In almost all Canadian metropolitan areas, home ownership rates rose throughout the 1990s, particularly between 1996 and 2001. This improvement was a response to factors that include accelerating income levels and low interest rates. Although the move towards home ownership promises to continue through 2005, not all Canadian families can join this trend whatever their dreams.

According to a recent Statistics Canada report entitled "Evolving Housing Conditions in Canada's Census Metropolitan Areas, 1991 to 2001," housing conditions improved significantly in Canada's 27 largest urban areas during the late 1990s after deteriorating earlier in the decade. Despite this advancement, more than 30 per cent of households in metropolitan areas lived below one or more housing standards in 2001.

This Stats Can report, which was produced with Canada Mortgage and Housing Corporation (CMHC) in collaboration with the Cities Secretariat of the Privy Council Office, assessed how well Canadians were housed using three housing standards:

• Whether the dwelling needed major repairs.

• Whether it had enough bedrooms for the size and composition of household members.

• Whether it cost the household 30 per cent or more of its total before-tax income.

Most households living in below-standard housing were in that state in 2001 primarily because their home or apartment did not meet the affordability standard. Affordability remains a barrier to ownership today.

The objective of this and related reports is to provide statistical measures of trends and conditions in Canada's larger cities for use in urban planning and policy development. This information and the work of the Cities Secretariat will help Prime Minister Paul Martin fulfill his commitment to forge a New Deal with cities -- "the engines of Canada's growth."

The proportion of owned accommodation in Canada increased from almost 63 per cent in 1991 to nearly 66 per cent 10 years later. The largest increase during the decade occurred in Calgary where home-ownership rates jumped 10 per cent, but still fell short of the highest proportion of home ownership: in Oshawa, Ontario, more than three-quarters of all households owned their own home.

Households that rented were much less likely to live in affordable housing than property owners, meaning that they were more likely to spend 30 per cent or more of their total before-tax household income for shelter. Lower household incomes among these renters meant they could not qualify for "cheaper to buy than rent" mortgages that converted more financially-sound tenants into owners.

The net effect over the decade was that the proportion of owners living in affordable housing rose, while that of renters declined. As property values increased in the following years, these owners have benefitted financially from their initial investment.

CMHC's Rental Market Survey 2004, conducted each October to provide annual vacancy rate and rent information on privately-initiated apartment structures containing at least three rental units, reveals that the trend towards home ownership and higher vacancy rates continues:

• The average rental apartment vacancy rate in Canada's 28 major centres rose to 2.7 per cent in October 2004 from 2.2 per cent a year ago, the third consecutive annual rise in the vacancy rate. The increase in apartment availability is attributed to low interest rates which facilitate home ownership and to the creation of additional rental housing. This improved availability does not automatically mean an increase in affordable housing. Households forced to pay more than 30 per cent of their income for rent or to live in crowded conditions continue to need less expensive units or assistance with monthly shelter costs.

• Even finding an apartment is a challenge in British Columbia which has the tightest metropolitan rental market in Canada. In Victoria, vacancy rates fell by 0.5 percentage point to 0.6 per cent while in Vancouver, the rate declined by a bit more to 1.3 per cent. In comparison, the vacancy rate in Toronto, long the toughest city to rent in, increased slightly to 4.3 per cent, but affordability remains an issue.

• Average rents for two-bedroom apartments increased in all major centres, except Windsor, Ontario, where rents were unchanged. The highest average monthly rents for two-bedroom apartments were in Toronto (C$1,052), Vancouver (C$984) and Ottawa C$940).

Will 2005 be your year to join the Canadian trend towards home ownership?

Published: January 11, 2005

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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life. Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.