When it comes to homeowners in Ontario, only 11.4 percent of young adults own their own home.
In a new analysis on homeownership rates in the Canadian real estate market, real estate company RE/MAX discovered that only 319,295 of the 2,799,834 Ontarians aged 18 to 34 own their own house.
This represents a large increase from the 40.1 percent of Ontarians aged 35 to 54 who own a home, and an even greater increase from the 47.9% of those over 55 who own a home.
Despite what these figures suggest, homeownership rates in Canada have continuously risen, reaching a national high of 68.55 percent prior to the pandemic. However, Ontario, notably in the GTA, has one of the biggest numbers of renters, pushing the province’s overall homeownership rate below the national average.
Low inventory levels are driving up house prices across Ontario, making it much more difficult for young aspiring homeowners to enter the market. RE/MAX predicts that the problem will worsen as residential building investments plummet.
“Put simply, the homeownership rate is high at the national level. However, when you dive deeper into provincial numbers, especially in two of the most expensive provinces in the country, the numbers flip. It is costly to rent in municipalities like Toronto and Vancouver, forcing young people to spend more years saving and paying skyrocketing rent rates,” says the report.
“According to the Bank of Montreal (BMO), investment in Canada’s residential construction sector tumbled at an annualized rate of 12.4% in the second quarter of 2021, contributing to the 1.1% year-over-year gross domestic product (GDP) contraction. This is crucial because this segment of the market represents more than 10% of the Canadian economy,” the report reads, adding, “This could lead to a concerning trend in the housing industry since less residential investment could translate to less supply.”