Quebecers' opinions toward homeownership shift as they adjust to life post-pandemic
As Quebecers adjust to life after the epidemic and extreme price increases, their attitudes toward the Canadian dream of homeownership are evolving.
The recent annual RBC Homeownership Poll, which was conducted across multiple housing markets in Canada, shows Quebecers' purchase intent has returned to where it was in January 2020, with one-in-five (20%) stating they are likely to buy a home in the next two years, down from 36% in 2021 and 19% in 2020.
As situations return to normal, the urge for additional room may be moving further down the priority list, with more than half of Quebec respondents (56%) stating location is more important than buying a larger home. Only 21% are willing to live further away from amenities in order to afford a larger home. Over a quarter (26%) of Quebec renters feel less temptation to buy now than they did during the pandemic's peak.
RBS Mortgage Specialist, Pascal Berger said, "While there is still a significant amount of activity in the market, our research indicates that the rush of people looking to purchase a home over the last two years has subsided and we're now starting to see a move back to pre-pandemic levels. Between rising costs and the competitiveness of the market, Quebecers may now be taking a step back and setting aside more time to plan and save before making the jump into homeownership."
Stress, overspending, and rising prices are all factors to consider. Nearly two-in-five (38%, the lowest across all regions in Canada covered) respondents in Quebec say that thinking about purchasing or saving for a home as prices rise is causing stress in their relationship, while 45% are worried about having to buy a property further away from family and friends.
Almost a quarter (23%) also believe because of soaring prices, they have or will have to live with their parents longer in order to set aside enough money for a home purchase.
According to the study, more than a third (36%) of Quebecers aim to spend less after the pandemic to save money for a home, while 22% (the lowest regionally) feel they will struggle to meet the cost of owning a home if they revert to pre-pandemic spending habits.
"Buying a home is the largest purchase most people will ever make, so it's natural that it comes with a certain level of stress, especially in today's market," Berger said. "While home buyers can't control market factors, taking the time to create a plan and understand where they are financially can help them feel more in control of the home buying process."
Interest rates, inflation, and home-buying budgets are all on the rise. While half of Quebec respondents (50% lowest regionally) are concerned about interest rates rising in the coming year, a comparable number (51%, highest regionally) believe they and/or their families are well-positioned to weather the storm. One-fifth (19%) of Quebec mortgage holders haven't yet assessed what they could afford if interest rates rise.
When it comes to rising inflation, 44% of Quebec respondents are concerned about its influence on their capacity to buy a home, while 48% (the lowest regionally) are concerned about their ability to meet the costs of homeownership.
The study also discovered that Quebecers' plans to budget and save for a home have increased significantly. Respondents with a budget in mind for a new home believe their budget would be $352,578, up from $298,971 in 2021.
At the same time, individuals who have previously set aside some funds for a home purchase report they now have an average of $125,152 (up from $91,803 in 2021).
