A recent consumer survey of Canadian attitudes about mortgage debt offers insight on tenants’ rationale for staying out of the home ownership market. While younger respondents most often cite financial reasons, an older renter demographic indicates it is more of a lifestyle choice.
The survey, conducted by Mortgage Professionals Canada as part of its annual report on the residential mortgage market, gave participants flexibility to check one or several items on a list of 10 reasons for not owning a home, along with an “other” option. Respondents aged 55 or older typically chose one or two of the declarations, heavily favouring: “Renting is a better option for me” (48 per cent); “I am comfortable in my current situation” (34 per cent); and “I am not interested in owning a home” (23 per cent).
Not surprisingly, only 4 per cent of renters aged 55+ report they need more time to save for a down payment, whereas that is the most common reason (46 per cent) for aspiring homeowners aged 18 to 34. These Generation Y respondents are also more apt to consider the concept of homeownership “too stressful” (17 per cent), and a large portion (28 per cent) are waiting for house prices to decline — a likelihood that only 3 per cent of respondents aged 55+ entertained.
Respondents aged 34 to 54 are the least likely to express contentment with their renter status (23 per cent). Financial reasons are their most common impediment to ownership with 32 per cent indicating they need more time to save for a down payment and 31 per cent claiming lack of financial and/or employment stability.
The spectre of future increases in interest rates creates relatively little nervousness, with only 6 per cent of all respondents calling it a reason for not owning. A large majority of respondents from all age groups also see housing as good place to put their money.
Indeed, although the older renter demographic was most likely to reject home ownership, only 1 per cent of respondents in the 55+ cohort maintain it is not a good investment — perhaps suggesting that they have previously been homeowners.
