debt and high house price cosequences

Generation Squeezed

Steve Saretsky -

BC Economy & Debt Crippling Younger Generations

As if you needed another grim reminder of the miserable BC economy and the tsunami of debt hanging over the younger generation. A new study from the University of British Columbia says B.C. is Canada’s “worst-performing economy” for younger generations.

Full-time earnings for 25- to 34-year-olds in 2014, the last year for which data was available, is down by over $8,400 from the period of 1976 to 1980. Meanwhile, Full-time earnings fell by $9,600 for the typical 35- to 44-year-old, and by $6,700 for the typical 45- to 54-year-old.

Go to school, rack up student debt, get a degree and land a steady job they said. The age old wisdom that’s failing youngsters. Yep, wages are in the gutter, house prices are shooting through the stratosphere, and debt is insurmountable.

house prices and wages
BC house prices rise, wages fall.

According to the report, it now takes 18 years of full time work to save for a 20 percent down payment, that’s up from the so called tough days where it only took 8 years.

But who’s counting. Certainly not our politicians.

“Some people just have to get up and whine every day.” – Rich Coleman BC Housing Minister

If you don’t want more debt “you don’t live in real world.” – Christy Clark

Yep, Christy got that one right. Canadian consumer debt hit $1.72 trillion last quarter. The average Vancouverite now owes $24,487 in debt (not including mortgages), that’s up 4.6% year over year. A new record I might add. Meanwhile, bank profits are up, big time.

And people still question why I’m not cheerleading real estate prices.

As Steve Keen says “expensive houses don’t make a wealthy society, they impoverish it.”

Enjoy you whiny millennials.

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The Saretsky Report. December 2022