The majority of Canadians view their home as being part of their investment strategy, but recent declines in prices have some reconsidering that approach. 

Those are the findings of the latest survey from BNN Bloomberg and RATESDOTCA, which was conducted by Leger in early November. The survey asked 984 Canadians how their home factored into their investment strategy. 

It found that 60 per cent of respondents viewed their home as playing a role in their investment portfolio. Young people were far more likely than their older cohort to feel that way — 72 per cent for those age 18 to 34, versus 57 per cent for those 35 and older.

Only 24 per cent of respondents said their home is not a part of their investment strategy, with a similar divide between younger and older homeowners. 

But attitudes about homes making good long-term investments may be shifting — at least for now.

Eleven per cent of respondents said that with the recent change in the housing market, they no longer view their home as a good long-term investment. Another 23 per cent said their perception has weakened. 

The shifts come as housing prices in most markets across Canada have been experiencing a multi-year price decline, which began after home prices peaked in February 2022. Data from the Canadian Real Estate Association show that Canadian home prices fell 13.2 per cent last year, the biggest drop since it began keeping data in 2005. 

That decline was driven by the Bank of Canada embarking on a rapid increase in its benchmark interest rate to try and tame inflation. 

While rates for five year-fixed mortgages fell below two per cent in 2021, the central bank rate hikes have increased mortgage rates to between five and six per cent. For those with variable-rate mortgages, this has meant a massive increase in monthly payments. A RATESDOTCA report earlier this year found that a variable-rate holder who took out a $500,000 mortgage in July 2021 paid $23,579 more in interest as of September of this year versus if they had taken a fixed rate mortgage. 

But while home price declines have made headlines across Canada, the November survey found many Canadians still view their homes as good long-term investments.

Forty-three per cent of Canadians said they viewed their home as a good long-term investment when they bought it, and despite the recent price declines, they feel that perception is even stronger now. 

BNN Bloomberg has teamed up with RATESDOTCA to take the pulse of Canadians every month on key pocketbook issues. This is the latest instalment in monthly special coverage.