Is Canada Becoming a Nation of Renters? What It Means for Peterborough & The Kawarthas

With more rental construction, fewer new ownership properties, and affordability challenges, it’s a fair question to ask. But what does that actually mean, and more importantly, how does it apply to our local market here in Peterborough and the Kawarthas?

What’s Changing Across Canada

Across the country, we’re seeing a noticeable shift. More purpose-built rental housing is being developed, while fewer ownership-focused projects are moving forward. At the same time, many buyers, especially first-time buyers, are taking longer to enter the market. This isn’t because people no longer want to own a home.

It’s because:

• Interest rates have increased borrowing costs
• Home prices remain elevated
• Some new developments simply aren’t viable for builders right now

As a result, more Canadians are renting today than in recent years, and they’re renting for longer.

This Isn’t Just a Big City Story

It’s easy to assume this is only happening in Toronto or Vancouver. But we’re seeing similar patterns locally, just in a different form.

In Peterborough and the Kawarthas:

• Condo development is limited
• Entry-level housing supply is tight
• New construction has not kept pace with demand

That means fewer opportunities for buyers trying to get into the market, especially at more affordable price points.

The Real Issue: Supply Today vs Supply Tomorrow

Here’s the part most people don’t see. The homes available today were planned and started years ago, under very different market conditions.

What’s happening right now is just as important:

• Some new projects are being delayed
• Others are not moving forward at all

This creates a lag effect. Fewer homes being built today means fewer homes available in 2 to 3 years. So while the market may feel more balanced right now, we could be setting up for tighter conditions down the road.

Are We Becoming Like Europe?

In some European countries, renting long-term is the norm, and homeownership rates are lower than in Canada. Canada is not there. Homeownership is still a major goal for most Canadians, and that hasn’t changed. What is changing is timing.

People are:

• Buying later in life
• Renting longer
• Taking more time before entering the market

That’s a meaningful shift, but it’s not the same as abandoning homeownership altogether.

What This Means for Buyers and Sellers

For Buyers
You may have a bit more breathing room in today’s market, but that window may not last forever. Trying to perfectly time the market is difficult, but understanding where supply is headed can help you make a more informed decision.

For Sellers
Even in a more balanced market, long-term supply constraints can support property values. Pricing and positioning are still critical, but the broader supply picture remains an important factor.

Final Thoughts

We’re not becoming a nation of renters overnight.

But we are seeing a shift where:

• Renting lasts longer
• Entry into homeownership takes more time
• Supply challenges are still present beneath the surface

Understanding that bigger picture helps you make better decisions, whether you’re buying, selling, or simply planning ahead.

Thinking About Your Next Move?

If you’d like to talk about how this impacts your situation, your timing, or your goals, feel free to reach out anytime.

Let’s talk when you’re ready.

Tom Sangster, REALTOR®
Royal LePage Frank Real Estate, Brokerage
Making Real Estate Work For You
…in Peterborough & The Kawarthas