Here’s why — and how to fix the problem

This is a summary of featured article by Hanif Bayat, PhD, founder and CEO of WOWA.ca

Toronto Start Dec. 6, 2025

There’s a common belief that salaries in Canada have steadily risen over time.While this is partly true, it doesn’t tell the full story.

1. Monetary expansion has been eroding money’s real value for decades, especially since the end of the gold standard.

2. Economic policy disproportionately protects older generations while younger ones bear the brunt of inflation, inequality, and AI-driven disruption.

The chart below shows Canadian median disposable income from 1990 to 2023 trended upward, however when adjusted for rising inflation - Consumer Price Index (CPI) - purchasing power has been eroding the value of earnings; so much so, that incomes have only risen marginally on a nominal basis.

But, when that slight income growth is evaluated in terms of asset affordability (housing, stocks, gold), the picture reverses: the asset-buying power of Canadian incomes has fallen significantly.The real purchasing power of that income in 2023 was lower than it was in 2000 across all major asset classes.

This widening gap between wages and asset prices helps explain why younger generations—especially Gen Z—feel economically stuck. They face rising asset inflation, stagnant wealth-building potential, long job searches, automation pressures, and labour protections that favour older workers. As a result, hard work no longer translates into the same prospects their parents enjoyed.

Yet the situation isn’t hopeless. It simply demands a different strategy.

Mel’s Take On This New Reality: You Can’t Save Your Way to Wealth —You Must Own Assets.Assets—especially those that benefit from inflation rather than suffer from it—are essential to long-term security.

Many Canadians feel like they are doing everything right—working hard, saving money, and planning for the future—yet they still can’t seem to get ahead.The traditional “work, save, buy a home” plan doesn’t work anymore, so you need a different approach.Canadians need to shift away from saving their way to wealth to owning assets that grow over time. Commercial real estate is one of the most effective ways to do that.

Commercial real estate works differently from regular housing. Homes are mostly priced by emotion and lifestyle. Commercial buildings, on the other hand, are valued based on the income they produce. If you can manage a building well, improve it, or attract better tenants, you can directly increase its value.

Another strength of commercial real estate is its ability to keep up with inflation. When prices rise, businesses adjust their own prices, and commercial rents tend to move with them. This helps protect investors from the slow erosion of purchasing power that affects traditional savings and wage income.

The best part is that young investors don’t need to start with huge amounts of cash. Many begin through real estate investment trusts, fractional ownership platforms, or partnerships where they contribute skills instead of large upfront capital. Over time, these smaller steps can lead to bigger opportunities.

Commercial real estate also builds wealth in several ways at once. Tenants help pay down the loan. Properties rise in value over time. Rental income can increase over the years. Improvements you make can boost both the income and the property’s worth. These benefits compound over time, making commercial real estate a powerful long-term strategy.

While the old financial playbook may not fit today’s world, an investment strategy that evolves around Commercial real estate can grow dividends for decades, creating stability even in an unpredictable economy. Wages will always rise and fall with the job market, but well-chosen real estate can continue to grow through inflation, population shifts, and long-term economic trends.

Commercial real estate isn’t about getting rich overnight. It’s about building a stronger, more resilient financial foundation. In a world where saving alone is no longer enough, owning assets that grow—and that you can improve—offers a clearer path toward stability, freedom, and long-term success.

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Mel