News

Despite some rocky months in the real estate market, Canadians have not become disgusted or disenchanted with home ownership.

That’s the conclusion of a study commissioned by Genworth Financial Canada.

The national survey, conducted this spring by Environics Research Group, asked if owning a home provides a greater sense of emotional well-being and security. Eighty-four per cent said it does. And 85 per cent fall into the camp that says “even though home ownership may mean more work and effort,” they’d rather own than rent.

Of the 2,521 people surveyed, 88 per cent say they would feel more financially secure owning their own home.

Genworth Financial Canada is in the mortgage insurance business so, it’s safe to say, the results are good news for them.

Genworth also asked Michael Haan, professor of social policy at the University of Alberta, to take a look at the numbers.

Prof. Haan says he is surprised that Canadians across so many regions seem to have so much in common. It’s clear that many people look at their houses as a psychological and emotional investment, he said in a telephone interview.

People in Vancouver, the survey suggests, are most likely to experience personal fulfilment from buying a home, with 88 per cent of respondents in that city offering a positive response.

In Toronto, the percentage is 77 and, in Montreal, 71.

Prof. Haan speculates that it could be because of - not in spite of - the economic turmoil that people are registering such strong levels of attachment to their houses.

“There’s the possibility that people are using their homes as a refuge if they can no longer afford to go out for an expensive restaurant meal.”

The professor says he was interested to see that the pro-home ownership sentiment is as high as it is in Montreal because the city is home to so many renters.

Prof. Haan, who has studied the impact and experiences of immigrants who buy real estate in Canada, says that newcomers who buy houses help to build social capital as well.

“People who invest in homes also see merit in investing in their street and their neighbourhood,” he says.

The pay-offs come in the form of cleanliness, better schools and lower levels of crime, he adds.

Overall, the professor thinks that Canadians are in a more buoyant mood than Americans.

He lives in Edmonton, where house prices have slipped about 10 per cent. That makes it one of the harder hit cities in the country.

But compared with many cities in the United States, the decline has been mild and therefore Canadians are heartened by the stability, he figures.

“In the U.S., I would think a lot of these numbers would be lower.”

Looking ahead, Prof. Haan says the survey numbers suggest that the Canadian real estate market is going to remain solid. People pass on their opinions to their friends and children, so they’re likely to influence others to have an upbeat view.