There really is no place like home

The Canadian proverb “there’s no place like home” is now more meaningful than ever before. Considering that phrase in the practical sense, it has long been known that owning real estate is one of the most lucrative ways to accumulate household wealth. In fact, a home or condominium is the single largest household investment for most people. Whether it is a financial or lifestyle investment – or both – a property is a tangible asset that is much more easily understood than stocks and bonds.

Just before the pandemic, a U.S. survey showed that homeowners had on average 40 per cent more household wealth than renters. Homeownership is the dream of most Canadians and immigrants to our country for financial investment potential, but for much more. Often overlooked is the psychological aspect of owning.

Putting down roots

In 2022, a Canadian study resulted in 75 per cent of participants stating that their home has become even more important to them because of the COVID pandemic. That is easy to understand, as the pandemic forced most of us to rely on our homes more than before COVID hit. During those difficult years, our homes were where most of us lived, played and worked. Before and since then, the home has been a gathering place for family and friends – where lifelong memories are made and celebrated.

Owning a house or condominium brings with it a sense of permanency, of belonging to a community. Many call it “putting down roots,” which may be a cliche, but it has an underlying truth to it. Recent surveys also show that most homeowners consider comfort and safety in their homes and communities extremely important. This fact shines a light on a family’s surroundings being considered “home” as well as their house or condo. That is why so many residential developers spend time and effort into ensuring their homes and condominiums are situated in areas where people will want to live. It is also why so many immigrants flock to Canada for the relatively safe lifestyle we enjoy.

More educated buyers

Over the past handful of years at Baker, we have found that younger buyers are more educated than ever on the ins and outs of purchasing and owning real estate. Economic challenges such as rising prices and interest rates have kept some from signing on the dotted line, but in the end, people are still finding ways to live out their dream of homeownership. Whether it is through co-owning, cashing in RRSPs, or accepting help from the bank of mom and pop, we see a new generation jumping onto the homebuying wagon. This is a smart move both financially and psychologically.

As challenging as the real estate market has become since the pandemic, people still need homes to fulfill their Canadian dream. I wish you a wonderful, healthy, happy new year. And remember that when it comes to wellbeing and happiness, there really is no place like home.