What Renters Think

With the Vancouver and Fraser Valley markets exploding, keeping an eye on market trends is helpful for all potential buyers. One significant trend is the percentage of investors purchasing properties as compared to owner occupied sales. As much as 20% of sales were attributed to developers/investors in 2021.

With rents skyrocking in our area, it can be lucrative to collect rent on a  property purchase while you wait for development permits. With the huge property value increases we have seen over the last year, some buyers might see real estate as the best place to park their money.  Adding real estate to an investment portfolio is as popular as ever.

Here are clues and insight to what renters are thinking:

A new, informal survey offers some interesting insights into renters and their desire to become homeowners.

The Globe and Mail polled readers of a newsletter written by financial columnist Rob Carrick. More than 5,200 people responded. It is not a scientific study but, rather, a snapshot of what is on the minds of renters across the country.

It needs to be noted that the vast majority of the respondents live in either Toronto or Vancouver. These metropolitan areas account for about a quarter of Canada’s total population. They are also the two most expensive markets in the country.

Somewhat surprisingly the survey suggests that the largest group of renters, by far, is made up of people between the ages of 30 and 39. They came in at almost double the next biggest cohort: 40 to 49 year-olds. Twenty-somethings, who have long been considered the bedrock of the renting population, sit in 3rd spot just ahead of those aged 60 and over.

One thought has it that the younger group may be staying home with mom and dad because the cost of renting has become prohibitive. Rents have moved up, pretty much, in lock-step with the cost of buying. About 20% of respondents say they are paying more than half of their income in rent. That is well above the guideline that rent should not exceed 30% of gross income.

Coincidentally, 22% of respondents say they dislike or hate being renters. A similar portion say they like or love renting. More than half say renting has some positives, but they would rather own. Nearly a third feel they are being negatively “judged” for being renters.

Despite that, nearly two-thirds of those surveyed expect to rent forever because they will never be able to afford to own. Just 11% say they have made the choice to rent rather than buy.

If you are planning to purchase a property this year, whether for investment purpose or a new home, it would be prudent to prepare well ahead. Start preparations as soon as possible. Book a consultation today for documentation preparation, rate holds, and pre-qualifying. It will make a world of difference when you are out there shopping for real estate!