Home ownership essential for a workable retirement plan: Dale Jackson
BNN Bloomberg
It’s no surprise that home ownership plays an outsized role in Canadian retirement savings, but a new report from RBC breaks down how our homes are playing a growing role as a vehicle for overall portfolio growth.
It finds nearly half of the Canadian wealth accumulation has been driven by home ownership over the past three decades. Since 2010, as home equity grew, the average homeowner saw their net worth grow from nine times household disposable income to 13 times.
Over the same period, the net worth for renters grew from three times household disposable income to only 3.5 times.
To further illustrate the growing wealth gap between homeowners and renters, the report shows the portion of income homeowners allocated to housing fell to 21 per cent in 2022 from 23 per cent in 1999.
