A new Royal LePage survey reveals a strong desire among renters to break into the housing market, despite ongoing affordability challenges. According to the findings, 54% of Canadian renters intend to purchase a home eventually. Of those, 16% aim to buy within the next two years, and 21% plan to do so within five years. The data illustrates how the dream of homeownership remains alive—especially in urban provinces like Ontario.
Nearly a Third Almost Bought Instead of Renewing
The survey also highlights that 28% of renters considered buying a home before renewing their current lease, but ultimately decided to wait. The most common reasons include:
- 40% are hoping for a drop in property prices
- 29% are waiting for lower interest rates
- 28% need more time to save for a down payment
These findings reflect ongoing uncertainty about the market, as Canadians weigh the risks and benefits of entering the real estate sector amid inflation and rate fluctuations.
Rent Still Eats a Large Portion of Income
Renters aren’t just delaying homeownership—they’re also struggling with high housing costs. The survey shows that 52% of Canadian renters spend over 30% of their net income on rent, while 15% pay more than half of their income toward monthly rent. These figures underscore how high rental costs can stall savings efforts and delay a transition to ownership.
Ontario Renters Most Motivated to Buy
In Ontario, 28% of renters considered buying before renewing their leases, and the intention to purchase remains high:
- 55% plan to buy a home in the future
- 15% expect to do so within two years
- 21% plan to buy within five years
That said, 31% of Ontario renters said they have no plans to buy a home, often citing low income, high housing prices, and concerns about maintenance responsibilities.
Why Now Might Be the Right Time
Phil Soper, President and CEO of Royal LePage, emphasized that the current market conditions may favor first-time buyers. He noted,
“Entry-level opportunities have improved significantly, with home prices off last year’s peaks, incomes up, and borrowing costs trending lower.”
This insight aligns with reports of declining rental rates in cities like Toronto, driven by increasing condo supply and reduced international student demand. While ownership remains out of reach for many, shifting conditions could bring it closer than expected for motivated buyers.
Key Takeaways for Prospective Homeowners
- Watch Interest Rates: With nearly a third of renters holding off for lower rates, changes by the Bank of Canada could tip the scales.
- Rents Still Straining Budgets: Over half of renters are financially stretched, reinforcing the urgency to move toward ownership if feasible.
- Saving Remains a Barrier: Down payments are still the biggest hurdle for 28% of hopeful buyers.
- Ontario in Focus: Renters in Ontario are especially eager, making it a key region for affordable housing solutions and new development.
Source:
Financial Post – Canadian renters eager to buy a home: Royal LePage
