“Breaking into the housing market has never been easy, especially in larger Canadian cities where the cost of living and the price of housing continue to rise. A recent report by Re/Max reveals that more than 20 per cent of Canadians are considering non-traditional home-ownership models to achieve their dream of owning a home. From co-ownership with family members to rent-to-own scenarios, Canadians are exploring creative solutions to navigate the challenging housing market landscape.
The Rise of Non-Traditional Homeownership Models
According to the Leger report commissioned by Re/Max, 48 per cent of residents in 22 Canadian cities are open to buying a home using an alternative model. Among these, 22 per cent are considering rent-to-own scenarios, 21 per cent are open to co-ownership with family members other than spouses or partners, and 17 per cent are exploring the possibility of purchasing a home with the intention to rent out a part of it to a tenant. This shift towards non-traditional homeownership models is indicative of the changing dynamics in the Canadian housing market, driven by affordability concerns and high interest rates.
In cities like London, Brampton, and Mississauga, homebuyers are increasingly searching for properties with secondary suites to accommodate intergenerational households. In London, parents are teaming up with their children to create intergenerational family units, while in Mississauga and Brampton, secondary suites are being used to accommodate extended family members or generate rental income. These innovative approaches to homeownership reflect the diverse needs and preferences of Canadians in the face of housing market challenges.
Opportunities and Challenges Ahead
Despite the creative solutions being embraced by Canadian homebuyers, the housing affordability crisis persists. While interest rates may plateau or even decrease in the future, the fundamental issue of lack of inventory and increasing demand remains unresolved. Benjamin Tal, deputy chief economist for CIBC World Markets Inc., highlights the urgency of addressing these challenges to ensure sustainable homeownership opportunities for all Canadians.
Chris Alexander, president of Re/Max Canada, acknowledges the importance of creativity in the home-buying process but stresses that it is not a definitive solution to affordability issues. He calls for strategic and visionary actions by governments to expand housing supply and provide diverse housing options for Canadians. As the housing market landscape continues to evolve, collaborative efforts between industry stakeholders and policymakers will be crucial in addressing the underlying issues affecting housing affordability.
In Conclusion
The growing interest in non-traditional homeownership models reflects the changing landscape of the Canadian housing market. While these creative solutions offer new opportunities for aspiring homeowners, they also underscore the need for comprehensive strategies to address affordability challenges. As Canadians navigate the complexities of the housing market, thoughtful policy interventions and innovative approaches will be key in ensuring equitable access to homeownership for all.”
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