562 per square foot (red arrow) from $204 only 15 years ago, homeownership is more unaffordable than ever.

Even before factoring in profit margins, land acquisition, and DCCs (government imposed fees), a buyer would need a gross annual income of at least $140,710 to afford a modest two-bedroom condominium (see Appendix A). Once those additional costs are included, the required income climbs to over $200,000. For perspective, the average gross household income in Canada is $106,300—a stark gap that highlights the growing affordability crisis.
 

Below is a comparison of the same project and cost breakdown that builders call "pro formas", using construction pricing from fifteen years ago, with the same exclusions and assumptions as above.

Fifteen years ago, construction costs were only $204.19 per square foot – less than half of what they are today. At that time, the gross annual income required to purchase a two-bedroom condominium (excluding profit, land costs, and DCCs) would have been approximately $83,396. With the average Canadian household earning $79,102, homeownership was far more attainable for the average family than it is today."