However, the market is now feeling the effects of economic volatility and the recent cooldown in price growth
Approximately 60% of Canadians consider their homes as a major component of their investment portfolios, according to a new survey by BNN Bloomberg and RATESDOTCA.
In particular, younger Canadians were found to be more inclined to see their assets this way, with 72% of those in the 18-34 age range viewing their homes as investments, compared to 57% of those age 35 and above.
On the other end of the spectrum, roughly 24% said that their homes are not part of their investments.
However, ongoing economic volatility and the recent cooldown in price growth have led to some Canadians reconsidering the role that their homes play.
Latest figures from the Canadian Real Estate Association (CREA) show that Canadian home prices declined by 13.2% last year, the largest annual drop since monitoring began in 2005.
Approximately 23% said that amid these pressures, the importance that they accord to their homes as investment vehicles has weakened, while 11% said that they no longer consider their homes as good long-term investments.
A majority of Canadians remain sceptical about their prospects of entering into home ownership despite the noticeable decline in home prices over the past year, according to a new Ipsos poll conducted for Global News.https://t.co/Fp8HA7rnBW
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 7, 2023
Many Canadians are choosing not to have their own homes
With affordability continuing to be elusive, a growing number of Canadians are choosing to abandon sole ownership altogether, instead entering into co-ownership set-ups with family members or friends, according to a Royal LePage study earlier this year.
The poll found that 6% of Canadian homeowners currently co-own their property with another party who is not their spouse nor their significant other.
Of this population, 89% said that they are co-owning with family members, while 7% are doing so with friends. Around 56% said that they are living with their parents or in-laws, while 18% are co-owning with their adult children.
“Census data shows that multigenerational households are now the fastest growing household type in Canada,” Royal LePage said. “The decision to live together, including co-owning a home, is a decision increasingly made for financial reasons.”
Royal LePage also found that 76% of Canadian co-owners only entered into such agreements in the first place due to deteriorating housing affordability.
“By dividing the cost of a home between more people, Canadians can not only get their foot on the property ladder more easily, but also expand their home search to more desirable locations or larger properties that may not have been accessible with their budget alone.”
