Dear Brentwoodians,
As you might expect, our Development and Transportation Committee Chair, Melanie Swailes has a lot to say this month, as she has ably represented our community at the council hearings on the blanket rezoning proposal. She reports on this elsewhere in this issue.
I would like to add a bit of perspective on the issue of unaffordable housing with some statistics:
From 1980 to 2024, the Consumer Price Index which measures inflation increased 3.6 percent – meaning a “typical basket of goods” that cost $100 in 1980 now costs $360.
In the same period, the average house price in Canada increased 10.4 percent – from $70,000 in 1980 to $730,000 today. This is almost triple the rate of inflation.
In 1980, the average annual income in Canada was about $24,000. Today it is about $63,000, an increase well below the rate of inflation, which represents in real terms a pay cut of almost 30%.
The average annual compensation package for the CEOs of the 141 largest companies in Canada in 1980 was around $200,000, while the average compensation of the 100 highest-paid Canadian CEOs today is a staggering $14,900,000. These two figures count slightly different things, but the huge increase nevertheless stands out and represents the widening gap between the middle class and the very wealthy in our country.
To summarize, over the last 44 years:
• Average income – 2.6 percent increase
• Consumer Price Index – 3.6 percent increase
• Average house price – 10.4 percent increase
• Top CEO compensation – around 74.9 percent increase
There is an important discussion that has yet to happen about the impact of this upwards redistribution of wealth on the availability of housing. Disposable money always seeks out high rates of return and aided by mechanisms such as tax-free REITs (Real Estate Investment Trusts), homes have been transformed into investment vehicles and commodities rather than places for people to live.
Sources
• StatsCan; Canadian Real Estate Assn.; International Journal of Business and Management.
Community Cleanup
Brentwood resident, Christina Baer sent in our cover photo, showing three families getting together to do a neighbourhood cleanup. It is a great reminder of the community spirit that exists in Brentwood, and an opportunity to mention the Community Cleanup day happening on June 22 this year, when you can bring oversized items and metal, plastic, etc. for recycling – see the poster in this issue!
Click here to the Brentwood Community News home page for the latest Brentwood community updates.
