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Why Homeownership Matters

Why Does Homeownership Matter?

Spring is always the perfect time to reflect upon the important role homeownership plays for both individuals and families in Regina. Not only does homeownership help strengthen our communities, it has a tremendous positive impact on the local economy as well.

The Triple Bottom Line

1. Homeownership and You. As people who live on the prairies, we have commonly linked the notion of property ownership to comfort, security, and overall well-being. Homeownership continues to be a cornerstone of the Canadian Dream. Providing families with a sense of emotional and financial stability and, historically, boosting household wealth through equity and appreciation over time.
2. Homeownership and the Greater Regina Area. Homeownership plays a vital role in helping to build strong, stable communities. In addition to it bolstering the City of Regina’s resources through taxes, research shows there are many additional social benefits provided by homeownership. Things such as increased volunteerism, improved health outcomes, and less crime. Homeownership has been proven to create deeper stakes in the nieghbourhood.
3. Homeownership and Our Economy. The housing market is a driving force in our economy. It’s the thread that runs through all aspects of our local economy, from construction to manufacturing. Homeowners tend to buy more local goods and use more services in their community, which further benefits the local economy.

Is Homeownership still Financially “Better” Than Renting?

Faced with significant pressures to ensure housing remains affordable, finance experts are constantly debating what the ideal homeownership rate would be for Canadians. Answers offered usually lack detailed evidence on the cost of homeownership versus renting. What is often missed in the conversation are the long-term socio-economic impacts experienced by individuals and families who are not able to attain homeownership in their lifetime.

Homeownership remains highly beneficial for most families, offering financial gains and a way to build wealth. This is especially true for those who expect to own their home for a long enough period to overcome the cyclical volatility of home prices. We have compared housing costs for borrowers who: a) purchased a $375,000 New Home (5% down), b) purchased a Resale Home built in 1975 listed at $260,000 (5% down), and c) Rented a home at $1,300 per month. We factored in a 1.5% appreciation rate, interest rates, the cost of borrowing, the cost of maintenance and repairs, etc. into ownership expenses, and compared these costs to the cost of renting (assuming a 1.5% rent increase annually). Ultimately, over a 25-year period, the costs associated with renting were more than $300,000 greater than the costs associated with owning a home.

Homeownership is not the universal panacea, but the financial and community benefits connected with homeownership cannot be overstated.