The Housing Gap: Why 2025 is Harder than 1982 (Toronto & Vancouver)

Saw this post someone shared on reddit where they analyzed home prices vs income and compared it through 1982 to 2000 t0 2025 where i find it interesting and want to share it here. The bottom figures are toronto but Vancouver and Toronto have comparable real estate markets, with similar pricing pressures, demand patterns, and supply constraints. Figures should be quite similar

Many look back at the early 1980s as the "dark ages" of real estate because interest rates hit a staggering 19.25%. However, when we look at the math, the burden on today’s households is significantly heavier. Here is the breakdown of why housing costs are now 62% higher relative to income than they were during the historic rate peak of 1982.

• The Golden Era (2000): This was the "sweet spot" for affordability. Despite interest rates being nearly double what they are today, a median household only spent about a quarter of their income on their mortgage.

  
  

• The Interest Rate Paradox: In 1982, interest rates were a massive 19.25%, yet housing was still more affordable than today because the principal price was only ~3.5x the median income.

  
  

• The 2025 Reality: Today, the average house price is roughly 15x the median income. Even with lower interest rates, the sheer size of the debt makes the monthly carry almost impossible for the average earner.

In 1982, you were fighting the bank; in 2025, you are fighting the price tag!