RSSA Higher Proportion of Homeownership, Mortgages and Condos
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The 2006 Census results with respect to Canadian homeownership show some interesting changes compared with 2001, as recorded in a recent report by Statistics Canada. The following are some of the highlights.
In 2006, there were 12.4 million households in Canada. Average household size was 2.7 individuals.
Out of the 12.4 million households, 8.5 million (68.4% of the total or slightly more than two-thirds) owned their own homes. This was the highest homeownership rate in Canada since 1971.
A corollary to the homeownership rate is that a little less than one-third of households rented their homes (31.2% in 2006 versus 33.8% in 2001). The decline in the proportion of renters means a smaller pool of potential buyers for new homes going forward.
Regionally, the homeownership proportion among households is highest in the Atlantic region, with Newfoundland and Labrador topping the chart at 78.7%. The lowest homeownership rate among households is in the province of Québec at only 60.1%.
Of the 8.5 million households owning their own homes in 2006, nearly 60% of them had mortgages. This was up from 55% in 2001. Most of the increase was due to renters moving into homeownership, but another factor was homeowners taking on new mortgages to finance renovations or other major purchases.
Increasing condominium homeownership has been a big factor in the marketplace. In 1981, less than 4% of owned homes were condominiums. In 2001, this had increased to 9%. By 2006, the figure was just short of 11%.
Among Canada’s cities, the rates of condominium ownership are highest in British Columbia’s four Census Metropolitan Areas (CMAs) − Vancouver (31.0% of owned homes in 2006); Abbotsford (23.8%); Victoria (21.2%); and Kelowna (21.1%).
Homeownership rates are lower than the national average for people who live alone (only 47.8% in 2006). This means that just over half of single people are renters.
Women (48.7%) who live alone have a slightly higher home ownership rate than men (46.7%). Women homeowners living alone are likely to be older (50% are aged 65-plus) and widowed.
One-person households accounted for 26.8% of all households in 2006 (versus 25.7% in 2001). This figure is likely to move further upward in the years ahead, as the baby boomer generation advances in age.
There are significant messages in these statistics for building product manufacturers trying to assess the demographics of their marketplace.
For CanaData’s latest housing starts forecasts, see Market Insights story dated April 22, 2008.
Alex Carrick
Find Canadian construction-related economic articles in Canadian Construction Market News and in the Economic Outlook section of Daily Commercial News.
