Canadians seek out creative solutions as housing costs continue to soar
Canadians are now seeking alternative pathways to home ownership due as a result of escalating housing costs, according to a new report from RE/MAX.
The study, which surveyed over 1,000 Canadians across 22 cities, found that nearly half (48%) of respondents would consider non-traditional homebuying models.
Specifically, 22% said they are interested in rent-to-own agreements, while 21% said they would consider co-ownership with non-partner family members.
Additionally, 17% of those surveyed are considering buying properties with the intention to rent out parts of their homes.
The RE/MAX report also highlighted specific regional trends, such as the growing demand for homes with secondary suites in a handful of cities in Ontario.
“In London, parents commonly purchase homes with their children to operate as an intergenerational family unit and assist with childcare and household expenses,” the report noted.
“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.”
Further in the report, RE/MAX shared insights on current homeowner behaviour, noting that 13% of existing homeowners had previously purchased their homes through non-traditional means. It also found that younger homeowners aged 18 to 34 (25%) and BIPoC Canadians (27%) are more likely to have purchased their homes using alternative methods.
Chris Alexander, president of RE/MAX Canada, commented on the findings and said that while inventive purchasing strategies might offer temporary relief, they do not resolve the broader affordability issues plaguing the housing market.
“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,” said Alexander.
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