Skyrocketing home prices in Waterloo Region drive residents to make difficult decisions

With its thriving tech industry and renowned universities, Waterloo Region has long been an attractive destination for people looking to settle down. However, in recent years, the dream of homeownership has become increasingly elusive for many.

"Right now, even [the] Kitchener, Waterloo, Cambridge areas are so unaffordable," said Cambridge resident Vidya Sundar.

The housing affordability crisis is now pushing long-time residents to the brink.

"They have no option but to sell it right at a loss so I think that's going to eventually happen for a lot of houses," Sundar said.

According to the Waterloo Region Association of Realtors (WRAR), the average price for all residential properties in the region during September was $757,753, representing a 0.7 per cent increase compared to September 2022.

September average sales price by property type. (Submitted: WRAR)

While there was a surge of new listings in September, WRAR says there was a low number of sales. 527 homes were sold last month out of a total of 1,400.

It is a number that doesn’t surprise Sundar, who says many people in his neighbourhood are looking to buy elsewhere beyond the region.

"For people who are looking to buy right now, I think it's going to be a challenging task but it really depends on the government to make it as transparent as possible to make sure what are going to be the homeownership costs," Sundar said.

WRAR recently released a report highlighting the number of locals struggling to pay for housing. Four in ten reported that they live in housing that is unaffordable. The report also showed 27.7 per cent of residents are considering moving out of the region to a more affordable location.

Residents considering moving to a more affordable location outside of Waterloo Region. (Submitted: WRAR)

"I think people are looking to move outside of KWC areas, trying to see if they can reduce costs simply because the prices are outrageous," Sundar said.

While efforts are being made to combat the affordability crisis such as rent supplement programs, Waterloo Region housing and incentives for affordable housing developments, many residents are still faced with tough choices.

"People team up together to stay in rooms,” said Sunday. “There are like two or three folks in a room so that's the only way to beat the affordability issue."

With the next scheduled Bank of Canada interest rate announcement set for Oct. 25, WRAR expects buyers to be on the sidelines, waiting to see what unfolds.