Homeownership rate

The homeownership rate is projected to reach 65.8% in 2025, representing a modest increase from 65.7% in 2024. This slight uptick indicates potential stabilization in homeownership levels after several years of gradual decline from historical peaks. The current rate reflects ongoing affordability challenges that continue constraining homeownership accessibility, particularly for younger households and first-time buyers. Rising interest rates, elevated home prices, and stricter mortgage qualification requirements have maintained barriers to homeownership despite strong underlying demand. The modest improvement suggests some market adjustment may be occurring as housing costs moderate relative to incomes, though homeownership remains significantly below the peaks achieved during the 2000s and early 2010s when rates exceeded 69%.

The homeownership rate has experienced a continued gradual decline over the five-year period from 2020 to 2025, falling from 66.8% to a projected 65.8%. This trend represents an extension of the longer-term adjustment that began following the 2014 peak of 69.5%. The decline reflects persistent affordability challenges that have made homeownership increasingly difficult for many Canadian households, particularly younger demographics who traditionally drive homeownership growth.

The five-year period has been characterized by multiple headwinds affecting homeownership accessibility. Rapid home price appreciation during the pandemic period significantly outpaced income growth, creating affordability gaps that excluded many potential buyers from the market. The subsequent interest rate increases implemented to combat inflation further constrained purchasing power by increasing mortgage costs and tightening qualification requirements. These financial barriers have been particularly pronounced in major metropolitan markets where employment opportunities are concentrated but housing costs are highest.

Demographic factors have also contributed to the homeownership decline. Millennials, who represent the primary homebuying cohort, have faced unique challenges including student debt burdens, delayed household formation, and economic uncertainty that have postponed homeownership decisions. The shift toward rental housing has been reinforced by changing lifestyle preferences and mobility requirements that favor rental flexibility over ownership commitments.

Government policy responses including enhanced first-time buyer programs and mortgage rule adjustments have provided some support, but these measures have been insufficient to offset broader affordability pressures. The persistent decline in homeownership rates reflects structural changes in housing markets that extend beyond cyclical economic conditions, suggesting fundamental shifts in housing accessibility and tenure patterns across Canadian demographics.