A recent study commissioned by a home renovation company suggests that renting may be more financially advantageous than buying a home in Canada, at least in the short to medium term. The research analyzed rental and mortgage costs across 25 major Canadian cities to determine which option would leave residents better off after a decade.

The findings revealed that seven of these cities could provide net savings for renters compared to buyers over a ten-year period. For example, renting a two-bedroom apartment in Mississauga, Ontario, could save residents approximately $13,300 compared to purchasing a similar property. In contrast, Abbotsford, British Columbia, showed a significant potential saving of $118,700 over ten years, averaging nearly $12,000 annually.

On a provincial level, the study indicated that buying a home generally remains the more beneficial choice. Nova Scotia stood out, with homeowners expected to save just over $100,000 over ten years. Prince Edward Island showed smaller savings of about $14,000. However, Ontario was the only province where renting was deemed the more profitable option, with an estimated advantage of $11,500.

Interestingly, the data for Toronto contradicted this trend, as buyers could save around $16,700 compared to renters. Yet, in other Ontario cities surveyed—Brantford, Cambridge, Hamilton, Kitchener, Mississauga, and Ottawa—renters came out ahead.

The study also highlighted several drawbacks of renting. Renters do not build long-term equity, are subject to rent inflation, and miss out on creating a potential retirement nest egg. The report stated, "Ownership often brings a deeper connection to a place. The ability to customize, renovate, and put down roots can foster a stronger sense of belonging and stability that renting rarely matches."

However, it acknowledged that in cities where renting is cheaper, the benefits of liquidity, mobility, and the opportunity to invest savings elsewhere might outweigh the costs of homeownership.

The study's calculations for property purchase prices were based on data from the Canadian Real Estate Association, while rental costs were sourced from the Canada Mortgage and Housing Corporation. Ownership costs included mortgage payments at a 4.25 percent interest rate, property taxes, annual maintenance costs, home insurance, and various fees. Rental costs factored in tenant insurance, annual insurance increases, and rent hikes.