Despite inflation and affordability issues, Canadians feel increasingly confident
Despite ongoing challenges like affordability and inflation affecting the Canadian real estate market, confidence among Canadians in purchasing homes is growing.
The 30th annual RBC Home Ownership Poll reveals that 60 percent of Canadians under the age of 65 view owning a house or condo as a good investment, an increase from 53 percent in 2023.
Additionally, 29 percent are planning to buy a home within the next two years, up from 22 percent last year. A significant 64 percent of respondents have always harboured dreams of home ownership.
However, the poll also highlights that inflation is compromising the ability of half of the Canadians surveyed to save for a home.
This impact is particularly pronounced among those intending to buy within the next two years, with a 37 percent reduction in the total savings they have accumulated for this purpose.
Among those who have managed to save, 36 percent are not setting aside money monthly for a home purchase, a significant increase from 8 percent in 2023. Despite these challenges, 41 percent of potential home buyers believe they can save enough for a down payment in four years or less.
Janet Boyle, senior vice president of Home Equity Finance and Newcomer Strategy at RBC, acknowledges the tough conditions. “Canadians have a lot of headwinds to face as they look to purchase a home today, whether they are a first-time buyer or searching for their next home,” she says.
Despite affordability concerns, the research indicates many are exploring alternative strategies to achieve their homeownership goals.
Potential buyers are looking for additional ways to bolster their savings, with 57 percent indicating the need for a side hustle or second job and 27 percent considering living with their parents longer to save for a home. Nearly half (45 percent) say they need to overhaul their spending and saving habits.
Family support plays a crucial role in the home buying process, with 62 percent saying it is necessary to receive financial support from family to purchase a home.
However, financial constraints also mean that 39 percent of respondents are unable to provide monetary help for housing or rent to family members, even though they wish to.
More than half (54 percent) prefer having their child or family members live with them to help them save money instead of providing direct financial support.
The survey also reflects concerns among next-time home buyers, with 66 percent worried about the costs associated with home ownership and 51 percent concerned about their ability to purchase their next home due to inflation.
A majority (76 percent) believe the housing market in their community is overpriced, and 64 percent say they would not be able to afford their first home in today’s market conditions. Additionally, the same proportion believe they would need to relocate if they wanted to buy a larger home.
Among newcomers to Canada, a high level of eagerness to own homes is evident, with 73 percent of those who arrived in the last five years expressing this dream and 65 percent likely to purchase a home within the next two years.
Boyle emphasizes the importance of getting informed early in the process. “Whether it's your first or next home, with so many decisions to make it's easy to feel overwhelmed when thinking about buying a home,” she explains.
“Whether in person or online, getting expert advice and having conversations early can help take a lot of the unknowns and stress out of the home buying process.”
RBC offers several resources to assist home buyers, including the RBC True House Affordability Tool, the RBC Home Value Estimator, and My Money Matters—a comprehensive online resource hub.
Houseful, an RBC company, further simplifies the home buying experience by providing access to customized home searches, local real estate agents, affordability tools, mortgage specialists, and financing all under one roof.
