More Ontario residents turning to non-traditional housing options in overpriced market
Buying property with friends and family has become a trend in the Toronto market in recent years due to how unattainable housing here is otherwise, and it is now just one of a number of types of non-traditional home ownership that are growing in popularity nationwide.
New data from Re/Max provides some insight into just how many people in major Canadian cities are now resorting to things like going in on a house with loved ones, renting to own, or buying property for its rental potential, given the state of today’s economy.
People are now co-purchasing homes to afford Toronto’s overblown housing market https://t.co/VuuDzJBR57 #Toronto #TorontoHousingMarket
— blogTO (@blogTO) October 12, 2023
Per a survey Leger conducted for the real estate brand this month, a third of Canadians (32%) say that the cost of living crisis, jump in interest rates and ever-higher housing prices in markets across the country have pushed them to look at alternative options for fulfilling their dream of having a place of their own.
Even more, a whopping 48% — nearly half — of respondents said they would consider these non-traditional ways of owning in the future.
In Ontario specifically, homes with secondary suites to rent out for income or to accommodate multiple generations of a family under one roof are particularly in demand, especially in cities like Mississauga, Brampton and London.
Brokers in parts of the GTA estimate that multigenerational or group ownership has spiked in some cities — such as Hamilton, Burlington and Oakville — by around 300% in the last five years, and will only continue to surge across the region.
“Brokers reported the number of Canadians entering non-traditional homebuyer situations in markets like London and Toronto is anticipated to increase between 8 to 10%, and in Mississauga and Brampton, it could be as high as 35% with a 5% year-over-year increase moving forward,” the report reads.
“This is especially prevalent among families, with co-ownership or shared equity among parents or even grandparents. Likewise, these regions are seeing an uptick in reverse mortgages, especially among older residents to either get the property they want or use the funds in another investment.”
While these older demographics may be more involved in the purchases of younger family members in this way, it is the younger people who more often have to turn to these alternative models out of necessity.
The survey revealed that Canadians who have already purchased a residence in one of the aforementioned non-traditional ways were more likely to be young people aged 18 to 34 and/or residents of colour.
And yet – nothing is being done. No short term plans at all. Just increasing immigration, which leads to shortages, and more inflated housing.
— Blindwillie (@Blindwillie4) February 14, 2024
Along with all of this information, Re/Max’s experts were not shy in making suggestions to all levels of government to mitigate the housing affordability crisis, writing that this “creativity in the home-buying process is a workaround, not a solution.”
“Like modern, innovative homebuyers, our governments must be more strategic and visionary in how we can use existing lands and real estate to drive our housing supply to allow for a greater diversity of housing for all Canadians.”
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