A new study by the Altus Group reveals that Canadian households with over $100,000 incomes have a rental property ownership rate of 10%.
Moreover, rental property ownership appears to be higher for households with residents below 50 years old, the population who may be driven by basement apartments and flats that homeowners are using to pay down their mortgages.
Chief economist Peter Norman said the quarterly Financial Industry Research Monitor survey – which the study was based on – “didn’t break down rental property ownership versus people simply renting out a piece of their principal residence”.
Despite lacking this, he confirmed there is previous data from Statistics Canada that addresses both.
He added that renting of secondary suites or basement apartments usually increases in tough times for people to cover their home ownership costs.
“When times are tough, more renters choose that [way to live] because it’s cheaper and more homeowners find they need to supplement their income,” Norman said.
“It does come and go and acts like a pressure valve in the housing market.”
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