For the average Canadian, home ownership is on the decline, we can look at the high ownership cost in the three flagship cities as a direct correlation for this downswing. However, a higher rate of homeowners is now taking on mortgages, as well as a cost of carrying a home continues to show large growth. This is great news for those looking to sell homes on the market, and here at Real Estate Leads, we have the breakdown that matters.
5.6 million and counting
The total number of mortgages in the country grew to a staggering 5.6 million. Census 2016, which was conducted in early and mid-May 2017 showed 5,686,576 residential homeowners were still paying down a mortgage. This represents a 7.66% increase from the last long-form Census which was completed in 2011. However, this number is a little higher than expected, as unlike official numbers, the Census 2016 is self-reporting, and includes private mortgages. This is not normal for most real estate guides and does skew the numbers just a tad.
3% rise in homeowners with a mortgage
Another interesting stat to come out of the Census 2016 is that the rate of homeowners with mortgages got a 3% lift. Compared to 2011, the rate raised by 3.58% up to 60.7% of Canadians homeowners having a mortgage. This is an interesting trend, as although general homeownership is down, the rate of homes with a mortgage is up.
Homeowners costs are up 15.54%
Since 2011, we have seen costs go up substantially, but no more than those associated with homeowner costs. This median has risen over 15% to 15.54%, which is astronomically high. This would mean that the median cost of shelter from homeowners is $1130. Think about it this way, inflation growth over that same time period would only be 8%, this is almost double it. Consider the fact that we have a rapidly ageing population in this country, and the issues of affordability in our largest cities, it might represent a bit of a downturn in the market due to the cost of new homes.
So now what, well for us in the real estate business it is business as normal. Consider that only 1 in 7 people in Canada have a mortgage, and of the Canadian population, under 50% are currently part of the workforce. We have a new generation of home buyers, and although they have yet to start to flood the market, for those in the know, it is coming. Expect to be working with a smarter and better-educated client, and that is not a bad thing. What trends do you think will come out of the next long forum Census, continued decline in home ownership, or will we start to see things even out for the next generation? Leave your comments below!
