Stop putting homeowners on a pedestal and focus on creating cohesive communities, a University of Guelph professor says.
“Are homeowners better neighbours … better citizens? That's not the case,” believes Diana Mok, professor of real estate, who urges people to think of homes as more than an asset and look to the social benefits shared with renting.
“Then perhaps we'll shift our attention from buying to thinking about building neighbourhoods, building the amenities and building the cohesion that builds a neighbourhood rather than just assets.”
Mok’s comments come on the heels of a federal announcement last month that expands eligibility for 30-year mortgages for first-time homebuyers and all buyers of new builds – something she believes is a stopgap solution when the system needs a complete overhaul.
“The Canadian housing market has reached a crisis point in the past five to 10 years as house prices have gone beyond reach,” Mok said in a news release and echoed during an interview.
While longer mortgage terms can make ownership more affordable in the short-term, Mok feels they may also put households at a higher risk over a longer period of time – with fluctuating interest rates in particular.
As such, she feels it’s time for people to reconsider whether they want to own a home at all.
Ownership is often viewed as a financial move, “an instrument to gain financial wealth,” Mok said, acknowledging it can come with a sense of financial security and provide a way to pass wealth on to the next generation.
However, for those who are financially able, there are other ways to accomplish those things.
“We can look at the social benefits that don't just exist in owned properties, but in other forms of occupancy, such as rentals,” she said, using the stability of having a bricks and mortar home as an example. “(Those social benefits are) what makes our society stronger and more together and more cohesive as a society rather than just looking at the capital gains in terms of dollar signs.”
