Home ownership is out of reach for most Gen Zs, but there’s a better way to build wealth
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- Kristy Shen and her husband became millionaires by their 30s by renting and investing in the stock market instead of buying a home.
- Toronto Real Estate Board reported average detached home prices rose from $253,658 in 2001 to $1,067,861 in 2025, a 321% increase (6.2% per year).
- TSX returned 312% over 2001‑2025, averaging 6.1% per year, roughly matching the Toronto housing price gain.
- U.S. stock market delivered an 825% total return (9.7% per year) in the same period, outpacing both Canadian equities and real estate.
- Diversified global portfolio (equal weight of TSX, U.S. market, and EAFE) posted a 501% return (7.8% per year) from 2001‑2025, beating Toronto home price growth.
Why it matters: Young Canadians gain a realistic wealth‑building path without crushing debt, while the housing market loses potential first‑time buyers, potentially slowing price inflation and easing affordability pressure.
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