The cost of renting versus owning a home in British Columbia

The percentage of Canadians who own their home has been declining as many Canadian buyers have been shelving their hopes of buying their own homes. According to a recent survey carried out across Canada, the number of property owners is almost double compared to that of renters – with 9, 995,975 owning their home, as opposed to 4,953,840 who are renters. Not surprisingly, British Columbia is one of the most expensive provinces to own a home – right alongside Ontario.

Point 2 Homes administered a breakdown of the cost of renting or owning a property, and the report shows a minimal difference in costs in certain parts of the province. In Metro Vancouver, Richmond and Burnaby have the smallest disparity between those who rent vs own their property.

The report found that in Richmond, the difference in monthly cost between renting and ownership was only $122 per month, with home ownership costs totaling $1,794 and the costs to rent estimated at $1,672. In Burnaby, the disparity in renting vs owning is a little more significant, but still only $208 per month. The average cost for renters in Burnaby is $1,536, while the average price for homeowners is $1,744. In Kelowna, the difference in costs between renting vs owning a home is only $78 – or just 5.08%

The cost difference between renting and owning is more pronounced in other parts of British Columbia. For example, in Surrey – the cost of home ownership is estimated at $2,018 as opposed to the cost of renting, which is $1,434 – a sizable difference of $584 in the monthly cost. Vancouver is also substantially more expensive to be a homeowner rather than a renter – with homeowners paying approximately $2,084 but renters only paying $1,660.

However, this report only tells part of the story, as home ownership includes other costs, such as a down payment and other related transaction costs, as well as maintenance and repairs. Still, for many – home ownership is preferred over renting in almost all circumstances where the costs would be similar. Homeownership allows you to not only build up equity as your mortgage is paid down and the price of your property increases in value – it also provides something far more valuable to most people, which is the pride and sense of accomplishment in being a homeowner, and having your own home to raise a family in.