More Canadians than ever can't afford to buy a home. But is owning always better than renting?
CBC
Brandon Hepworth and his partner have come to terms with never owning a home.
"It's definitely not within our means," he said.
Hepworth and Lorie Ganley, both 28, live in a one-bedroom apartment in Montreal and are paying $1,200 a month in rent. Although buying was once something they discussed, rapidly rising housing prices have made home ownership unrealistic for them.
"We would love to have a place, but it's not something that we're actively working on," said Hepworth.
The couple recently went back to school and are working part-time. Hepworth is studying electrical engineering while working an administrative job at a hospital. Ganley is completing her master's degree in theatre and working at a local theatre.
Their next financial goal? A car, or a vacation, said Hepworth.
With housing prices rising at a significantly faster pace than wages, home ownership has become increasingly unaffordable for Canadians.
February housing data from the Canadian Real Estate Association shows the average home price in Canada jumped 20 per cent over the last year.
According to a report by Mustel Group and Sotheby's International Realty, over 80 per cent of respondents ages 18 to 28 living in urban centres said they're worried they won't be able to purchase a home in the community of their choice due to rising home prices and half have completely given up on the dream of owning a single-family home. The survey of 1,502 respondents was conducted in in fall 2021.
For Hepworth, owning a home would provide reassurance that his space was truly his. However, the couple is well aware of the hefty cost associated with owning. Hepworth said Ganley's parents almost went bankrupt because of maintenance costs relating to their roof.
"I'm not going to go bankrupt because the place that I rent the roof leaks," he said.
In Toronto, Javan Wang and his partner, Khrystyna Skira, 26, don't see themselves buying a home in the foreseeable future.
The couple is renting a two-bedroom condo in North York for around $2,500 a month. Wang, a product designer, and Skira, who works in IT, said if they were to buy, they could only afford a space half the size of the one they're living in and they'd probably need to move further away.
That's in contrast to their situation right now: they live along the subway line, near shops and restaurants, and are in a rent-controlled building.
