Homeowners’ net worth vs. renters’ and the Home of the Week: Canadian real estate news for November 1

Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Statistics Canada survey shows homeowners’ net worth dwarfs that of renters

A StatsCan survey shows that the youngest homeowners typically have a net worth at least 10 times that of renters in the same age cohort, and the gap widens to almost 30 times for those nearing retirement age, writes Rachelle Younglai. For the youngest families – where the highest income earner was under the age of 35 – the median net worth of homeowners was $457,100 last year, while renters in the same age group had a median net worth of $44,000. Some experts say the survey highlights the urgency young Canadians feel toward owning a home to begin accumulating wealth.

Poilievre vows to remove GST on new homes under $1-million

Federal Conservative Leader Pierre Poilievre said that eliminating the 5-per-cent GST would help spur more home building at a time when developers have been hit by rising construction and labour costs, write Younglai and Stephanie Levitz. He claims that the tax break would lead to lower housing prices, because developers would pass the savings on to buyers. Housing policy is expected to be a dominant theme in the next election, and the Liberals and Conservatives have wrestled for popular support on the issue for years.

Definition of ‘multiplex’ snarls developments, builders say

Small-scale builders are claiming that bureaucrats are putting up roadblocks to prevent the construction of multiplexes in Toronto, which were designed to ease the housing and affordability crisis, writes Shane Dingman. In 2023, Toronto passed changes to its zoning and planning laws that would permit multiplexes to be built across the city. Now, more than a year later, some interpretations of the law change are showing up in City reports that recommend rescinding some of those permissions and making the process more complicated again. Some developers say they feel frustrated that a clear push to create more affordable housing is getting muddled by these new interpretations.

Opinion: On the housing market sidelines? Watch for this mortgage rate milestone

Mortgage rates have come down from around 6 per cent to the mid 4 per cent zone, but how much more do we need to get buyers to step up? According to a recent note from BMO Economics, rates of 3.9 per cent or better would do the job, writes personal finance columnist Rob Carrick. A 3.9 per cent mortgage rate plus a 30-year amortization brings us back to pre-pandemic levels for mortgage payments as a percentage of household income, BMO said. If lower mortgage rates revive sales, expect widespread price gains that undercut the benefits of borrowing costs.

Home of the Week: Toronto penthouse a perfect backdrop for art

25 Ritchie Ave., unit 510, Toronto – Full gallery here

To enter this two-storey penthouse, you must first pass through a central courtyard, designed to encourage neighbours to mingle as they shift around for their keys. Past the entrance, the condo throws an immediate curveball to its visitors: the bedrooms are all on the lower floor, and the living space is above – intended to prevent guests from passing by any private areas as they walk up the stairs to the lounging area inside. High ceilings in the cozy living space make for perfect location for large art pieces or photographs.