Economist says 'no investment vehicle' equal to home ownership

As the cost of homeownership in Canada soars, one economist says many unable to afford a home may miss out on a primary driver of wealth accumulation.

On Thursday, Carrie Freestone, an economist at RBC, said in a report that renters are facing barriers to accumulating wealth as they spend more and more of their income on shelter. Freestone said in an interview with BNN Bloomberg on Friday that renters “are squeezed” and spending more than they earn. She said the trend is cause for concern. 

“I will say that if we look at wealth accumulation, homeownership has been the primary driver of wealth accumulation in Canada,” Freestone said. 

“It's accounted for half of the assets accumulated over the past three decades. So it is concerning that renters are not having access to the housing market.”