Parents do set an example for their kids. A new study by StatsCan shows that kids of parents who were or are homeowners are more likely to be home owners themselves when compared to those whose parents were renters.
That may not be surprising but, in today’s environment where homeownership costs are rising and many worry it is either out of reach or may slip away when mortgage renewal time comes, it is becoming a frequent topic of conversation.
The StatsCan study was tilted towards finding out whether the Bank of Mom and Dad was a factor. In other words, did Mom and Dad furnish a downpayment either via a gift or an inheritance?
But what the study actually showed is that homeownership in one generation will increase the likelihood of the next generation being a homeowner, more so if the parents hold multiple properties.
Government programs these days, unlike in previous administrations, tend to favour rental as the percentage of Canadians who own rather than rent is declining as funding is aimed at agencies to build rental accommodation, not tools to facilitate ownership.