Homeownership is the Canadian dream.  But who can afford this dream anymore? The cost of houses in Canada has risen sharply, as have mortgage rates. Rising expenses have made budgets tighter. It’s more difficult than ever to purchase and maintain a house, and it shows – homeownership rates in Canada fell from their peak of 69% in 2011 to 65.5% in 2021. The average home in Canada now costs over $676,000.  

Which means those who can’t buy will be renters forever, right? 

Not necessarily. There is a third option – one that, in many ways, is better than either of these traditional living situations. The option? Living in a housing co-operative. 

There are a few different ways to organize them, but often a housing co-op is a collective of individuals who own and manage their housing together. In non-profit housing co-ops, members are people who live in and hold shares in the co-op. The co-op owns the property rather than individuals owning their units outright. This non-profit structure has some key advantages over conventional home ownership: 

1. Affordability  

 The biggest selling point for housing co-ops is affordability. Buying a home can lead to financial strain, with hefty down payments, mortgage commitments, property taxes, and maintenance weighing on household finances.  

In contrast, housing co-ops require a lower initial investment: often, it’s just the purchase of a membership share, which costs about the amount of a damage deposit.  

Housing co-ops tend to be cheaper to live in than even rentals – typically $400-$500 lower than market rates. This is because housing co-ops are eligible for funding like the Co-op Housing Development Program, and is especially true once the co-op’s mortgage is paid off. This model provides a sense of financial security that traditional home ownership may not. 

2. Sharing the costs of ownership 

 As a member of a non-profit housing co-op, you are a co-owner of that property. However, unlike owning a single-family home, the costs of maintenance, repairs, and upgrades are often shared by the co-op.  

At Rainbow Housing Co-op, for example, things like appliances and major renovations are paid for by the co-operative out of the housing fees collected from residents. So, if your furnace breaks down, the cost might not be borne (just) by you. 

Rainbow Housing Co-op has a community garden that members tend together

3. Community and Connection 

 Another advantage of a housing co-op is the sense of community that can develop. In co-ops, people come together not only to share space but also to hold events and get-togethers and to collaborate on projects like community gardens. 

This engagement can lead to deeper connections with neighbours and a greater sense of community. Housing co-ops encourage members to participate in their governance – members can sit on the board of directors and contribute to big decisions about the co-op, or join committees overseeing things like property maintenance or social activities. These mechanisms create connection and community in a way that individual houses or even condos and apartment buildings often don’t. 

4. Flexibility and Stability

Unlike traditional home ownership, which can lock individuals into long-term commitments, housing co-ops come with a flexibility akin to renting. If you want to move out of a housing co-op you can do so without the burden of selling a property. If you cease to be a member, you’ll likely even get the cost of your membership share back. Members may also have the opportunity to move around within the co-op or transition to different roles easily. 

However, because you have an ownership share in the co-op, you also don’t have a landlord who can raise the rent or tell you to move out for their own reasons. (As the Co-operative Housing Federation of Canada’s Executive Director Tim Ross once told us, “democracy is your landlord”).  If you pay your housing fees and live by the rules of the co-op, you can live there indefinitely – no one can take your housing from you.  

In these ways, housing co-ops are the best of both worlds, offering the flexibility of renting and the stability of owning. 

We need more housing co-ops 

See why we love housing co-ops and wish there were more of them? Given all the advantages, it’s a shame this form of housing isn’t more well-known and available. Though Canadians love homeownership, it’s time to rethink our approach to housing. Housing co-ops are a great alternative to consider.  

The upside? We can help you create a housing co-op – and right now there may be funding available to help get one built. Check out our webinars about housing co-ops, and get in touch to pitch us your idea.