Canadian Renters Increasingly Opt to Buy Homes
The past two decades have seen an increasing number of Canadian renters letting go of their leases to buy homes, according to a Statistics Canada report released late last week.
Low interest rates, coupled with rising household incomes and a strong economy has caused demand for home ownership — and hence property prices — to climb significantly, especially in the last few years.
“Despite some economic slowdowns and a recession, the average family income increased by 11.5 per cent in real after-inflation terms from 1986 to 2004, leaving households with extra wealth for home purchases,” according to Statistics Canada analysts, Louis-Philippe Verenka and Don Little, who authored the report.
Just 3 out of 10 households rented their homes in 2005, down from 4 out of 10 in 1986.
Regionally speaking, every province by Prince Edward Island and Newfoundland has experienced an overall decline in renters. Alberta, Saskatchewan, and Manitoba have see the highest jump in home purchasing.