Owning your own home has long been a key life-goal and achieving it has been a proud moment. But there are signs that more Canadians are choosing to delay or even reject homeownership in favour of renting, even when buying makes financial sense.
In an age when economic uncertainly dominates headlines many young professionals, who would qualify for a home loan are attracted to some certainty in terms of rent versus a flexible mortgage payment and maintenance costs covered by the landlord. Although rents are rising in many markets there is the underlying fear of a housing correction that is prompting many to rent rather than buy at a high price.
Shaun Hildebrand of Urbanation believes that a correction in the condo market (his area of expertise) is unlikely with strong demand and interest rates only likely to rise slowly. However he told the Financial Post that the caution of consumers is understandable: “I think that’s a natural thing that happens when a real estate cycle, when it gets to the point where it has, where housing prices have gotten to the point they have.”
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