Mr. Speaker, there is no doubt about it. All people across this country, from coast to coast, should have the opportunity to have a roof over their heads, food on the table and a warm and comfortable place to call home. People should feel secure in that place and should be proud to live in that place.
The motion before the House has an excellent intent. It highlights the need that exists in our country. We know that there are vulnerable populations that currently do not have access to housing. We know that there are others who live in housing that is perhaps not to the standard it should be, so the intent of the motion is certainly very good. I would highlight that first and foremost.
There is some excellent work being done by organizations across this country to help those individuals who do not have access to housing. I wish to take a moment to commend them for the incredible work they are doing, whether that is churches or not-for-profit organizations or individuals in our local ridings across this country, because they are doing some phenomenal work with those who need their help.
That said, there is a larger question being asked here, and that is with regard to overall affordability and access to housing. We know that the majority of Canadians wish to own a home. Rent is okay, but home ownership is the ultimate dream for most individuals. We know that with it comes a sense of pride, a sense of accomplishment and a sense of autonomy. It is an honour to own a piece of property, a home or a shelter, a place to build a life.
In my parents' generation, it was common that a couple could purchase a home at approximately age 20 to 25 and perhaps then have children and outgrow that home. They would then be able to purchase a new home after the sale of the smaller one and would continue working their way through the housing market.
Unfortunately, this is not the way things are today. Instead, people in the millennial generation still have the dream of owning a home. They want that sense of pride, that sense of autonomy and that sense of accomplishment. They want that place of security to establish a life for themselves. Sixty-four per cent of young people recently surveyed by Abacus Data said that the federal government should place emphasis on housing affordability. They said that it is a dream of theirs to own a home. That said, it should be highlighted that they face a very different scenario than my parents' generation faced.
For those between the ages of 25 and 34 looking to purchase a home in 2017, the average price of a home was $510,000. The average salary of an individual in 2017 was just under $50,000. This equates to a ratio of 10:1. The cost of a house was 10 times annual income. In 1976, the scenario was very different. The average price of a home was about $213,000 in this country, and the average salary was about $54,000, so it was a ratio of about 4:1. We can see that in the 1970s, we were dealing with a ratio of 4:1, and as of 2017, we are dealing with a ratio of 10:1, which makes it incredibly difficult for young people to save up and afford a home and realize their dream. As a response to this, then, young people are actually giving up on this dream. There was a recent survey done that highlighted that more than half of Canadians who once dreamed of home ownership have actually put that dream aside.
Interestingly, this just happened in 2017. Why did it happen in 2017? I would like to take this opportunity to explain why that was such a significant year. It was a year after the current government put some very significant changes in place with regard to the mortgage rules. The Liberals are making it very difficult to save for a home to begin with, because a first step is being able to put a little money aside each month after working long hours.
However, people are having a hard time doing this because they cannot even afford to pay their basic bills. Forty-eight per cent of Canadians are within $200 a month of not being able to pay for their basic necessities, including food on the table, fuel in their vehicles and a roof over their head, let alone being able to put aside money toward a mortgage. It is here that we have to start: just the basic place of being able to save toward that dream.
The second place we need to look is at the stress test that was implemented by the current government. It is a mortgage change and it makes it incredibly difficult for a young person or anyone who is looking for a first home to purchase. In fact, 20% fewer people are being approved now than before the stress test was implemented.
The rules that have been put in place are now unfairly hindering people from purchasing homes and they are depressing the market at the same time. This means that for those who already own a home, the value of those homes is depreciating, which is discouraging for them because many are looking to their homes to provide for their retirement.
Fewer people being able to qualify for mortgages means many of them are putting the dream aside. However, for some who are fortunate enough to have parents who might be willing to sign off on the mortgage with them, it means this is happening more and more. These parents are signing on the dotted line. For parents who sign their children's mortgages, it impacts their personal financial well-being, security and ability to retire. We can see the detrimental impact of just the stress test.
Individuals who purchase a home not only have to save for the home and then qualify for the home with the application and the stress test, but then they have the ongoing payments to keep that home. To be able to make these payments, life needs to be affordable in general. It is not just the house but there is the fuel in their vehicles, the home heating costs and the food on their tables. All of these things are part of the cost of living.
Growing interest rates make mortgages more difficult to pay, which is a challenge for many Canadians and will continue to be so. Also, there is the simple math of the margin, a person's income versus what a person needs to spend to be able to live. We know that margin is getting slimmer. We are seeing that. We are watching as the current federal government is making life less affordable for everyday Canadians. We are watching as the Liberals are putting policies in place that are punishing Canadians rather than rewarding them for their hard work.
One of the big things that has come up in the House recently is a government document that shows the carbon tax and what it would do to Canadians. The Liberals have said that they are going to implement a carbon tax. That is going to come into effect right away. They have tried to assure Canadians that it is not going to be a big deal. They even like to use the line that Canadians will get more back than they pay. I would love to know how that works, but I do not think I ever will because the Liberals are not able to give a straight answer.
Here is what we do know, because here is what the government documents show. Following the election, which is interesting, the carbon tax will increase by about 15 times and will cost a family of four about $5,000 a year. That is a ton of money. It might not be a lot of money for the Prime Minister, who has a trust account, a family fortune to rely on, but for all other Canadians across the country who are dreaming of home ownership and stability and who are working hard to realize their dreams, their future and their desires, $5,000 a year is a lot of money.
If we want to talk about housing affordability, let us talk about the grand picture that is taking place here, and that is Canada's overall economic well-being: the ability to bring investment into our country; the ability to create jobs; the ability to sustain ourselves as a nation economically on the world stage; and, more important, the ability for everyday hard-working Canadians to make ends meet. This is the grand picture at stake here and it all needs to be considered when we talk about the affordability of housing.