A recent study conducted by Statistics Canada reveals that parental homeownership significantly influences the likelihood of their adult children owning a property. The study, which utilized tax data and information from the Canadian Housing Statistics Program, analyzed the homeownership rates of adult children born in the 1990s. It found that those whose parents owned homes were twice as likely to own a home themselves compared to those whose parents did not own property.
According to the study, the homeownership rate among children of homeowners was 17.4%, while children of parents without property ownership had a homeownership rate of only 8.1%. The disparity was even more prominent among children whose parents owned multiple properties, with a homeownership rate of 23.8%. The study also highlights the positive relationship between parental property ownership and their children’s likelihood of homeownership, even after controlling for income, age, and province of residence.
In addition to the homeownership gap, the study found significant differences in the average income of adult children who owned homes versus those who did not. Non-homeowners had an average income of $36,000, while homeowners had an average income of $65,000. Adult children with parents who owned multiple properties had an income approximately $6,000 higher than non-homeowners.
The study also suggests that the regional variations in homeownership rates correlate with housing market conditions. Higher property values in regions like Ontario and British Columbia require higher incomes for homeownership, making parental property ownership or wealth more influential in their children’s homeownership outcomes.
These findings shed light on the growing issue of housing affordability and the increasing reliance of younger generations on financial support from their parents to enter the housing market. As property prices continue to rise, it becomes more challenging for young Canadians to achieve homeownership without assistance.
- What did the study by Statistics Canada find?
- What was the homeownership rate among children of homeowners?
- What were the average incomes of homeowners and non-homeowners?
- Which regions had the highest and lowest homeownership rates?
- Why is parental property ownership more influential in regions with higher property values?
The study found that adult children of homeowners had a significantly higher likelihood of owning a home compared to those whose parents did not own property.
The homeownership rate among children of homeowners was 17.4%.
Non-homeowners had an average income of $36,000, while homeowners had an average income of $65,000.
New Brunswick had the highest homeownership rate at 20.5%, while British Columbia had the lowest at 14.1%.
In regions with higher property values, higher incomes are necessary for homeownership. Therefore, parental property ownership or wealth plays a larger role in their children’s homeownership outcomes.