High costs, not economic anxiety, are blocking Canadian homebuyers, new NerdWallet research reveals
Most Canadians believe homes are overpriced and the market is failing first-time buyers, and a new survey suggests the barrier is financial, not emotional.
NerdWallet Canada, working with Angus Reid, polled 1,501 Canadian adults between May 26 and 29, to measure housing market sentiment. The results showed that 88% of respondents said homes are overpriced, 69% said the market is unfair to first-time buyers, and just 14% said it is functioning as it should.
Over half of non-homeowners (55%) said they have no intention of buying in the next 12 months, with only 6% planning to purchase a first home in that window. Among those who want to buy but expect to remain renters or live with family, the constraint is consistent — cost.
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Affordability, not anxiety, blocks buyers
When asked what is preventing a move in the next 12 months, 23% of Canadians cited high or unpredictable living costs, 18% said they cannot afford a down payment, and 17% pointed to other financial priorities. Mortgage rates were cited by 15%.
By comparison, concerns tied to economic uncertainty ranked far lower. Trade tensions with the United States deterred just 6% of respondents, while job security worries were cited by 8% and recession fears by 11%.
The distinction between systemic cost barriers and short-term sentiment is one brokers are already fielding firsthand.
"There's a lot of buyers sitting on the sidelines right now," Mike Kazarian, broker owner at Lenders' Choice Mortgages in the Greater Toronto Area, told Canadian Mortgage Professional earlier this year. "I think the market is going to pick up."
Non-homeowning women (62%) were more likely than men (47%) to report no interest in buying in the next year. Quebec led by province, with 68% of non-owners saying the same, followed by Saskatchewan and Manitoba at 54% and Ontario at 52%.
Read more: Some Toronto buyers might be warming up – but affordability still bites
Homeownership regrets are widespread
The survey also found that ownership is no guarantee of satisfaction. More than four-in-ten homeowners (42%) reported at least one regret. The most common were home maintenance demands that exceeded expectations (16%) and non-mortgage costs that had climbed too high (13%).
Regret over higher-than-anticipated renewal costs was cited by 7%, while a similar share said they overpaid for their home.
The results add texture to what first-time buyers are facing in Canada's 2026 housing market, a market where the entry cost and the carrying cost are both working against them.
Read more: Younger Canadians' housing prospects worsen amid bleak job outlook
There are measured reasons for optimism. An RBC executive who spoke with CMP in May noted that she remains cautiously optimistic about the second half of 2026. "I think buyers and homeowners are very resilient," she said. "I think Canadians are very resilient."
For brokers, the NerdWallet data reinforce a practical reality: clients are not waiting for confidence to return, they are waiting for costs to come down. That is a conversation about products, programmes, and planning.
Those monitoring Canada's mortgage affordability outlook for 2026 will find no shortage of demand in the pipeline, but clearing it will require more than a sentiment shift.
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