Survey reveals that most people don't believe they can afford to a buy a home this year, or ever
Homeownership in Canada continues to be a dream rather than a reality for millions of people, with prices unaffordable for many.
A new survey by real estate marketplace Zolo reveals that 63% of respondents don’t think they can afford a home in 2022 with 71% worrying that they will never be able to.
While rising interest rates are always watched carefully by would-be homebuyers, it’s not the biggest barrier to buying right now; 57% said that inflation is the main factor impacting their decision to buy compared to 50% for higher rates.
There’s little hope for home prices to do anything different than they have done in recent years with almost 8 in 10 respondents expecting prices to continue higher through this year.
Experts are less certain of the unstoppable train, with BMO senior economist Robert Kavcic saying that prices are being put to the test by the BoC’s action to soften the market.
Provincial variations
Two thirds of people said that house prices in their home city do not align with what they can afford.
However, in some provinces this sentiment is far higher than the national average:
- 79% of British Columbians, where prices have increased 24.2% year-over-year
- 76% of Ontarians, where home prices have increased 25.3% year-over-year
- 53% of Albertans, where home prices have increased 15.5% year-over-year
- 59% of Manitobans, where home prices have increased 14.5% year-over-year
- 63% of New Brunswickers, where home prices have increased 30.7% year-over-year
- 64% of Newfoundlanders, where home prices have increased 5.9% year-over-year
- 59% of Nova Scotians, where home prices have increased 23.3% year-over-year
- 70% of Prince Edward Islanders, where home prices have increased 8.5% year-over-year
- 56% of Saskatchewanians, where home prices have increased 3.8% year-over-year
