Canadian homeownership expected to hit new heights

Photo credit: Jacob Earl

Homeownership in Canada is expected hit new heights this year, according to the Bank of Nova Scotia.

Adrienne Warren, an economist from the lender, predicted that the next census report, due out next month, will see Canada have a homeownership of over 70 per cent. If true, this would see the country rank alongside the UK, US and Australian markets.

Other countries, such as Italy and Spain, may see figures reach as high as 80 per cent, far above more expensive markets, such as Switzerland, where homeownership is closer to 30 per cent.

In the 2006 census, 68.4 per cent of Canadian households owned their homes. "It was people in their early 20s buying as opposed to waiting until they got older. It probably continued," Warren said.

As house prices fall 0.9 per cent in June compared to 2011, though, the Financial Post adds that this may Change.

"We are at the peak of home ownership in Canada," Benjamin Tal, deputy chief economist at CIBC World Markets Inc., commented. "In fact, we are probably too high and it will probably go down."

Some Canadian  markets have already introduced new regulations to limit the amount homeowners can borrow.

"The government is saying you should not be a homeowner if you cannot afford it," adds Tal.