Building Assets Through Housing

In dozens of cities across Canada, the last few years have seen middle-class homeowners spellbound by the dizzying spectre of escalating prices for homes in their neighbourhoods.  Today, some homeowners find themselves sitting on, or in, substantial wealth – seemingly far beyond the amount they could have accumulated by saving a few dollars every month.  Anecdotal reports of ordinary families with assets worth a million dollars and more have fuelled the perception that the road to riches runs through owning a home.  Is this gravy train real?  And, if so, can lower-income Canadians also hitch a ride?  This paper investigates whether home ownership is a reasonable financial strategy for low-income Canadians to increase their savings; describes current initiatives to assist low-income Canadians to own a home; and assesses the extent to which these initiatives are effective in helping low-income Canadians increase their savings.

This paper was co-sponsored with the Canadian Housing and Renewal Association.