Canadian renters may be adapting to a difficult housing market, but many haven’t given up on wanting a home of their own, or more room to live.

A new Canada Mortgage and Housing Corp. (CMHC) survey finds 60 per cent of renters consider buying a home important or somewhat important. Renters also aspire to considerably more space than they currently have, even as more than one in five are struggling to secure housing that meets basic affordability, safety and size standards.

CMHC measures that struggle through what it calls “core housing need.” 

A household is considered in core housing need when its housing is not affordable, safe or large enough, and its income is insufficient to rent alternative housing in its community that meets those standards.

The findings come from the 2024 Canadian Housing Survey, released Sept. 21, which looks at Canadians’ current housing circumstances as well as what they want from their housing over the next five to 10 years. The report is conducted every two years by CMHC and Statistics Canada.

 

Renters want more room

 

 

For renters, the gap between what they have and what they want can be significant.

Renters currently have an average of 1.9 bedrooms but aspire to 2.6, about 37 per cent more than they have now. Homeowners, by comparison, have an average of 3.2 bedrooms and aspire to the same number.

The difference is even greater among renters living in unsuitable housing. Those households have an average of 1.8 bedrooms but aspire to 3.3, or about 84 per cent more.

“This gap shows how far existing housing falls short of meeting their bedroom needs,” CMHC says, adding that the finding also points to increased overcrowding, particularly in high-rent markets such as Toronto and Vancouver.

Homeownership also remains an aspiration for many renters. Forty-seven per cent said beginning to purchase their own home was an important long-term goal and another 13 per cent said it was somewhat important. Twenty-eight per cent said buying a home was not important to them.

Across all households, 96 per cent considered having a safe and secure place to call home important or somewhat important. Seventy-two per cent said the same about building wealth through housing, while 73 per cent considered owning an asset to fund retirement important or somewhat important.

 

One in five renters in core housing need

 

Despite significant changes in Canada’s housing market, the overall rate of core housing need remained unchanged between the 2022 and 2024 surveys.

In 2024, 11.6 per cent of Canadian households were in core housing need, the same proportion as in 2022.

Renters were much more likely to be affected. The rate was 22.1 per cent among renters, compared with 5.7 per cent among homeowners. Renters in social and affordable housing had the highest rate, at 33.4 per cent, while 20.5 per cent of market renters were in core housing need.

Affordability accounted for 71 per cent of core housing need cases nationally.

“While adequacy and suitability matter, affordability is the main driver of core housing need across Canada,” CMHC says.

For the first time, the survey also distinguishes between renters in the primary and secondary rental markets. Core housing need affected 22.9 per cent of households in the primary market, compared with 18.4 per cent in the secondary market.

Income may help explain some of that difference. Average renter household income was $77,900 in the primary market, compared with approximately $90,000 in the secondary market.

 

Housing challenges vary by household

 

Core housing need also varied substantially depending on household type.

One-person households had the highest rate among the household types reported, at 20.4 per cent, followed by one-parent families at 19.1 per cent. By comparison, 6.7 per cent of couples with children and 5.1 per cent of couples without children were in core housing need.

The rate was 20.1 per cent among Indigenous households and 13.7 per cent among racialized households, compared with 10.6 per cent among non-racialized, non-Indigenous households.

 

Headwinds faced by racialized groups

 

The 2024 survey also introduced questions about experiences and perceptions of discrimination in the housing system.

 

The findings are based on respondents’ self-reported experiences and perceptions. CMHC says discrimination can occur while searching for a rental or home to purchase, seeking a mortgage or while already housed, including when requesting repairs, maintenance or accessibility accommodations.

Overall, 18.2 per cent of racialized respondents reported having experienced housing discrimination at some point in their lives, about three times the six per cent reported by non-racialized respondents. Black respondents reported the highest rate, at 30.2 per cent. Respondents who identified as Indigenous also frequently self-reported experiencing housing discrimination during their lifetime, at 16 per cent.