Canadians still want to buy homes — they just don’t think they can afford to

A sizeable share of Canadians who want to buy a home still don’t believe they can make the numbers work.

A new consumer sentiment report from personal financing company NerdWallet Canada found that more than one-third of non-homeowners want to purchase a home within the next year but expect to remain renters or continue living with relatives instead. 

At the same time, 55 per cent said they have no plans to buy at all, according to the report, based on an Angus Reid survey of 1,501 Canadians.

The findings suggest that high living costs, down payment hurdles and mortgage affordability remain far more significant barriers to homeownership than concerns about economic uncertainty, job security or trade tensions.

High expenses remain top barrier 

Nearly one-quarter of Canadians surveyed, or 23 per cent, said high or unpredictable living costs were preventing them from moving in the next 12 months. Another 18 per cent said they could not afford a down payment, while 17 per cent cited other financial priorities.

Waiting for home prices to fall and mortgage rates to decline were also commonly cited obstacles, at 16 per cent and 15 per cent, respectively.

By comparison, concerns tied to economic uncertainty ranked lower. Eleven per cent of respondents cited worries about a recession, while eight per cent pointed to job security and six per cent said uncertainty related to the trade dispute with the United States was holding them back.

Canadians say they’re skeptical about the future

Negative sentiment toward Canada’s housing market remains widespread.

The report found 88 per cent of Canadians believe homes are overpriced, while 69 per cent said the market is unfair to first-time buyers. Another 68 per cent agreed that the market is too focused on housing as an investment.

Views varied by age. Among Canadians aged 18 to 34, 63 per cent said homeownership feels out of reach, compared with 31 per cent of those aged 55 and older.

Just 14 per cent of respondents said the housing market is functioning as it should.

Mixed views of real estate agents

Canadians expressed a range of opinions about the value real estate agents provide during the home-buying process.

Eighteen per cent said agents provide a lot of value, while 41 per cent said they provide some value. Another 28 per cent said agents offer limited value, and six per cent said they provide no value at all.

Homeownership comes with challenges

The survey also found homeownership is not without regrets.

More than four in 10 homeowners, or 42 per cent, said they have experienced some form of regret related to owning a home. The most common concerns involved maintenance demands that were greater than expected, cited by 16 per cent of respondents, and rising non-mortgage housing costs, cited by 13 per cent.

Fewer homeowners pointed to mortgage renewals, declining property values or overpaying for their home as sources of regret.

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