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
India's foreign minister reacts to murder charges, claims Canada welcomes criminals
India's Foreign Affairs Minister accused Canada of welcoming criminals from his country in response to the RCMP's recent arrests in a homicide that has roiled tensions between the two countries.
15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Actor Bernard Hill, of 'Titanic' and 'Lord of the Rings,' has died at 79
Actor Bernard Hill, who delivered a rousing cry before leading his people into battle in 'The Lord of the Rings: The Return of the King' and went down with the ship as the captain in 'Titanic,' has died.
'A tiny city:' Pro-Palestinian campus protesters organize for another week
Pro-Palestinian activists have set up tents at universities in Toronto, Ottawa, Vancouver and Montreal, following a wave of similar protests at campuses in the United States linked to the Israel-Hamas war.
Lawsuit against Meta asks if Facebook users have right to control their feeds using external tools
Do social media users have the right to control what they see — or don't see — on their feeds?
A Holocaust survivor will mark that history differently after the horrors of Oct. 7
This year's Holocaust Remembrance Day, which begins on Sunday evening in Israel, carries a heavier weight than usual for many Jews around the world.
Princess Anne lays wreath at Battle of Atlantic ceremony; honours late Queen
Princess Anne saluted Canadian veterans and current forces members and honoured her late mother during separate ceremonies Sunday in Victoria as she wrapped up a three-day British Columbia West Coast royal visit.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.