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Survey Reveals Land Lease Homeownership is the Housing Market’s Best-kept Secret

COLLINGWOOD, December 17, 2019 – Sixty-five per cent of Ontarians have not heard about land lease homeownership, an alternative form of housing that bridges the gap between rental housing and freehold home ownership, a recent survey shows.

Land lease is a form of home ownership in which buyers purchase their homes outright but lease the land on which the homes sit. That makes land lease homes typically more affordable to purchase than traditional freehold homes. It is popular in other countries, such as Norway, the United Kingdom, Australia and the southern United States.

“Land lease homeownership is the housing market’s best-kept secret,” says Katherine Gyles, Executive VP of Corporate Strategy and Talent at Parkbridge Communities. “Because you don’t buy the land, the home is typically less expensive to purchase and mortgage costs are lower.

“It’s a great housing solution for retirees looking to downsize and for young families looking to get into the housing market. It can allow homeowners to maintain and build equity while freeing up money for life’s other priorities.”

Land lease communities are usually located close to smaller urban centres. The homes can range from townhomes to single family dwellings, and from traditionally built to manufactured. In the current environment where the affordability of purchasing a home is challenging for many prospective homebuyers, land lease homeownership is a more attainable option that is attractive for other reasons as well.

“Land lease communities are professionally managed and often come with quality amenities that are within walking distance for homeowners,” says Gyles. “In addition, homeowners are living with like-minded people where social clubs and activities are frequently organized within the community. This promotes a real sense of community, where people feel supported and connected.”

The survey also found that people approaching retirement, aged 55 and over, were the most aware of land lease home ownership (32%), while the age group of 18-34 was least likely to be aware of land lease (72%). After the concept of land lease was explained, the most likely people to consider it were those aged 18-31 (40%) and those located in the 905 region (30%).

About the survey: The online survey was conducted by the market research firm Maru/Blue. It surveyed 814 randomly selected Ontario residents and has an estimated margin of error of +/- 3.4%, 19 times out of 20. The results have been weighted by education, age, gender and region to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Ontario. Discrepancies in or between totals are due to rounding.

About Parkbridge: Parkbridge is Canada’s leading developer and owner-operator of more than 100 residential and recreational communities across the country. We have been providing vibrant and affordable communities for retirees, families and guests since 1998. Parkbridge is a proudly Canadian company, owned by an institutional investor based in British Columbia, and we employ more than 500 people year-round and another 700 seasonally. Parkbridge is where community lives.