Though we tend to focus strictly on trends in GTA real estate, sometimes we come across data on a Canadian-wide level that is worth sharing. According to the most recent census data published by Statistics Canada, the proportion of Canadians who own their homes has experienced a modest decrease from a decade ago.
In 2006, approximately 68.4 percent of Canadian households were occupied by the property owner. In 2011, that number crept up to 69 percent of households and most recently, in 2016, that fell to 67.8 percent of Canadian households that were occupied by their owner.
All in all, this is a high rate of home ownership in Canada and can be shown to be relatively stable as well. Analyzing home ownership rates back to 1991 when it was only 62.6 percent of households, much of the rise in home ownership since then relates to baby boomers who have paid off their properties. Additionally, these seniors are more likely to own their homes than they were a decade ago and are more likely to remain living in their home.
Baby Boomers and Millennials on Home Ownership Rates
As well established as baby boomers are today in their homes, millennials are proving to be working with a different set of circumstances when it comes to home ownership. For example, millennials are less likely, at thirty years of age, to own their homes than baby boomers were. The drive towards home ownership, some suspect, may not be as strong with millennials as it once was with baby boomers.
The Future of Home Ownership and the Decade Ahead
There is no telling what will happen to home ownership rates in the coming two decades but it may mark a very interesting period in Canadian real estate. Many older property owners have already hit or are hitting their retirement age. How long they intend to hold onto their homes is a question many experts are asking. Additionally, Canadians are more likely to live in cities like Toronto today than they used to be, areas where home ownership rates are significantly lower are.
The Condo Boom in Property Development
Condo developments represented less than 6 percent of constructions prior to 1980. This percentage has risen steadily to 14 percent in 1990, 18 percent in 2000, 24 percent in 2010, and 33 percent in 2016. Just going off these numbers, the momentum behind condo construction continues to turn as more Canadians than ever before are flocking to condo living, particularly in places like Toronto.
More than two thirds of Canadian condo dwellers own their unit outright. This is down from the 71 percent condo ownership rate from 2011, signifying that there are more people renting condos today than there were a half-decade ago. These are where millennials seem to be flocking to, despite the median age of condo dwellers being above 45.
Home Ownership and Condo Ownership; ongoing Trends
Toronto’s mindset is focused on the development and re-development of more housing units, more and more of which are low-rise and high-rise condo buildings. Though home ownership remains steady today, decades from now, urban areas may be reserved strictly for condo towers whereby home ownership is found predominantly in less populated areas. As the market and its consumers adapt, the years to come are likely to be marked by home ownesrhip becoming increasingly a thing of the past.