The affordability gap is being closed by the bank of mom and dad. This drives home prices further from a sustainable equilibrium.
From the Toronto Star:
Some 42 per cent of first-time and move-up buyers expect their parents or relatives to help pay for their home, according to the annual survey, released Thursday. That’s up about 12 percentage points from last year’s Home Buying Report.
Those expectations range from an average of $37,500 for first-time buyers to a stunning $94,780 from so-called “upsizers” graduating to a bigger place, according to an online survey of more than 2,000 Canadians over the age of 18 done for BMO between February 24 and March 5.