As family structures evolve in Canada, the need for home ownership has also changed.
Canadians are having fewer children with rates hitting record lows beginning in 2019. In 1959, the average number of births per woman was 3.94, while in 2019 the average number of births per woman declined to 1.47.
Canada’s marriage rate has also declined steadily since the early 1970s. While about 3 out of 4 Canadians between the ages of 25 and 64 live with a partner, marriage rates have decreased and living as common-law has become more common. In 2016, over 21.3% of couples were living as common law – more than three times the share in 1981.
For the first time in the history of the Canadian census, 2016 saw more seniors aged 65+ than children under 15 years.
Canada’s population is aging, getting married less often, and having fewer children.
Changes to Housing Affordability
Home prices have increased significantly since the 1970s when the majority of baby boomers were young adults buying houses. Combined with the fact that earnings have not grown relative to inflation since then and there are high levels of personal debt, home ownership is not as affordable for millennials.
Aside from home ownership being less affordable, many people are choosing to spend their money on experiences like travel rather than on investing in a home, opting to be renters instead.
48% of millennials are homeowners compared to 75% of baby boomers, and 46% of millennials view homeownership as an unattainable dream. Of those that do own homes, 46% of millennials relied on financial help from their parents to boost their down payment, and about ¼ were able to use recent historically low mortgage rates to their advantage in order to purchase homes.
Should You Buy or Rent a Home?
Buying a home is one of the biggest decisions you’ll make in your life, and it’s a personal choice that’s different for everyone. Consider your lifestyle and financial position as well as the future you envision for yourself and how affordable that future might be.
For more information on how to calculate the financial impact of home ownership, visit these related blog posts:
- Renting vs. Buying A Home in Canada | What is the Right Financial Choice for You?
- Programs and Financial Assistance for Home Ownership in Canada
- The Right Time to Buy a House | Can You Afford to Buy a Home in Canada?
We Can Help You Decide
Unsure of how to analyze your financial situation and the impact of home ownership? We are happy to work with our clients to determine the best financial and life decision for you, your family, and your goals.
Connect with us today at www.kwbllp.com!