3 Essential Real Estate Stories for Canadian Professionals
In today's real estate landscape, affordability is reshaping how Canadians buy, sell, and live. According to Press Monitor's tracking of Canadian publications, three stories stand out this week. Here's what you need to know.
1. One-Third of Canadians Now Rent Out Part of Their Home to Afford Ownership
Calgary Herald reports that more than one-third of Canadians say they need to rent out part of their home to afford ownership, up from 25 per cent in 2021, according to a June report from Mortgage Professionals Canada. Toronto homeowner Alexis Levenson, 42, converted her bungalow's basement into a legal rental suite, with the extra income covering nearly two-thirds of her monthly mortgage payment plus property taxes. Realtors in markets such as British Columbia, where 55 per cent of respondents said they would depend on rental income, say buyers increasingly seek homes with suites, while tax experts caution that rental income is taxable and capital gains rules apply.
Why it matters: With home prices still out of reach for many, a growing number of owners are turning to secondary suites to make mortgage payments manageable.
Key detail: A June report from Mortgage Professionals Canada found more than one-third of Canadians need rental income to afford ownership, up from 25% in 2021. Toronto homeowner Alexis Levenson converted her bungalow's basement into a legal suite that covers nearly two-thirds of her monthly mortgage payment and property taxes. Demand is highest in British Columbia, where 55% of respondents rely on rental income.
Source: Calgary Herald (cross-reported by National Post, Montreal Gazette, Ottawa Citizen, Vancouver Sun, Financial Post Magazine, Edmonton Journal)
Next step: For buyers, consider properties with existing suites or potential for conversion. For owners, understand the tax implications—rental income is taxable and can affect the principal residence exemption.
2. Principal Residence Exemption: Conditions You Must Meet
Financial Post Magazine reports that the principal residence exemption to capital gains is only applicable if specific conditions are met. The first condition is that the rental use of the home is secondary to the main use of your home. The second condition is that you haven’t made a major structural change to create a rental unit. You also cannot claim depreciation on your property to be exempt from the capital gains tax.
Why it matters: Many homeowners assume they can rent out part of their home and still claim the full capital gains exemption. That's not always the case.
Key detail: The principal residence exemption only applies if the rental use is secondary to your main use, you haven't made major structural changes to create a rental unit, and you haven't claimed depreciation on the property. CIBC tax expert Jamie Golombek warns that rental income can jeopardize the exemption.
Source: Financial Post Magazine (also covered by National Post)
Next step: Before converting a basement or laneway suite, consult a tax professional to understand the impact on your capital gains exemption.
3. Heron House: A Model for Supported Living in Victoria
Times Colonist reports that the Garth Homer Society is tackling a critical housing gap for adults with developmental and acquired cognitive disabilities through Heron House, a supported independent living residence in Victoria's James Bay neighbourhood. The eight-bedroom heritage home offers around-the-clock staff support so residents like Lisa Newell can live as independently as possible. Since government funding models do not cover housing options like Heron House, the Victoria non-profit relies on donors and community funders to keep the residence available to those who need it.
Why it matters: The Garth Homer Society is addressing a critical housing gap for adults with developmental and cognitive disabilities through Heron House, a supported independent living residence in Victoria's James Bay neighbourhood.
Key detail: The eight-bedroom heritage home offers around-the-clock staff support, allowing residents like Lisa Newell to live as independently as possible. Since government funding doesn't cover such housing, the non-profit relies on donors and community funders.
Source: Times Colonist
Next step: For housing advocates and policymakers, Heron House is a replicable model for inclusive community living.
These stories underscore the importance of media monitoring for real estate professionals. Stay ahead with Press Monitor's print media monitoring. What trends are you tracking in your market?
