A look at renter and homeowner satisfaction with their home and neighbourhood

Two-thirds of Canadian households reported being a homeowner during the 2021 Census of Population. However, most Canadians rent at some point, whether it be when they are young and starting out in life or older and downsizing. Some Canadians are renters their entire life, either by choice or circumstance.

While homeowners generally report higher levels of satisfaction with their dwelling than renters, when other factors are considered—such as household, dwelling and neighbourhood characteristics—the gulf narrows, and in some cases, disappears entirely. When it comes to proximity to amenities, renter satisfaction with their dwelling exceeds that of homeowners.

Few renters live in a single-detached home

A recent report, using 2021 Canadian Housing Survey data, found that most of the dwelling satisfaction gap between renters and owners could be attributed to owners being more likely to live in single-detached homes, with more bedrooms and fewer dwelling issues such as mould or pests.

For example, 14% of renters lived in a single detached home in 2021, compared with just over two-thirds (69%) of homeowners with a mortgage and three-quarters (75%) of homeowners without a mortgage.

Dwelling issues were also much more prevalent among renters, with 20% reporting issues with pests such as bed bugs, mice or cockroaches, compared with 12% of homeowners with a mortgage and 10% of homeowners without a mortgage.

Renters (8%) were also twice as likely to have issues with mould or mildew as homeowners with a mortgage (4%) and four times more likely to have this issue compared with homeowners without a mortgage (2%).

Experiencing financial difficulties plays a major role in the life satisfaction gap of renters versus homeowners

The life satisfaction gap between renters and homeowners is also largely tied to household composition differences such as homeowners being less likely to experience financial difficulties.

For example, over half of renters (56%) fell within the bottom 40% of income earners in Canada in 2021, compared with 20% of homeowners with a mortgage and 43% of homeowners without a mortgage. Renters also often have a lower earnings capacity than homeowners by virtue of more renters living alone (46%) compared with homeowners with or without a mortgage (17% and 30%, respectively).

The high rate of homeowners without a mortgage in the bottom 40% suggest that many may be retired. Indeed, over half (55%) of all homeowners without a mortgage were 65 years of age or older in 2021.

Given more renters live on a lower income, it is perhaps not surprising that renters (8%) were much more likely to report financial difficulties than homeowners with (4%) and without a mortgage (2%) and much more likely to spend 30% or more of income on shelter costs (31% of renters, versus 22% of homeowner with a mortgage and 8% without a mortgage).

Renters tend to be younger and have more issues with their neighbourhood

Another reason for the perceived satisfaction gap between renters and homeowners is the stage they are at in life. Renters are much more likely to be young people starting off their adult lives. In 2021, for example, over one in four renter households (28%) were 34 years of age or younger, compared with 4% of homeowners without a mortgage.

Renters were also more likely than owners to report problems such as noise, litter, illegal activity, pollution and abandoned buildings in their neighbourhood. This finding may reflect differences in neighbourhood income, because the average renter lived in a neighbourhood where the median adult-equivalent adjusted family income was $43,000, compared with $55,000 in neighbourhoods of homeowners with and without a mortgage.

Renters the clear winner when it comes to convenience and amenities

When it comes to convenience and access to amenities, renters come out on top compared with homeowners.

For example, approximately 9 in 10 renters lived within 1.5 km of a health care or childcare facility in 2021, while four in five lived close to a pharmacy or a primary school.

By way of comparison, less than two-thirds (63%) of homeowners without a mortgage lived within 1.5 km of a primary school and just over half (51%) lived within 1 km of a pharmacy.

Renters (66%) were also much more likely to live within 1 km of a grocery store than homeowners with a mortgage (41%) and those without a mortgage (38%).

A final word on renters

Renting versus buying your primary residence is often pitched as a purely financial decision. But housing tenure also matters when it comes to Canadians’ well-being and satisfaction.

On average, individuals who own their dwelling, report higher satisfaction with their dwelling, neighbourhood and life overall than renters. While this may be attributable to a preference for ownership, most of these differences in satisfaction reflect the distinct housing realities of owners and renters.

In the end, comparable owners and renters, living in comparable dwellings and neighbourhoods, report similar satisfaction levels.

For more information, check out the report Homeowner-renter dwelling, neighbourhood and life satisfaction gaps.