A new survey published by Royal LePage has revealed that more than 10 percent of Canadians that live in the country’s three biggest cities — Greater Montreal Area (GMA), Greater Toronto Area (GTA) and Greater Vancouver area (GVA) — own more than one property.
According to the survey’s results, 15 percent of GVA homeowners own more than one home, with the GTA coming in at 13 percent and the GMA at 12 percent. Breaking the numbers down even further, two-thirds of homeowners in the GVA and GTA indicated that their second home is tied to a rental income. On the other hand, in the GMA, this number dropped to just 35 percent.
“While some secondary properties are used for recreational purposes, many of these homes are foundational to Canada’s critical supply of rental housing,” said Phil Soper, president and CEO of Royal LePage, in the report.
“Entrepreneurial landlords supply housing to the thirty percent of Canadians who rent, be they new immigrants, students, young people entering the labour force, or those who cannot or choose not to own their home.”
In the GTA, 49 percent of those who own a secondary home use it as a rental property, with 27 percent stating that they don’t collect rental income. That number is slightly higher in the GVA where 51 percent of homeowners who own a second property say they only use it for rental purposes, with 27 percent stating that they don’t earn income from the second home. Finally, only 25 percent of secondary property owners in the GMA said they were using their second home for rental income, with 37 percent indicating they weren’t earning any rental income from their extra property.
Interestingly, secondary property owners in Montreal primarily use the additional home for leisure, while in Toronto and Vancouver, the second homes are mainly used for investment purposes.
The Royal LePage survey was conducted between June 4th-13th and included more than 1,500 Canadian homeowners across the GMA, GTA and GVA.