Despite record home prices, a significant number of Canadians own more than one property

July 28, 2021

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More than one Property

You may be surprised to know that more than one in ten homeowners in Canada’s three largest urban centers – the greater regions of Toronto, Montreal, and Vancouver – currently owns multiple properties.  A recent Royal LePage survey, conducted by Leger, found that 14% of homeowners in Greater Vancouver own more than property.  Similarly, 13% of homeowners in the Greater Toronto Area and 12% in the Greater Montreal Area own multiple properties.

While rapid home price appreciation can be challenging for potential buyers, as we’ve seen over the last year and a half, homeowners have taken advantage of the growing equity in their properties.  Of secondary property owners in the Toronto and Vancouver areas, 42% said they used equity from their primary residences to buy a secondary unit.  Meanwhile, in the Greater Montreal Area, where home prices are more affordable, that number drops to 21%.

What’s more, secondary property owners in Toronto and Vancouver are more likely to use the residence as an investment, collecting income on the property at least some of the time.  More than two thirds of respondents in Greater Vancouver (65%) and the Greater Toronto Area (64%) said they were collecting rental income on their secondary properties, if only some of the time.  In the Greater Montreal Area, that number decreased to 35%.

“While some secondary properties are used for recreational purposes, many of these homes are foundational to Canada’s critical supply of rental housing,” said Phil Soper, president and CEO, Royal LePage.  “Entrepreneurial landlords supply housing to the thirty per cent of Canadians who rent, be they new immigrants, students, young people entering the labor force or those who cannot or choose not to own their home.”

In the Greater Toronto Area, 27% of secondary property owners are using the home for recreational purposes, while 49% have their secondary unit rented out full-time, and 15% are using the property some of the time and renting it out some of the time.  Canadian homeowners believe in the value of real estate because they have seen their investments grow in the long run and real estate remains to be a crucial part of retirement planning.

The Royal LePage 2021 Secondary Properties Report includes regional data for the greater Toronto, Montreal and Vancouver areas.  To learn more, check out the data charts.