According to a article by Better Dwelling, Canada’s house price-to-rent ratio, the difference in renting and buying, is one of the highest in the world. It’s obvious to see why this is a real debate throughout Canada. As homes continue to go on a upward climb, renting will only increase in popularity, especially with millennials.
As housing prices continue to rise and more people are trying there best to find more affordable housing, renting has been the best option. This becomes even more evident when you see how much you have to pay for a home in major cities like Vancouver and Toronto.
What Does This Mean For Foreign Investors?
In 2019, it cost Canadians 22.43% more to buy then to rent. People want the ability to get into a home fast these days. Nobody wants to come to Canada and wait around for the perfect home. Foreign investors are coming to rent and buy some of the most beautiful condo developments the city has to offer!
The Trend For Millennials: Renting
As the business insider points out, most millennials are choosing to rent for more reasons then one. The act of renting puts such a ease to the buying process. For most people in my age bracket the idea of not having to stress sounds, perfect!
Who wants to stress about buying, getting a mortgage and paying all those different expenses when you can easily just rent? As we see with new technology and new companies, the theme has now been “Make it easy, people like it easy”. Thus the increase in rent has been something we haven’t seen before.
Why do you want to buy a home anymore? For me, I’m running out of reasons. The gap between renting and buying will continue to increase. As baby boomers move into retirement homes, beach homes, country sides, and others, the housing industry is about to see a massive shake up.
Millennials and future generations will opt into the idea of renting, not just for a short period of time, but forever!
So the question I have for you, the reader, what do you see for the future of the Canadian housing market? And what side of history will you be on?