Owning vs renting: What’s best for you?

When considering renting or owning, realize that owning real estate has historically proven to be a lucrative financial investment.

Published Oct 16, 2026  •  3 minute read

Seen here; Le Sentier Towns by Rysense Development in Richmond Hill.

In today’s new home real estate market, renting is a valid option even though for decades, homeownership has been the dream of most Canadians. The great thing is that you have choice, which creates competition and is good for consumers.

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However, both new and resale home and rental markets in Canada are undergoing changes. Do some research so you can select wisely according to your life circumstances.

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Most of us who own homes rented before we could afford to buy. Plus, there are many perks to renting, beginning with not having to save a large down payment.

Typically, a security deposit of a month’s rent is required. Insurance costs are far less, and renters do not have to pay property taxes or worry about repairs. And around the world, there are numerous major cities that are predominantly rental when it comes to housing, such as New York, Paris and Hong Kong.

Developers nowadays who made their careers building new-construction condominiums are embracing the idea of purpose-built rental accommodations.

Part of the reason is they receive substantial incentives, such as GST rebates and the provincial portion of the HST, as well as easier construction financing.

This is a good thing, as we have needed more rental buildings in the Toronto area for a long time. According to Toronto.ca, during the 1960s, the city had built 128,169 rental apartments, compared to about 3,715 so far in the 2020s.

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Then later during the pre-construction condominium era, when sales of new condos rocketed, the lack of rental product led to many condo suites becoming rental stock.

Interestingly, demographics of renters have changed over the years. Certainly, young people who are not ready to commit to buying are renting, even though NOW is an ideal time for them to get into the ownership market, with prices dropping and supply dwindling. Some Millennials and Gen Z renters value life experience over financial gain through building equity.

For them, the outstanding amenities such as party rooms, fitness facilities, etc. in new rental buildings are more attractive. Adding to the appeal, in a purpose-built rental building, Property Management takes on facilitating wellness and social programs.

We also see empty-nesters who are cashing out by selling their large homes and moving into luxury apartments in high-end buildings. Floorplans are similar to those in condo towers, but with fewer studios.

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When considering renting or owning, realize that owning real estate has historically proven to be a lucrative financial investment. Owning offers a sense of belonging, and over time, owners can build equity, whereas renting does not offer that opportunity.

Our pre-construction real estate market is coming back, and savvy purchasers are jumping at the chance to own in this buyer’s market.

Plus, first-time buyers are finding ways to save for down payments: using part of their RRSPs, qualifying for numerous government programs for end-users, turning to parents or grandparents for help, buying jointly with friends or relatives … the list goes on.

Your financial situation will undoubtedly determine whether you can afford to buy or need to rent. Keep in mind that renting in a modern, purpose-built scenario translates to low maintenance, convenience and resort-style living.

Also keep in mind that for generations, homeownership has helped families and individuals amass assets that increase net worth.

In the grand scheme of investing in one’s future, owning a home offers stability in more ways than one. It’s up to you!

Barbara Lawlor is CEO, Partner and the driving force behind Baker Real Estate Inc. For more information, visit blog.bakerrealestate.com.

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