Over the past year, Canada’s housing market has exploded across the country. As prices rise in urban centres and smaller suburbs, homeownership trends are beginning to change. Affordable housing has long been a concern in many Canadian cities. Millennials, who are often only aspiring homeowners due to financial constraints, are leading the charge on this hot-button topic as they seek out solutions to help those being left behind by the red-hot housing market, including themselves.
Key Takeaways
Canada is predominantly a nation of homeowners with the majority of Canadians owning their home and only 32% of the population renting. The homeownership rate rose steadily since 1971, going from 60.3% to 68.4% in 2006 and culminating at a high of 69% in 2011. Interestingly enough, the 2016 Statcan census marked the first decrease in share of homeowners in almost half a century, with a 1.2% decline knocking the country’s homeownership rate down to 67.8%.Across the board, data shows that middle-aged Canadians (40 – 59 years of age) are 1.4 times more likely to have a mortgage than older millennials who are 30 – 39 years old. These same middle-ages Canadians are also five times more likely to have a mortgage than younger Millennials and Gen Z consumers ages 20 – 29 years old.
Average Home Prices Per Highest Millennial Ownership (Ages 20 – 39)
There are a few markets in Canada that have higher rates of millennial homeownership than others. While most of these cities also have lower average home prices, that data has proven to be not entirely indicative of millennial ownership.
#1 – Regina, Saskatchewan
In Regina, the average home price is $267,800. This market has the highest combined percentage of homeowners between the ages of 20 – 39 at 52%. Regina has the highest rate of homeownership, roughly 1.7 times more than Toronto, along with the lowest average home price among cities in the study.
#2 – Edmonton, Alberta
In Edmonton, the average home price is $398,229. This market has a combined total of 51% of homeowners between the ages of 20 – 39. Edmonton has the third highest overall number of mortgages per consumer and one of the highest rates of homeownership amongst older millennials, roughly 1.6 times more than Toronto and Vancouver.
#3 – Calgary, Alberta
In Calgary, the average home price is $458,300. This market has a combined total of 50% of homeowners between the ages of 20 – 39. Calgary has the second-highest overall number of mortgages per consumer and one of the highest rates of homeownership among older millennials, roughly 1.6 times more than Toronto and Vancouver.
#4 – Surrey, British Columbia
In Surrey, the average home price is $1,061,700. This market has a combined total of 49% of homeowners between the ages of 20 – 39. It has the highest average number of mortgages in any of the markets with an average house price over $460,000.
#5 – Winnipeg, Manitoba
In Winnipeg the average home price is $324,900. This market has a combined total of 48% of homeowners between the ages of 20 – 39. Winnipeg also has the fifth highest overall number of mortgages per consumer.
Average Home Prices Per Lowest Millennial Ownership (Ages 20 – 39)
The markets with the lowest amount of millennial homeowners tend to fall in much higher average price brackets, with a few exceptions.
#1 – Vancouver, British Columbia
In Vancouver, the average home price is $1,290,250. Unsurprisingly, this market has a combined total of 31% of homeowners between the ages of 20 – 39. Vancouver has the third-lowest overall number of mortgages per consumer and the lowest rates of homeownership among older millennials aged 30 – 39.
#2 – Toronto, Ontario
In Toronto, the average home price is $1,075,636. Unsurprisingly, this market also has a combined total of 31% of homeowners between the ages of 20 – 39. Toronto has the lowest rate of homeownership overall, the second-highest average home price among cities in the study and the lowest rates of homeownership among older millennials aged 30 – 39.
#3 – Burnaby, British Columbia
In Burnaby, the average home price is $1,074,167. This market has a slightly higher combined total of 37% of homeowners between the ages of 20 – 39. Burnaby has one of the lowest overall number of mortgages per consumer.
#4 – Hamilton, Ontario
In Hamilton, the average home price is $787,758. This market has a combined total of 38% of homeowners between the ages of 20-39. Hamilton has one of the lowest overall number of mortgages per consumer.
#5 – London, Ontario
In Burnaby, the average home price is $623,657. This market has a combined total of 39% of homeowners between the ages of 20-39. London has one of the lowest overall number of mortgages per consumer.
Top 5 Cities With Highest Millennial Homeownership (Ages 30-39)
There are certain areas in Canada that are a hotspot for millennials when it comes to homeownership opportunities. While some boast very low average home prices, others offer higher paying career opportunities and a lower cost of living.
#1 – Edmonton: 0.39 (home price: $398,229)
#2 – Calgary: 0.39 (home price: $458,300)
#3 – Surrey: 0.38 (home price: $1,061,700)
#4 – Winnipeg: 0.37 (home price: $324,900)
#5 – Regina: 0.37 (home price: $267,800)
Top 5 Cities With Lowest Millennial Homeownership (Ages 30 – 39)
On the flip side, you’ll find the cities where the lowest number of millennials are buying homes. Whether it’s incredibly high housing costs that have priced most people out of the market regardless of age, or lower average home prices in areas that notoriously skew older demographic wise, there are some areas in Canada that aren’t as enticing for millennials when it comes to buying a home.
#1 – Toronto: 0.24 (home price: $1,075,636)
#2 – Vancouver: 0.24 (home price: $1,290,250)
#3 – Halifax: 0.25 (home price: $468,790)
#4 – Burnaby: 0.28 (home price: $1,074,167)
#5 – Montreal: 0.29 (home price: $498,900)
Methodology/Citations
The findings cited within this blog are based on historical credit report data from Equifax® Canada of over 713,000 Borrowell members in Canada for Q2 2021 (April to June 2021) who have credit scores of 600 and above.
Average home price data was sourced from June 2021 through the Canadian Real Estate Association (CREA).
Mortgage trades are mortgages listed as credit accounts on credit reports. The average number of mortgage trades is calculated by adding the number of mortgage trades listed on credit reports and dividing the sum by the total number of credit reports. Canadians who fully own their homes or who own properties through business entities who do not have an active mortgage listed on their credit report are not included in this data set.
Conclusion
Major Canadian cities may be struggling with affordability, but the rate of homeownership is among the highest in the world. Calgary, Toronto, Vancouver and Montreal all made the top charts with some of the highest rates of ownership across the board.
While taking some measures to bring short-term relief to home buyers seems like a step in the right direction, it doesn’t actually address the core issues: accessibility to affordable housing and high household debt. Some of Canada’s largest markets, like those included in this chart, don’t have enough affordable housing options available for millennials, Gen Z and anyone looking to purchase a home who may not have the high income and low debt necessary to obtain a mortgage.
Millennials aren’t the only demographic struggling to afford homes in Canada. As Canada’s housing market continues to grow and evolve, it’s important to remember where its weaknesses lie and how those weaknesses may affect anyone’s ability to secure a mortgage for a home. If you’re unsure how to pursue homeownership or need some guidance in regard to best practices and financial strategies, our team can help!