More young homeowners in rural areas than cities
CTV.ca News Staff
Young adults in rural and small towns were more likely to become homeowners than their counterparts in Canada’s three largest cities in 2006, says a report from Statistics Canada.
The report cites higher housing costs in Vancouver, Toronto and Montreal as the main reason for the gap. Another factor is the relative scarcity of rental housing in less populated areas.
In the study, Statistics Canada defined “young adult” as those between the ages of 25 to 39.
In Canada, six of every 10 people aged 25 to 39, who did not live with their parents, owned their own home in 2006.
The study, based on data from the 2006 General Social Survey (GSS), showed the proportion was highest (71%) among people in the age group who lived in a rural area or small town.
In contrast, 54% of people from the age group owned their own home in Vancouver. The amount dropped to 53% in Toronto and 48% in Montreal.
The study found that household income was one of the “biggest” factors on the likelihood of owning a home.
Only 22% of young adults reporting a household income of less than $30,000 annually were homeowners in 2006. On the other hand, 68% of those with a household income of $50,000 to $80,000 were homeowners, as were 82% of those with an income of $100,000 or more.
Still, in rural areas 40% of young adults who had household incomes of under $30,000 annually were homeowners. The rate was only 16% among young people living in one of Canada’s six largest metropolitan areas.
Additional factors
Overall, three-quarters of those aged 25 to 39 who no longer lived with their parents said owning their own home was very important to them.
Aside from rising housing prices, many in the age group delayed buying a home because they decided to stay in school longer.
Young adults were most likely to own a home if they were married and had children.
In 2006, 79% of married young adults who had children owned their own home. This proportion was only 40% among individuals living alone and 33% among single parents.
Almost two-thirds (64%), of young adults born in Canada and no longer living with their parents were homeowners.
Meanwhile, less than half (48%) of those who immigrated five to nine years prior to the survey were homeowners.
Homeownership rates also varied with age and employment.
Only 38% of young people between the ages of 25 and 27 owned their own home in 2006. In contrast, 73% of those aged 37 to 39 owned a home.
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