Ownership intentions – Have they shifted in Canadian markets?

A significant proportion of Canadians said that they are still planning to push through with their planned home purchases despite mounting housing affordability challenges, according to a recent survey by finance company NerdWallet.

The poll of 1,012 Canadian adults conducted between January 5 and January 8 found that nearly seven in 10 respondents (67%) consider ownership among their top priorities, while 43% are looking to make their home purchases within the next five years and 5% are intending to do so within the next 12 months.

However, the elevated cost of homeownership in Canada should not be underestimated. As much as 24% of the survey respondents said that they have not yet begun saving up for down payment despite their plans to buy their homes within five years.

Still, 49% indicated a belief that their home-buying ability this year has neither deteriorated nor improved from 2022. Another 13% said that their purchasing power had actually improved.

The optimism was most apparent among the younger generation of prospective home buyers, with 37% of consumers in the 18-34 age range and 36% in the 35-44 range saying that they plan to buy their homes within the next three years.

“Optimistic buyers may have bulked up their savings, paid down their debts, or increased their income — smart, often critical moves to make when doing battle with a housing market as unforgiving as Canada’s,” the survey report said.

“Homeownership may not be a realistic goal for many hopeful buyers, but their time horizons do indicate a practical understanding of the housing market’s current state.”