Affordability gains are still not enough to prompt immediate buying
A growing number of Canadian renters are holding off on homeownership, hoping for further declines in property prices before they make a move, according to new survey data from Royal LePage.
The Royal LePage survey, conducted by Burson in early June 2025, found that 40% of renters who considered buying before signing or renewing their current lease said they are specifically waiting for property prices to fall. Another 29% are holding out for interest rates to drop further, while 28% reported that they are continuing to rent so they can save for a sufficient down payment.
“We continue to see that many tenants are motivated to get a foot on the property ladder,” Royal LePage chief Phil Soper said. “In Canada’s least affordable cities, entry-level opportunities have improved significantly, with home prices off last year’s peaks, incomes up and borrowing costs trending lower. Still, many renters—including the 40% who told us they’re holding out for further price declines—are choosing to wait.”
Rental affordability, meanwhile, has improved somewhat in recent months. According to the National Rent Report by Rentals.ca and Urbanation Inc., average national rent for a one-bedroom unit declined 3.6% year over year to $1,857 in May 2025, while two-bedroom rents fell 4.6% to $2,225.
The survey, which polled 1,854 Canadian renters in major cities and provinces nationwide, revealed that more than half (54%) of renters plan to buy a home in the future. Sixteen percent expect to buy within the next two years, and 21% plan to do so within two to five years.
However, nearly a third of renters (31%) say they have no plans to purchase a home. Among this group, 53% believe their income won’t enable them to buy in their preferred neighborhood, 40% say renting is more affordable, and another 40% simply do not want the responsibilities associated with homeownership.
“History suggests they may be disappointed,” Soper added. “Over the past 75 years, Canadian home values have risen approximately five per cent annually, running consistently ahead of inflation. The window of opportunity may be narrower than it appears, and strategic buyers are beginning to move.”
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Renters in Saskatchewan and Manitoba are among the most hesitant to transition into homeownership. In 2024, 44% of renters in those provinces considered buying, but that figure dropped to 28% this year, with 48% now saying they’re waiting for prices to fall.
“There’s definitely uncertainty, I think in the economy, tariff implications,” said Anthony Bertrand, a Royal LePage realtor in Winnipeg.
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