How Homeownership Builds Lasting Wealth

The Smartest Long-Term Investment You Can Make

The Canadian housing market moves through different cycles, rising and falling over time. Still, one fact has historically remained consistent: Canadian homeowners have built a lot of equity and long-term wealth, at least in the past 30 years. According to the REMAX Housing Market Drivers Report, home values in major Canadian cities have climbed by as much as 460% since 1994, proving that real estate remains one of the most stable and rewarding investments over time.  

While today’s market conditions are undeniably challenging, particularly for those who are making their first foray into homeownership, REMAX research has consistently revealed that Canadians still value home, both as an investment and lifestyle, and many are even taking more creative paths to achieve homeownership.  

A Proven Track Record for Growth  

Canadians who bought their houses 30 years ago are reaping the benefits of some serious equity gains, although they, too, faced their own challenges when entering the market. As outlined in the REMAX report, every major market analyzed saw steady appreciation in home values despite recessions, interest rate hikes, and policy shifts.  

The proof is in the numbers. Since 1994:  

• Halifax reported the highest price growth of 460%.  

• The Greater Toronto Area followed, with housing values rising 436.2%. 

• Saskatoon rose nearly 378% over the same period.  

These findings reinforce that homeownership remains one of the most significant drivers of long-term wealth among middle-class Canadians. Beyond price appreciation, housing has historically outperformed inflation, providing Canadians with a tangible asset that fosters financial stability and long-term prosperity.  

Equity vs. Rent  

When it comes to deciding whether owning or renting is more beneficial, there’s no right or wrong answer. It really depends on your long-term goals. Owning a home helps build equity over time, while renting offers fewer immediate responsibilities (think downpayment and ongoing expenses, like property tax) but it doesn’t create long-term gains (unless you’re the landlord). 

Simply put, every mortgage payment you make contributes to your financial growth by gradually whittling down your principal loan, and increasing your equity. Think of each payment as a step toward outright ownership of a growing asset that strengthens your overall net worth. 

Rent, on the other hand, is a recurring expense with no long-term return. Homeownership turns those same monthly payments into equity, a form of “forced savings” that grows with every payment. Renters are essentially paying for a place to live without building anything from it; that money goes into someone else’s pocket instead of their own. Meanwhile, homeowners build wealth as property values rise and loans get paid down. Over time, that difference adds up in a big way. Another advantage of homeownership is the flexibility to utilize your home equity later for renovations, retirement, or future investments. It’s an opportunity that renting simply can’t provide. 

Market Resilience Over Time 

Every generation of Canadian homebuyers has faced its share of challenges, from high interest rates to recessions and shifting government policies. But through it all, one thing has remained true: the market has always bounced back, realizing long-term price growth once stability was restored. The REMAX report findings reinforce that, while the market moves in cycles, real estate continues to be one of the most reliable paths to long-term financial security in Canada. 

Intergenerational Wealth  

Owning a home is one of the most impactful ways to transfer wealth and help secure financial stability across generations. As property values appreciate over time, a home purchased today can become an asset for tomorrow, one that can be passed down to future generations. Beyond appreciation, real estate can also generate passive income.  

Families can invest in rental or multi-family properties, which can provide a steady cash flow that helps cover expenses, can be reinvested in more properties, or can be used to support future generations, ultimately helping them achieve financial independence and break the cycle of living from paycheck to paycheck. Over time, these properties can be transferred to heirs through wills, trusts or as direct gifts, ensuring that homeownership continues to benefit families for decades to come. 

Set Yourself up for the Future 

For many Canadians, the idea of buying a home in today’s market can feel daunting. However, thinking long-term and seeing homeownership as a gradual journey rather than an immediate milestone can make it more achievable. A good approach is to start small and think long-term. Whether it’s through buying a condo, exploring rent-to-own options or considering modular or tiny homes, there are creative paths to ownership worth exploring. The numbers behind equity gains continue to show that timing matters less than time in the market, and every step toward ownership is a step toward long-term financial growth.  

If you’re ready to start your homeownership journey, connect with a local REMAX agent. With their expertise and local insight, they can help you navigate today’s market conditions with confidence.