Less Canadians are interested in home ownership nowadays. Many of them are starting to opt for renting.

A current census says that 30 year old Canadians are less likely to buy a home today than their parents did at their age. This reflects a national decline in home ownership.

55% of baby boomers owned their own homes at the age of 30 whereas today, that percentage sits at 50.2%. Not a huge difference, but an unmistakable one. Today’s young adults are less likely to be living in single detached homes and more likely to be renting apartments or living at home with their parents. This is according Statistics Canada.

After 20 years of relative stability with the ownership rate at 69%, in 2016 this dropped to 67.8%.

Since 2011, the national average of home price jumped from $345K to $443K in 2016. As the prices increase, so do the people who opt to rent.

The census data also showed that renters are more likely to be stretched financially to afford the rent with 40% of renters spending more than 30% of their income on housing. Homeowners are less stretched spending on average only 17% of their income on housing.
The federal Liberal government is expected to address these affordability issues by focusing on building affordable units and a portable housing benefit.

In the coming years, it is expected that more millenials will start looking for homes or condominiums as they start their new families and seniors will begin to sell off and downsize.

Developments need to start focusing on what the end users need and less on the investors.

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online here with absolutely no pressure and no obligation.

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