Despite affordability challenges and inflation continuing to impact how and when Canadians buy a home, confidence in making the move to purchase a home is rising, according to RBC’s 30th annual Home Ownership Poll which was released on Tuesday.
The poll said 60% believe owning a house or condo is a good investment (up from 53% in 2023) and 29% are looking to buy in the next two years (up from 22% in 2023). Two-thirds (64%) say they have always dreamed of owning a home.
At the same time, the research found that half (50%) of Canadians say inflation is eroding their ability to save for a home. This challenge is acutely felt among those planning to purchase a home within the next two years. Among these potential buyers, there has been a 37% decrease in the total amount they have saved to put towards buying a home. Among those who have saved some amount, 36% say they aren’t putting aside money every month for a home purchase (up from 8% in 2023). Even with this setback, 41% of overall potential home buyers say it will take them four years or less to save enough for a down payment, said the poll.
Janet Boyle
“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,” says Janet Boyle, senior vice president, Home Equity Finance & Newcomer Strategy, RBC. “While affordability anxiety remains, our research found that many home buyers are exploring different approaches to realize their dream of home ownership.”
Other key survey results include:
- Despite it being harder to save for a home, potential buyers are searching for additional ways to supplement their savings. The majority (57%) say they would need a side hustle or second job and more than a quarter (27%) have had to or would have to live with their parents longer to afford a home. Almost half (45%) also say they would need to overhaul their spending and saving habits to buy a home.;
- Family also continues to play a big role, with 62% saying financial support from family is necessary to buy a home and 19% saying they have or will need to buy a home with their family/parents. But support from family might not always be available with 39% of respondents saying they want to give family members money for housing or rent, yet can’t afford to do so. The majority (54%) also say they would prefer to have their child/family live with them to help them save money rather than provide financial support;
- Two-thirds (66%) of next-time home buyers (i.e. those who currently own a home and are likely to buy again in the next two years) are concerned about covering the costs of home ownership. Additionally, half (51%) of next-time home buyers say they are worried about their ability to buy their next home due to inflation;
- The research also found that three-quarters of next-time home buyers (76%) believe the housing market in their community is overpriced. Two-thirds (64%) say they wouldn’t be able to purchase their first home in today’s market and the same proportion (64%) believe they would need to move out of the city they are currently living in if they wanted to buy a larger home;
- Among newcomers who arrived in Canada in the past five years, 73% say they have always dreamed of owning a home and 65% say they are likely to purchase one in the next two years (compared to 29% nationally). The majority also believe there is only a small window of time to take advantage of lower house prices (56%).
2024 RBC Home Ownership Poll
|
RESPONSE |
CAN |
BC |
AB |
SK / |
ON |
QC |
AC |
NTHB |
Newcomers |
|
% Agree – Base: All Respondents |
|||||||||
|
Always dreamed of owning a |
64 % |
64 % |
54 % |
66 % |
66 % |
64 % |
65 % |
66 % |
73 % |
|
Rising inflation is causing me to |
50 % |
51 % |
51 % |
58 % |
50 % |
51 % |
44 % |
64 % |
68 % |
|
Would need a side hustle or |
57 % |
62 % |
58 % |
62 % |
60 % |
47 % |
53 % |
51 % |
75 % |
|
Have/will need to live with my |
27 % |
32 % |
25 % |
30 % |
31 % |
20 % |
19 % |
30 % |
46 % |
|
Would need to overhaul my |
45 % |
52 % |
43 % |
50 % |
45 % |
38 % |
48 % |
51 % |
49 % |
|
Financial support from family is |
62 % |
67 % |
64 % |
58 % |
68 % |
51 % |
56 % |
64 % |
69 % |
|
Have/will buy a home with my |
19 % |
23 % |
13 % |
20 % |
22 % |
14 % |
13 % |
33 % |
41 % |
|
Prefer to help my family/child |
54 % |
51 % |
53 % |
55 % |
58 % |
51 % |
51 % |
64 % |
61 % |
|
We only have a small window of |
34 % |
36 % |
32 % |
36 % |
39 % |
26 % |
36 % |
50 % |
56 % |
|
Housing market in my |
77 % |
85 % |
65 % |
76 % |
79 % |
73 % |
82 % |
76 % |
72 % |
|
% Selected – Base: All Respondents |
|||||||||
|
Buying a house or condo is a |
60 % |
67 % |
60 % |
59 % |
62 % |
50 % |
59 % |
79 % |
79 % |
|
Likely to buy in the next two |
29 % |
31 % |
31 % |
31 % |
30 % |
27 % |
21 % |
100 % |
65 % |
|
In terms of inflation, concerned |
58 % |
60 % |
61 % |
65 % |
63 % |
43 % |
60 % |
66 % |
76 % |
|
In terms of inflation, concerned |
44 % |
52 % |
40 % |
41 % |
47 % |
36 % |
39 % |
51 % |
71 % |
|
Would give family members |
39 % |
40 % |
40 % |
32 % |
39 % |
42 % |
39 % |
30 % |
40 % |
|
% “Agree” – Base: Homeowners |
|||||||||
|
While I already own a home, I |
69 % |
75 % |
64 % |
63 % |
72 % |
65 % |
76 % |
64 % |
54 % |
|
If I want to own a home/larger |
51 % |
67 % |
44 % |
43 % |
56 % |
43 % |
47 % |
64 % |
57 % |
|
*NTHB – next-time home buyers (i.e. those who currently own a home and are likely to buy again in the next two years) |
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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