By Peter Boys, CAFA
The Financial Coach
In Canada today, rent continually goes up as vacancy rates plummet. As this is happening, all over the country we have a prime real estate asset collecting dust: millions of empty bedrooms. Many of our country’s seniors live in homes too big for their needs. At the same time, many young Canadians are squeezed into apartments that are too expensive. Now, let’s consider a solution: share the living space that’s already built, to people’s mutual benefit.
The concept of home sharing is getting attention in small towns and cities across the country. Home sharing is where the homeowner, usually a senior, offers reduced rent for a room in their home in exchange for small chores and companionship. Toronto fired up such a home sharing pilot project this summer.
Across the country, affordable housing advocates have proposed home sharing as a creative option for communities trying to balance a rapidly aging population and a shortage of affordable, longer-term rental properties. These shared-living programs could help address two of Canada’s most pressing social issues: housing affordability and caring for an ageing population. These programs can provide more space at a reasonable rate for students while allowing them to contribute to the household and allow seniors to remain in their homes rather than facing the growing costs for long-term care or assisted living.
Take Ontario where almost two-thirds of residents are living in homes too big for their needs, leaving five million bedrooms empty. Even in Toronto, where the housing market is especially tight, there are two million empty bedrooms. Most of the people living in too-large homes are seniors.
The most successful home-sharing programs involve a step-by-step process that carefully matches homeowners and tenants, requiring funding for trained facilitators. Many of the new projects are modelling themselves after a non-profit organization in Vermont, now more than 30 years old, where matched candidates meet, have trial stays and, if both agree, sign a clear contract that outlines expectations and rules while they live together.
Despite government commitments at all levels to build affordable housing, creating new units is costly and time-consuming. For many cities and tourist towns, Airbnb has further reduced access to affordable housing options as landlords can profit more from short-term rentals.
This is about more than sharing a house, the goal is to match interested seniors with suitable renters for home sharing. These programs also provide the opportunity for generations to mingle and learn from one another, to improve the health of isolated seniors, while helping young people with affordable rent.
Home sharing certainly won’t solve all of Canada’s housing woes, but advocates say it’s an example of how more solutions should go beyond windows and walls. Home sharing is not for everyone – you have to be flexible, enjoy people and set clear rules from the beginning. Think of this as ride-sharing with a way more interesting journey.