LETTER – The curious case of the affluent poor

I am sorry to have to say this Canada has for sometime been quietly creating a new class: the affluent poor, people with good incomes who still can’t afford a home without stretching to the brink.

This isn’t accidental. It’s how the system is built.

Builders, facing high land and regulatory costs, favour expensive homes because the margins are better. One luxury house often beats two modest ones. Banks benefit too with larger mortgages meaning more interest over time. And municipal governments? Higher property values generate higher taxes, fees, and development charges.

Each player is acting rationally. But together, they produce a housing market tilted toward the high end, leaving fewer attainable options for everyone else.

The result is a squeeze on the middle class. Nurses, teachers, and small business owners (once the backbone of homeownership) are increasingly priced out or buried in debt. On paper, they’re doing well. In reality, they’re barely keeping up.

If we want affordable housing, we need to realign incentives: faster approvals, lower fees for modest homes, and zoning that supports townhomes, duplexes, and suites.

Until then, the system will keep delivering what it rewards, expensive housing and the ranks of the affluent poor will keep growing.

GARRY DAVIES