The Debate on Renting Vs. Owning, and Half of Canadian Buyers Say They’ll Use Unorthodox Solutions to Become Homeowners

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

Renters have it worse

There may be some debate as to whether it makes more sense to rent or own in this market, but Statistics Canada has put an end to any debate as to whether it’s better to be a renter or an owner. According to a study the agency dropped last week, owners don’t just enjoy more freedom over their space, they also have a better quality of life. In fact, renters were 15% more likely to report financial issues and 11% less likely to report a high overall life satisfaction. Tenants also felt less connected to their community and lonelier overall.

Christmas Comes Early in Toronto and Brampton  

Year-end bonus season may have come and gone but Ontario municipalities are still receiving gifts from the province that they can take to the bank. Late last week Premiere Doug Ford presented Toronto Mayor Olivia Chow with $114 million for exceeding the city’s 2023 housing target by a whopping 51%, and followed it up this week with a $25.5 million payout to Brampton for meeting 85% of its 2023 goal. The funds are part of a three-year, $1.2 billion provincial incentive strategy that rewards municipalities for achieving at least 80% of the housing targets assigned by the province each year.

Canada’s Ridiculously Expensive Housing Markets is Temporarily Slightly Less So

If you blink now, you could miss a phenomenon in Canada’s major cities rarer than the Northern Lights: improving affordability. According to a new report by Ratehub.ca, the income needed to buy a home in 13 of Canada’s major markets dropped last month, along with prices and mortgage rates. Buyers in Vancouver could pass the “stress test” with $9,620 less income in January than December; with $7,890 less in Victoria, and $7,800 less in Toronto. While the affordability break is badly needed it may be short lived, as strong sales figures and limited supply are expected to send prices soaring.      

Desperate Buyers are Getting Creative   

When the going gets tough, the tough get creative, and in this housing market buyers have had ample opportunity to showcase their imagination. According to a recent study by Re/Max nearly half of Canadian buyers say they’re willing to try unorthodox solutions to achieve their homeownership dream, while 13% of current homeowners say they made their purchase in a non-traditional way. According to the survey, 22% are utilising a rent-to-own program, 21% are co-owning with friends and family (that aren’t a spouse or romantic partner), while 17% are buying homes that include rental properties to help cover their costs.  

Inflation Targets Are Within Reach, Says National Bank  

Canada has been on a long road to tackling inflation, but now analysts say they’re seeing a light at the end of the tunnel. According to a new report from the National Bank of Canada the country is on a “clear path” to reaching the Bank of Canada’s 2% inflation target rate by summer, a full year ahead of the BoC’s forecasts. Wishful thinking, perhaps, but such a drop in inflation so far ahead of schedule would result in a major rate cut this year. In fact, the National Bank believes interest rates could drop by 1.25% before year’s end.   

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