CHAPTER 2 Owning vs. Renting
Owning your own home might be one of the defining qualities of the “Canadian Dream,” the ideals that include opportunity for prosperity and success and an upward social mobility for the family and children, achieved through hard work. Home ownership is surely ingrained as one of the strongest representations of that vision — 66.5% of Canadians own their own home, and more hope they will or wish they did. Something about home ownership plucks a strong chord with Canadians. Financial security, permanency, status, and pride are values many of us seek. Lifestyle plays a significant role in the decision to own versus rent. Home buying is often driven by household formation, such as marriage and a growing family. Less than 47% of people under 35 own homes, 70% of people over 35 own homes, and more than 74.6% of people 65 or over own homes. The Canadian homeownership rate has fluctuated between 60% and 66% since the 1950s. Most young people begin their independent lives renting an apartment, maximizing lifestyle flexibility, and minimizing the hefty upfront costs of purchasing a home. As they build careers, save money, and start families, many buy a house, recognizing that home ownership, as opposed to rental living, is more appropriate to their growing family needs. At the other end of the age spectrum are homeowners nearing retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and return to renting.
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