Renter-homeowner divide creating in Canada: RBC report

 

Renters vs. homeowners is another division created in Canada after the haves and have nots. The persistent unaffordability of the Canadian housing market is widening the wealth divide between renters and homeowners, according to a report by Royal Bank of Canada. RBC economist Carrie Freestone says in the report that Canadian renters are being squeezed more than homeowners, making home ownership a distant dream.

The third quarter of 2023 marked a turning point for renters and homeowners. Both groups recorded declines in net wealth, the report said. But Freestone notes that renters have been hit the hardest. There was a decline in the value of their financial assets. These group members are dissaving group. They spend more than they earn.

In 2023, renters spent nine per cent more than they earned, according to the report, citing Statistics Canada's report.

High housing costs are driving the divide. Although renters and homeowners have seen their salaries rise at the same pace since the late 1990s, the proportion of those paying for housing costs has grown faster, the report indicates.