25.06.2025 | Written By: [[The Writer|Assantewa Heubi]] | Tags: #Housing #1940s #Build-Canada-Strong
### Part 6: What About Inflation?
No one likes inflation; however, we need to talk about it because it impacts everything. This means that obviously inflation will affect the cost of renting or owning a unit built under the [Build Canada Strong](https://liberal.ca/housing-plan/) initiative.
However, the impact of this inflation might be less than typically imagined.
I've taken the liberty of running the cost of both buying and renting a wartime home through the Bank of Canada's inflation calculator.
| Category | 1947 Cost (CAD) | 2025 Equivalent (CAD) | Notes |
| ------------ | ------------------- | ------------------------- | -------------------------------------------------------------------- |
| RENT | | | |
| Low End | $22/month | $367.04/month | Affordable rent |
| High End | $55/month | $917.60/month | Upper rent range |
| Average | ~$32/month | ~$574.59/month | Estimated average |
| OWN | | | |
| Low End | $1,700 | ~$28,353.26 | Smaller homes |
| Average | $4,500 | $75,076.53 | Common sale price |
| High End | $7,000 | $116,785.71 | Larger homes, better lots, or higher-value urban land (e.g., Toronto) |
As you can see, the numbers aren't too bad. In fact, they're actually accessible for many Canadians. Homes priced like this are financially viable to the majority of citizens and are the type of buildings we desperately need.
## Can Regular Canadians Afford Home Ownership?
The average Canadian earning minimum wage takes home about $35,000 a year. This makes homeownership unattainable unless the [Build Canada Strong](https://liberal.ca/housing-plan/) initiative is successful. However, if it's successful, there's still one more thing we need to keep in mind, and that's mortgages.
During the time that the Victory Homes were first implemented, many of them weren't initially available for sale. This was because there was a lack of suitable rental housing available at the time, and that was the first priority that the Wartime Homes Act looked to address for war workers and veterans.
It was soon realized, however, that there needed to be options for home ownership, including a pathway for those who were currently renting Victory Homes. This issue was solved through a practical approach to mortgages.
## What Is a Fair and Reasonable Mortgage?
The solution that was implemented was straightforward and comprised of two parts. Part one was simply allowing people who had previously rented Victory Homes to have first dibs on ownership. Part 2 was the creation of a reasonable and practical mortgage. Specifically, a [25-year mortgage with a down payment of 10%](https://en.wikipedia.org/wiki/History_of_Ajax,_Ontario#:~:text=with%2010%25%20down%20payment%20and%20a%2025%2Dyear%20mortgage).
This practical approach to mortgages helped to ensure that home ownership was truly accessible and manageable. It protected taxpayers from nasty financial surprises and meant that they'd always be able to manage their monthly payment.
## Am I Repeating Myself?
I know that I'm repeating myself, but I am truly of the opinion that for the [Build Canada Strong](https://liberal.ca/housing-plan/) plan to be truly affordable, it needs to meet the definitions of affordability and the pricing offered by the wartime house-building initiative, also known as Victory Homes. The pricing must be the same or better when adjusted for inflation.
This means comprehensively learning from the past, as part of investing in our future. [Build Canada Strong](https://liberal.ca/housing-plan/) shouldn't be a program that cherry-picks slogans and jargon from a bygone era without implementing the actual solutions and best practices that were used. Doing this means that we can not only achieve the success of the past, but we could also potentially do better.
What do I mean by better? Well, we have more [efficient](https://youtu.be/VVaWmEI9O1w?feature=shared&t=447) ways of building these days, along with more options for materials that can be used. There's no reason why we can't leverage modern practices to improve upon the successful wartime housing model. At the very least, the homes built through this initiative should not be more expensive, of lower quality, or significantly worse in any way.
Not everyone will agree with me, but I believe that housing is a right. Seniors have a right to spend their twilight years in dignity. Children have a right to live in a safe environment where they can focus on their education. Adults have the right to form families and plan for the future in the safety of their own home.
Now, if you've read any of my other articles, you probably know that this is the place where I'm going to ask you a question:
> **What would you consider to be meaningfully affordable monthly fee for housing, and why?** [Click here to share your opinion securely and privately.](https://tally.so/r/31YrYL)
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