Canadian home ownership rates on the rise

Many Canadian households have moved from renting to home ownership during the past two decades, according to new report from Statistics Canada. Almost 70 per cent of Canadians were home owners in 2005, a significant increase compared to about 60 per cent in 1986.

The report says low interest rates, attractive financing options and strong economic conditions have encouraged Canadians to buy, even though home prices are increasing at a much faster pace than rentals. The Canadian Real Estate Association notes that the national Home Buyers’ Plan, which was launched in 1992, has also helped thousands of first-time home buyers access home ownership over the past 15 years.

The biggest shifts toward home ownership were in Alberta, Manitoba and Saskatchewan, where housing markets have soared to unprecedented heights in recent years. The only provinces where home ownership didn’t increase were Newfoundland and Labrador, and PEI.

The Statscan study found that households that turned from renting to owning tended to have higher incomes. As a result, Canada's pool of renters is comprised of more by low-income households than it used to be. The fastest-growing segment of the residential rental market has been households in the bottom 20 per cent of the income distribution, or the lowest income quintile.
The study also showed that elderly people are playing a larger role in the rental market than they did two decades ago. Younger households, married couples with children and lone-parent households are playing a lesser role.

As the population ages, older households will likely represent an even higher proportion of renters. If so, landlords might be expected to provide better accommodation for aging renters, such as special facilities or equipment.
The study also found that, due to an aging stock of apartments, residential landlords devoted 14 per cent of their operating expenses to repair and maintenance costs in 2004. (CREA 30/05/07)