As rent prices outpace inflation and wages lag, one-in-three (32%) Canadians say saving for a down payment is the biggest barrier keeping them out of the housing market, according to a new survey from CPA Canada and BDO Debt Solutions.
Another 30 per cent of Canadians point to the ongoing cost of mortgage payments as their main obstacle to owning a home, while just 10 per cent of respondents say they prefer the flexibility of renting, said the report.
With 43 per cent of all respondents reporting the high cost of living as their top financial challenge—and another 14 per cent pointing to paying down debt—many Canadians are struggling to manage day-to-day expenses, let alone save for a home, added the survey.
David-Alexandre Brassard
“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” said David-Alexandre Brassard, Chief Economist at CPA Canada. “High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences.”
Nancy Snedden
“The financial impact of the housing market is also evident in the growing reliance on credit and shrinking emergency savings,” said Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions.
“The dream of owning a first home is slipping away for many Canadians. With the cost of living on the rise, saving for a home has become increasingly challenging. It’s concerning that only two per cent of non-homeowners in Canada are able to make their emergency fund a financial priority, while many are relying on credit to cover their expenses.”
The results also reveal a clear generational divide: while three quarters (74%) of Canadians aged 55 and older own their homes, that number drops to 63 per cent for those aged 35 to 54, and just 31 per cent for Canadians aged 18 to 34, noted the report.
Li Zhang
“Homeownership is closely tied to financial stability and wealth accumulation,” said Li Zhang, Financial Literacy Leader at CPA Canada. “This is reflected in the behaviour of Canadians: homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque. Only four per cent of renters report prioritizing lifestyle spending—most are simply struggling to cover the basics.”
The survey found that nearly half of homeowners are focused on savings, compared with just 12 per cent of renters and non-homeowners. In fact, 28 per cent of homeowners say their top financial goal is saving for retirement or long-term investments.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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