Poll: Affordability erosion continues to alter Canadians' ownership plans

Majority of Canadians believe that buying a home is not a good idea

Poll: Affordability erosion continues to alter Canadians' ownership plans

Current market conditions are dramatically changing Canadians’ homeownership plans, according to a recent poll by Canada Life.

The survey found that almost half of Canadians who are currently renting (45%) will either continue doing so indefinitely, or aren’t certain when they will get into homeownership. Those in the 25-29 age bracket are around twice as likely to never purchase a home or continue renting indefinitely compared to those aged 30-49.

More than seven out of 10 respondents (73%) also said that buying a home is not a good idea in the current economic and fiscal environment.

“Canadians are at an investments crossroads. While buying a home can help you build equity that could be valuable to one’s long-term financial plans, renting may provide more peace of mind around affordability, flexibility and lower housing costs which could leave more for savings and investments each month,” said Paul Orlander, executive vice president at Canada Life.

Read more: StatCan: Affordability concerns cut through every demographic

While 79% of respondents said that homeownership is a good investment, 64% said that they believe that new homeowners won’t be able to break into the market unless they have financial support from friends or family.

Of those who have provided financial support for prospective home buyers, almost half said that their savings (43%) or ability to invest (48%) have been reduced. A significant share also said that they will need to adjust their retirement plans (24%) or postpone their renovations (32%).

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