New report suggests Canadian households are turning to 'creative solutions' to get into housing market
More than 20 per cent of Canadians would consider purchasing a home with a family member in order to break into the housing market, according to a new report by Re/Max.
The Leger report, which was commissioned on behalf of Re/Max, suggests that non-traditional home-ownership models are becoming increasingly more common in larger Canadian cities thanks to “the high cost of living, high interest rates and the price of housing.”
The report, which looked at residents in 22 Canadian cities, found that 48 per cent would consider buying a home using an alternative model. About 22 per cent of those respondents said they would buy under a rent-to-own scenario. About 21 per cent said they would consider co-ownership with a family member that isn’t a spouse or partner, and 17 per cent of respondents said they would consider purchasing a house intending to rent out a part of the home to a tenant.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
“In London, Brampton and Mississauga, homebuyers are increasingly searching for properties with secondary suites to accommodate intergenerational households,” the report read.
In London, the report notes, parents are purchasing homes with their children to operate as an “intergenerational family unit” and assist with child care.
“By contrast, in Mississauga and Brampton, which are experiencing an expanding immigrant population, secondary suites are intended to accommodate extended family members or to generate rental income to support the costs of growing extended families,” the report continued.
The survey indicates that about 13 per cent of respondents who are current homeowners bought a home in a non-traditional way.
According to data from the Toronto Regional Real Estate Board (TRREB), the average selling price of a Toronto home across all property types peaked at $1,334,062 in February 2022 before dropping to a low of $1,037,542 later in the year. With the exception of a surge in activity last spring, prices have remained relatively unchanged in the region.
“With high interest rates plateauing, and potentially lowering in the latter half of 2024, now may be a good time to consider getting into the market, especially for those who have been taking a ‘wait-and-see’ approach,” Benjamin Tal, deputy chief economist for CIBC World Markets Inc., said in a statement accompanying the survey.
“Despite some interest rate reprieve in 2024, Canada is still dealing with an affordability crisis due to lack of inventory and increasing demand, which will persist until the country addresses the problem adequately. Considering this, creative solutions like co-ownership may be an option for many Canadian homebuyers looking to achieve the dream of home ownership.”
Chris Alexander, president of Re/Max Canada, noted that “creativity in the home-buying process” may be a workaround but cannot be considered a “solution” to the country’s affordability crisis.
“Like modern, innovative homebuyers, our governments must be more strategic and visionary in how we can use existing lands and real estate to drive our housing supply to allow for a greater diversity of housing for all Canadians,” Alexander said in a written statement.
The online survey of 1,522 Canadians, which was conducted using Leger’s online panel, was conducted between Jan. 19 and Jan. 20. Online surveys cannot be assigned a margin of error as they do not contain a random sample.
CTVNews.ca Top Stories
LIVE UPDATES Critical infrastructure 'successfully protected': Jasper park officials
Jasper National Park officials in an update said all critical infrastructure in the townsite has been 'successfully protected, including the hospital, emergency services building, both elementary and junior/senior schools, activity centre and wastewater treatment plant.'
Canadian Olympic Committee removes women's soccer team's head coach over drone scandal
The Canadian Olympic Committee has removed women's national soccer team head coach Bev Priestman over a drone scandal, according to a press release from the organization.
Yukon woman narrowly escapes bear attack, credits hair clip
A woman in Yukon believes her hair clip helped save her during a bear attack.
Prince William's 2023 salary revealed in new report
Newly released financial reports show that William, the Prince of Wales, drew a salary of $42.1 million last fiscal year, his first since inheriting the vast and lucrative Duchy of Cornwall.
'I was just shocked': Jasper lodge owner on seeing property destroyed by wildfire
On Wednesday night, the owner of Maligne Lodge in Jasper, Alta., was shocked to receive a photo of her business engulfed in flames.
Mary-Ellen Turpel-Lafond likely has Indigenous DNA: report
The Law Society of British Columbia says a DNA test shows a former judge and Order of Canada recipient accused of falsely claiming to be Cree "most likely" has Indigenous heritage.
U.S. authorities have arrested 'El Mayo' Zambada, a historic leader of Mexico's Sinaloa cartel
Ismael 'El Mayo' Zambada, a historic leader of Mexico's Sinaloa cartel, and Joaquin Guzman Lopez, a son of another infamous cartel leader, were arrested by U.S. authorities in Texas on Thursday, the U.S. Justice Department said.
Harris pushes Netanyahu to ease suffering in Gaza: 'I will not be silent'
U.S. Vice President Kamala Harris pressured Israeli Prime Minister Benjamin Netanyahu on Thursday to help reach a Gaza ceasefire deal that would ease the suffering of Palestinian civilians, striking a tougher tone than President Joe Biden.
'She led it the whole way': 18-year-old B.C. woman leads hikers to safety in Jasper National Park
As fire threatened people in Jasper National Park, Colleen Knull sprung into action.