RBC unveils latest rentership numbers
The number of Canadians renting has increased at almost three times the rate of homeowners over the past decade, according to a new analysis by Royal Bank of Canada.
This is despite an estimated two-thirds of Canadian households owning their homes in 2021. Per the 2021 Census, the number of renting households went up from 4.1 million in 2011 to nearly five million last year.
During this period, the number of renters grew by 876,000 households (or 22%), versus an increase of 770,000 (8%) in owner households, RBC said.
The report added that while the bulk of renters in Canada are comprised of younger generations and those who are living in urban areas, “growth in rentership is now strongest among baby boomers and in smaller cities.”
“More Canadians are [also] choosing to live alone,” RBC said. “Since two incomes are often necessary to cover the high costs of ownership, many of these individuals end up renting.”
Combined pressures
These trends are only likely to strengthen moving forward, considering the combined pressures of affordability, demographic growth, and shifting socio-cultural preferences.
“Of the one million recent immigrants (a landed immigrant or permanent resident for five years or less) living in private dwellings, 56% (640,700) were living in rented accommodation in 2018,” RBC said. “That’s nearly two-times the national average, leaving immigrants to represent a disproportionately high share of rental households in Canada.”
RBC said that the rapid growth in renters is not likely to slow down any time soon.
“Concerted efforts among policymakers, developers and builders are required to ensure, expand and diversify Canada’s stock of suitable, affordable, and stable rental housing,” RBC said.
