RBC poll reveals growing confidence in housing market despite financial challenges
While rising inflation continues to erode savings for many aspiring homebuyers, a new poll suggests Canadians are feeling more confident about entering the housing market.
The RBC Annual Home Ownership Poll found that 60% of Canadians under 65 now believe owning a home is a good investment, up from 53% last year. Additionally, 29% plan to purchase a home within the next two years, a jump from 22% in 2023.
"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," said Janet Boyle, RBC's senior vice president of Home Equity Finance & Newcomer Strategy. "While affordability anxiety remains, our research found that many home buyers are exploring different approaches to realize their dream of home ownership."
The poll revealed that 50% of Canadians feel inflation is hampering their ability to save for a down payment. Among those planning to buy soon, 36% admitted they aren't putting any money aside monthly, up significantly from just 8% last year.
Despite the financial strain, 41% of prospective buyers believe they can save for a down payment within four years or less. Many are looking at supplementing their income, with 57% saying they would need a second job and 27% considering living with parents longer to afford a home purchase.
"Family support is becoming increasingly important, with 62% saying financial help from family is necessary to buy a home," Boyle noted.
The challenges are even more acute for current homeowners looking to upsize. Two-thirds (66%) of "next-time" buyers worry about covering ownership costs, and 51% have concerns over inflation's impact on their ability to purchase their next property.
First-time buyers from overseas appear particularly eager to enter the market, with 65% of recent newcomers to Canada indicating plans to purchase a home within two years compared to 29% nationally.
Read next: Canada's immigration cuts could trigger labour shortages: CIBC
"Whether it's your first or next home, with so many decisions to make, it's easy to feel overwhelmed when thinking about buying a home," Boyle said. "Getting expert advice and having conversations early can help take a lot of the unknowns and stress out of the home buying process."
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