Whether or not one owns a home depends on personal preferences, market conditions, the generation you belong to, and among other factors, the province you live in. According to Statistics Canada, the national homeownership rate dropped from 69% in 2011 to 66.5% in 2021, but several provinces have homeownership rates higher than that. Age also plays a factor in influencing homeownership rates, with generally older populations having higher rates of homeownership.
To understand how the proportion of Canadians who own their homes has changed across Canada and generations, Zoocasa analyzed Statistics Canada data to compare the homeownership rates and average home prices in each province from 2011 and 2021.
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More Affordable Provinces Have Higher Homeownership Rates
Newfoundland and Labrador, which had the second-lowest average home price in 2021 at $263,900, is the province with the largest proportion of homeowners. The homeownership rate in Newfoundland and Labrador was 77.5% in 2011 and in 2021 it decreased by just 1.8% to 75.7%. During that period, the average home price increased by just 9.3% – by far the smallest rate of growth among all of the provinces and likely a large factor as to why the homeownership rate remains so high there. Even in the past two years, when most provinces saw tumultuous ups and downs in home prices, the average home price in Newfoundland and Labrador has steadily climbed and reached $295,400 in September 2023.
New Brunswick had the lowest average home price in 2021 at $239,900 so it’s no surprise that the homeownership rate in the province is the second-highest in the country at 73%. In September 2023, New Brunswick was the most affordable province with an average home price of $292,600, though prices are catching up to that of Newfoundland and Labrador. From September 2021 to September 2023, New Brunswick experienced the largest rate of price growth of all of the provinces at 22%, suggesting demand will continue to grow.
Alberta and Saskatchewan were the only other provinces with homeownership rates in 2021 above 70%, at 70.9% and 70.7% respectively. The homeownership rate in Saskatchewan in 2021 decreased by 1.9% from 2011, while in Alberta the rate decreased by 2.7%. Alberta has seen a large influx of residents – from both interprovincial migration and immigration – which has caused the housing demand and prices to increase. According to Statistics Canada, in 2022/2023 36,931 British Columbians and 37,379 Ontarians moved to Alberta. Despite demand being hot, a lack of inventory may be keeping would-be buyers stuck in the rental segment.
Prospective Buyers Squeezed Out of Major Markets
Despite having relatively affordable home prices, Quebec has the lowest homeownership rate at 59.9%, however, the province also experienced the smallest change in the homeownership rate from 2011 to 2021, declining by just 1.3%.
British Columbia and Nova Scotia are tied for having the second-lowest homeownership rates at 66.8% and both saw significant drops from 2011. In British Columbia, the homeownership rate fell by 3.2% from 2011 to 2021, and one explanation for this is its rapid price acceleration. In 2011, the average home price in British Columbia was $506,100; by September 2021 it rose by 80% to $910,800. Now, that number has accelerated even further to $988,300 in September 2023.
Apart from Prince Edward Island, which experienced a 4.6% drop in the homeownership rate from 2011 to 2021, Nova Scotia had the second-greatest change in the homeownership rate, falling by 4%. From 2011 to 2021, the average home price in Nova Scotia increased by 78.7% and in just the past two years it rose by 14.5% – more than British Columbia and Ontario. Low wages and a rising cost of living are keeping the homeownership rate lower in Nova Scotia.
Ontario stands out for having by far the largest increase in average home price from 2011 to 2021, rising by $135.4%. This, combined with the fact that the average income has not kept pace with rising mortgage payments, partly explains why the homeownership rate decreased by 3.1% from 2011 to 2021.
Millennials Have the Hardest Time Buying a Home
Millennials, those born between 1981 and 1996, not only have the lowest homeownership rate but also experienced the largest decrease in the homeownership rate. Young Millennials in particular are struggling to enter the real estate market and in a recent Zoocasa survey of over 1,600 Canadians, 67% of Millennials said they have delayed buying a home.
From 2011 to 2021, those aged 25-29 experienced the largest drop in the homeownership rate from 44.1% to 36.5%. Following that, those aged 30-34 and those aged 35-39 experienced the next largest 10-year change in the homeownership rate, dropping by 11.7% and 8.3% respectively.
In fact, only those aged under 40 have a homeownership rate below the national average of 66.5%. Those aged 40-44 are closest to the national average, while those aged 45 and above have homeownership rates much higher than the national average. Those aged 65-69 have the highest homeownership rate at 75.6%, while those aged 75-84 were the only group to experience an increase in the homeownership rate from 2011 to 2021.
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