Who’s happier, homeowners or renters? Data says it’s complicated

Homeowners in Canada are more likely than renters to report overall high life satisfaction, a new Statistics Canada report has revealed.

However, the gap reduces significantly when the kind of dwelling, among other factors, is accounted for.

“On average, individuals who own their dwelling report higher satisfaction with their dwelling, neighbourhood and life than renters,” a StatCan report released on Wednesday said.

In data collected from January to June of 2021, survey respondents were asked to rate their satisfaction levels on a scale of 0 (lowest satisfaction) to 10 (highest satisfaction).

Renters, on average, rated their levels of life satisfaction at 6.9, while owners with a mortgage rated their satisfaction at 7.5. Owners without a mortgage reported being more satisfied, with a 7.9 rating.

However, the data also suggests there’s more to it than that.

“The majority of the dwelling satisfaction gap between renters and owners could be attributed to owners being more likely to reside in single-detached dwellings, with more bedrooms, and fewer dwelling issues such as mould or pests,” the data said.

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The StatCan report said renters were considerably less satisfied with almost every aspect of the quality of their dwelling, with things such as inadequate soundproofing and temperature control.

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The report showed that renters were also living in considerably smaller spaces with fewer bedrooms.

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It said 65 per cent of renters, compared with 11 per cent of owners (with or without a mortgage), resided in apartments, with most of this difference reflected in the larger share of owners residing in single-detached houses.

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It added that while 27 per cent of renters lived in a dwelling with three or more bedrooms, almost three times as many owners did so, at 75 per cent among those without a mortgage and 80 per cent among those with a mortgage.

Carolyn Whitzman, housing policy expert and author of the book Home Truths: Fixing Canada’s Housing Crisis, said there is nothing inherent in renting that makes people less satisfied. She said housing policy in Canada gives renters very little control over their living conditions.

“Denmark has much higher rates of renters than Canada, but they have higher self-reported quality of life. In Switzerland, for instance, 61 per cent of households are renters or non-homeowners and they have a far higher income per capita. So being a renter doesn’t have to be second class. But the way that housing policy in Canada has worked, renters are second class,” she said.

“If you want to have children, you may find yourself forced to go into homeownership simply because there aren’t enough family-sized rental apartments available.”

All these considerations, along with fear of being evicted and lack of tenure security, can be among the factors leading people into homeownership.

“People find themselves forcing themselves to be owners, including (taking on) a lot of risks associated with debt. Because the situation for renters can be so bad in terms of tenure and security and not having the confidence that you’ll be able to stay where you live,” she said.

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“If you look at what psychologists have to say, the sense of security of being able to stay in a place that you love is tremendously important to your mental health.”

Renovictions, for example, have become a growing concern. That’s where tenants are evicted for renovations to rented units that often lead to the unit being listed afterwards for a higher price.

Whitzman said policy changes will have to be accompanied by a societal shift in treating all forms of housing with equal dignity.

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“In Canada and the U.S., a lot of self-identity has been around the myth that everybody can and should become a homeowner,” she said.

“But if you move a lot for work or if you simply want to invest in other things other than your home, you should have that option with decent, stable, affordable rental accommodation.”

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