- 36% of non-homeowners under 40 have given up on the dream of owning a home
- 62% of Canadians say most people will be priced out of the housing market in the next decade
- 60% of Canadians likely to buy in the next two years are saving
$789 /month on average
"The road to home ownership isn't always easy and the last year has created both challenges and opportunities for home buyers," said
When it comes to purchase intention, despite 54% of Canadians polled saying it is a sellers' market (up from 41% last year, highest since 2009), there is a large increase in Canadians who are considering buying a home in the next two years (30%, up 8% from 2020). This rises to 49% for those respondents under 40 years of age and 66% for new Canadians who have been in the country less than five years.
Many factors are on the minds of Canadians when thinking about whether to buy now or buy later. According to the poll results, interest rates and concerns that homes will become less affordable are key reasons why many Canadians are considering buying sooner. In fact, 41% of Canadians surveyed are thinking about buying a home sooner because of low interest rates and 61% believe home values will only go up in the immediate future. Four-in-five Canadians also continue to see housing as a good investment (83%) and the majority say it is better to buy than rent (56%). The key drivers among those waiting to buy a home include uncertainty about the economy (56%, up from 40%), a belief that prices may come down (41%), affordability issues (35%) and job anxiety (30%).
"Historically low mortgage rates and continued economic uncertainty have created a lot of unknowns for home buyers," says Sahasrabudhe. "As we continue into year two of the pandemic, knowing how much flexibility you have in your finances has never been more important. In addition to evaluating what you can afford now, potential home buyers should put their finances through a stress test to see if they can continue to carry the cost of owning a home if interest rates increase or if they had an unexpected expense or income loss."
Saving and Budgeting for a Home
While 60% of Canadians surveyed say they would not put themselves in a situation where they become "house poor"*, it might be easier said than done, especially in
When considering a down payment, almost nine-in-10 respondents who are likely to buy in the next two years have some money saved for a home purchase (86%), with
"Building up a down payment can often be the biggest barrier to buying a home, especially as prices continue to climb in the pandemic environment," says Sahasrabudhe. "While everyone's financial situation is different, many Canadians have been taking advantage of reduced spending over the year to build up their savings and get closer to making their dream of owning a home a reality."
Sahasrabudhe adds that no matter when or where you are planning to buy, having access to the right information, resources and support can help you make the best choices for your financial situation and housing needs.
RBC has a number of digital tools and resources available to help Canadians through every stage of the home buying process:
RBC Mortgage Specialists are available to help support Canadians in their home buying journey when and where they need it, whether in branch, by phone or virtually.- RBC True House Affordability tool provides a personalized estimate on how much potential home buyers may be able to afford.
- RBC Homebuyer Advantage provides step-by-step guides, tools, calculators and special offers to help Canadians through every step of the home buying experience.
- RBC Neighbourhood Explorer can help you quickly narrow down your search to find the best areas to live that are most suited to your lifestyle.
- For home buyers and sellers in select major Canadian markets, OJO.ca (in collaboration with
OJO Labs ) allows home buyers to simplify their home-search process, enjoy personalized property insights, work directly with a dedicated concierge and be connected with local agents and RBC mortgage professionals.
National and Regional Data Tables
Question | Total | B.C. | SK/MB | ||||
Non-homeowners under 40: I have given up on the dream of home ownership. (Strongly/Somewhat Agree) | 36% | 41% | 39% | 27% | N/A | ||
I believe that the majority of Canadians will be priced out of the housing market in the next decade. (Strongly/Somewhat Agree) | 62% | 71% | 65% | 53% | 71% | 43% | 63% |
Likely to buy a home in the next two years: Are you putting aside money monthly to save for a new home purchase? | 60% | 60% | 54% | 70% | N/A | ||
Likely to buy a home in the next two years: On average, how much money do you put aside every month to save for a new home purchase? |
| N/A | |||||
I have been able to save more money during the pandemic than I was able to beforehand. (Strongly/Somewhat Agree) | 44% | 45% | 40% | 43% | 44% | 48% | 40% |
I believe that we are currently in a sellers' market | 54% | 62% | 13% | 35% | 64% | 59% | 50% |
How likely are you to purchase a home, or another home, within the next two years? (Very/Somewhat Likely) | 30% | 24% | 33% | 26% | 28% | 36% | 27% |
I am thinking about buying a home sooner because of lower interest rates (Strongly Agree/Somewhat Agree) | 41% | 39% | 46% | 36% | 35% | 52% | 32% |
I believe that home values will only go up in the immediate future (Strongly Agree/Somewhat Agree) | 61% | 72% | 48% | 58% | 70% | 51% | 53% |
I feel that housing is a very good/good investment. | 83% | 83% | 81% | 86% | 83% | 84% | 82% |
I think it makes more sense to buy than to rent right now (Strongly Agree/Somewhat Agree) | 56% | 56% | 57% | 59% | 53% | 57% | 55% |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to economic insecurity. | 56% | 56% | 59% | N/A | 63% | 47% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to housing prices coming down | 41% | 45% | 31% | N/A | 42% | 44% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to affordability issues | 35% | 43% | 27% | N/A | 44% | 19% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to job anxiety | 30% | 27% | 35% | N/A | 35% | 23% | N/A |
I would not put myself in the position of being house poor | 60% | 58% | 59% | 62% | 58% | 66% | 61% |
Among homeowners: I consider myself to be house poor now | 15% | 11% | 17% | 16% | 16% | 14% | 16% |
Likely to buy a home in the next two years: If I were to purchase a new home, my budget would realistically be < | 48% | 48% | 32% | 67% | N/A | ||
Likely to buy a home in the next two years: Have some money saved for a down payment | 86% | 84% | 85% | 90% | N/A | ||
Likely to buy a home in the next two years: Avg. amount of money saved for down payment |
| N/A | |||||
Likely to buy a home in the next two years: I have less than | 40% | 45% | 36% | 35% | N/A |
*"House poor" is a term that describes a person who over-extends themselves and spends an unusually large proportion of their total income (roughly 30-40% or more) on home ownership, including mortgage payments, property taxes, maintenance and utilities. |
About The Survey
These are some of the findings of an Ipsos poll conducted
About RBC
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SOURCE
© Canada Newswire, source