Statistics Canada conducted a Canadian Housing Survey in 2021 and recently even revealed the report concerning the situation of housing in the country.
The latest report gives details about the several modifications and trends that have existed between 2011 and 2021 concerning the housing market. There have been major alterations, including home and rental ownerships, housing budgets, value, and the type of dwelling.
The housing market underwent a transformation in the last decade due to a variety of reasons. This latest report emphasizes not just the reasons for this shift but also the changed behavior of consumers with their changing preferences.
The Canadian Housing Survey includes a few chief perceptions:
General perceptions
- The home expenses increased because of the alterations in the demand and supply of housing, along with new expectations for the future.
- The housing expenses kept on increasing throughout 2022 because of the higher interest rates that emerged to control inflation.
- 39.9 percent of the downtown households were observed living in condominiums, while 50.1 percent of these downtowns were given on rent in 2021.
The Core Housing requirement declines
The requirement for Core Housing implies living in an inconvenient and inappropriate place and the lack of ability to find a suitable and budget-friendly dwelling in the community.
Since there have been considerable improvements in personal income and housing affordability, the percentage of individuals has drastically declined from 12.7 percent to 10.1 percent between 2016 and 2021.
This percentage included 8.8 percent of children out of the 1.5 million Canadians in 2021. Initially, in 2016, the percentage of children requiring Core Housing was more. However, the percentage of children requiring Core Housing has declined to 4.5 percent in the last five years compared to 13.3 percent in 2016.
Those living with roommates were least expected to live in Core Housing requirements compared to those living individually, with percentages of 7.4 and 15.3 percent, respectively.
Increased incomes lead to a new understanding of housing affordability
One of the major reasons why Canadians are experiencing reduced requirements for Core Housing is because of their increased personal incomes. Consequently, the price of unaffordable housing declined by over 3 percent.
As per the recorded data in 2016, 24.1 percent of Canadians consumed 30 percent of their income on shelter costs. However, this percentage changed to 20 percent in 2021.
Additionally, the temporary situation due to the pandemic also caused more affordable housing. People, including renters and house owners, experienced the impact on their incomes because of the crisis.
A survey was conducted on 33 downtown areas within the urban city. As expected, 24 renters out of those dwellings resulted in experiencing above-average expensive housing. However, the general rate of expensive housing declined to 33 percent in 2021 compared to 40.0 percent in 2016.
New rental places are increasing
Statistics Canada reported that houses built between 2016 and 2021 comprised 40.4 percent of them being rented. This percentage contributes to the second-highest rental rate in Canada.
36.6 percent of the Millennial renters and owners occupied most of the dwellings that existed between 2016 and 2021. This percentage contributed to the largest generation, which also contributed to 30.2 percent of Condominium owners.
Rental living witnesses above twice the increase in home living
With the existing increase in renting within Canada, household ownership reduced to 3.5 percent from 69 percent to 66.5 percent in 2011 and 2021, respectively. On the other hand, a visible reduction is prevalent in Canadian households that are subject to home ownership. This situation coincides with the increased rental households of over 21.5 percent, which is likely to triple the prevailing growth pattern with over 8.4 percent of owner households.
All this has occurred due to the changing preferences of the younger generation. Also, it is evident that young individuals are less likely to own houses in 2021. Adults in Canada who are younger than 75 years of age displayed their lack of desire to own a home in 2021. In 2011, young adults between the age of 25 and 29 years expressed an interest in ownership of homes. The percentage of such young adults accounts for 44.1 percent. However, the latest report suggests that presently only 36.5 percent of these adults express the same wish for house ownership.
