Are We Headed Towards A Renters Economy ?
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Are We Headed Towards A Renters Economy ?
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We explore whether Canada is moving toward a "renters economy" where more people rent homes rather than own them. It examines historical housing trends, current market conditions, and international comparisons to assess if Canada is following countries like Germany where renting is normalized.
- "You'll own nothing and be happy" represents a subscription-based future economy
- Canadian homeownership rose from 40% (1940) to 60% (1970s) due to post-WWII government policies
- Millennials face the highest barriers to homeownership
- Current construction favors rental units (108,000) over condos, boosted by CMHC incentives
- Germany normalizes renting with strong tenant protections, 11-year average tenancies
- Real estate makes up 28% of Canada's GDP, possibly diverting investment from more productive sectors
- A rental economy shift could improve tenant protections and amenities while increasing property values
- Canada appears to be gradually shifting toward a rental-focused housing landscape
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