Co-ownership in Canadian Real Estate: A Solution to the Affordability Crisis

As housing prices across the country continue to soar, a growing number of Canadians are finding it increasingly difficult to afford their dream homes. In light of this challenging situation, a recent survey conducted by Royal LePage has shed light on a new trend emerging in the real estate market - co-ownership. 

According to the survey, six percent of Canadian homeowners currently co-own their properties with someone other than their spouse or partner. This indicates a significant shift in the way people are approaching homeownership, with affordability being cited as the primary motivating factor for almost 76 percent of these co-owners.

The survey further reveals that the desire for affordable housing is particularly prevalent among individuals between the ages of 25 and 34, with 83 percent of co-owners in this age group attributing their decision to co-purchase to the rising housing costs. This surge in interest towards co-ownership by young Canadians can be attributed, in part, to the Bank of Canada's decision to increase interest rates in March of 2022.

When it comes to who these co-owners are, the majority - 89 percent - are family members, while seven percent co-own with friends. The remaining four percent consists of individuals who opt to co-own with business partners or other acquaintances. The familial bonds in co-ownership arrangements foster a sense of trust and shared responsibility, which can greatly contribute to successful co-ownership experiences.

While some co-owners choose to live together in the same property, others do not. The survey indicates that 44 percent of co-owners share their living space with their fellow co-owner, while 28 percent live separately. It is worth noting that six percent of respondents stated that neither they nor their co-owner utilize the shared property as their primary residence, but instead view it as an investment or as a seasonal or recreational property, such as a cottage.

Co-ownership has emerged as a viable solution for Canadians facing the affordability crisis, allowing them to overcome financial barriers and achieve their homeownership goals. By pooling resources with another party, potential homebuyers can increase their purchasing power and gain access to a wider range of housing options. Furthermore, the shared financial burden among co-owners can help alleviate the strains associated with mortgage payments and other homeownership expenses.

The benefits of co-ownership extend beyond its financial advantages. For many individuals, co-purchasing with trusted family members or friends allows for the creation of a strong support system within the home. This shared sense of community fosters a positive environment for personal growth, increased happiness, and enhanced well-being.

In conclusion, the rising cost of housing in Canada has made it challenging for many prospective homebuyers to enter the market. However, the growing trend of co-ownership presents a promising alternative that empowers Canadians to overcome the financial obstacles hindering their homeownership dreams. By joining forces with family or friends, individuals can enjoy the benefits of shared responsibility, increased purchasing power, and a sense of community.