More Canadians than ever can't afford to buy a home. But is owning always better than renting?With housing prices rising at a significantly faster pace than wages, home ownership has become increasingly unaffordable for Canadians. 

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Many 20-somethings don't see home ownership in their future

Nojoud Al Mallees · CBC News(Javan Wang)

The couple is hoping to buy a home in six or seven years. However, if prices continue to rise, that timeline will likely be pushed back further, Wang said. 

Both raised by single mothers, Wang and Skira are surprised to find themselves in this situation while earning more money than they'd ever seen coming into their homes while growing up. 

"I grew up in a semi-detached home," Skira said.

"There's no way we could even afford anything close to something of that size these days."

• Priced OutA landlord hiked rents again and again. Canada's housing agency rewarded him every time

For Wang, owning a home gives an extra sense of security that renters don't have when dealing with a landlord who might choose to sell the home or be difficult with repairs. 

"It's just kind of the North American dream," he said.

"You're kind of raised on this idea that you have a yard of your own."

Right decision depends on stage in life, says real estate prof

Murtaza Haider, a professor of real estate management and the director of the Urban Institute at Ryerson University in Toronto, said renting and buying can each make sense at different points in life. 

For those who are in their 20s or early 30s, renting might be a better option because it provides flexibility.

"When you're young, I would say that the better option is to rent until such time that you know that you are here for five to 10 years, and that's where you invest in ownership," Haider said.

WATCH | Breaking down renting versus owning a home: 

Why renting may be financially savvier than buying a home

3 days agoDuration 0:55The average home price jumped 20 per cent in the last year, leaving many Canadians having to contend with long-term renting.(James Dunne/CBC)

Haider said data shows higher wealth accumulation among homeowners than renters, and while not all of that wealth accumulation is due to home ownership, part of it relates to building equity through "forced savings."

"Your monthly mortgage is a forced savings program," he said. 

Haider said young people might be overly pessimistic about their home ownership prospects. More realistic goals, such as considering condos instead of single-family homes and moving outside the city and commuting in, he said, might be more appropriate.  

Questioning the home ownership orthodoxy

Ben Felix, a portfolio manager and the head of research at wealth management firm PWL Capital, has a different perspective on the rent-versus-own debate. 

"There's not a clear choice," he said.

Felix, who has a YouTube channel and gets into personal finance topics, including this very issue, said people often dismiss renting as "throwing your money away." 

However, home ownership has unrecoverable costs as well, he said. 

The portfolio manager uses what he calls the "five per cent rule" to compare renting and owning. He said if the cost to rent a home annually is five per cent of the price to buy it, then the two choices are financially comparable. 

WATCH | Ben Felix explains how he estimates real estate returns: 

How this portfolio manager estimates returns on real estate

3 days agoDuration 1:25Ben Felix says people shouldn't assume Canadian housing prices will continue on the same trajectory they've been on for the last 20 years when making investment decisions. (Photo credit: Ben Felix)A landlord hiked rents again and again. Canada's housing agency rewarded him every time

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