Home ownership is down in Canada, according to the 2021 census
Millennials were less likely to own a home in 2021 than in 2011, according to the census.
Home ownership is down in Canada, and millennials were less likely to own a home in 2021 than in 2011, according to new census data from Statistics Canada.
According to the last census, 66.5% of Canadians owned a home in 2021, but this rate was down from its historical high of 69.0%, reached ten years earlier.
The decline in homeownership rates between 2011 and 2021 was greatest among young Canadians, with the rate falling from 44.1% to 36.5% among those aged 25 to 29.
Canadians aged 30 to 34 experienced a similar, but slightly smaller decline in homeownership, with their rate falling from 59.2% to 52.3%.
Mike Moffatt, an assistant professor at Western University's Ivey School of Business, felt this illustrated why the overall ownership rate isn't all that helpful in understanding recent trends.< /p>
As people age, they are more likely to own a home, he pointed out. This is why I think it will be important to break down the data by age group.
Meanwhile the rental rate has increased. According to Statistics Canada, the growth in the number of renter households was more than double that of the number of owner households between 2011 and 2021.
Brittany MacKenzie, a real estate agent from Fredericton, New Brunswick, said she's noticed a change in attitude among young people hoping to become homebuyers amid rising prices.
I found that a lot of our younger buyers were hesitant now and left [the market] deciding to rent for a while, she said.
Statistics Canada pointed out that new dwellings were more likely to be occupied by renters, which was the case for 40.4% of new construction between 2016 and 2021.
The federal agency also pointed out that the new data also indicated that monthly housing costs rose faster for renters than for owners during the last census period.< /p>
Median monthly housing costs for renters jumped 17.6% between 2016 and 2021, outpacing inflation. Indeed, the consumer price index increased by 9.5% over the same period. For landlords, median monthly costs increased by 9.7%.
Housing affordability actually improved in 2021, but one in five always spends more than 30% of their income on housing costs.
According to Statistics Canada, the improvement in affordability has been most pronounced for low-income renters and can largely be attributed to temporary income supports related to COVID-19.
Mr. Moffatt argued that these supportive measures do not allow the data to offer an accurate representation of housing affordability.
“It's going to be pretty misleading just because people were getting this kind of one-time revenue boost.
—Mike Moffatt, assistant professor at the Ivey School of Business at Western University
The report also discusses the rising trend in condominium construction , especially in urban centres. Between 2016 and 2021, more than half of the homes built in Toronto, Vancouver and Montreal were condominiums.
Millennials made up the largest proportion of the approximately 4.3 million Canadians who lived in condominiums in 2021. Nearly three in 10 condominium occupants were in this age group.