New survey highlights spending priorities in the province
As much as 64% of Ontarians are spending over 30% of their household budgets on housing, according to a new poll by the Ontario Real Estate Association.
Fully 95% of respondents also indicated a belief that life is more expensive today than it was in 2020, while nearly half said that they may have to “make difficult choices” to fulfill their financial obligations.
OREA cited the mounting cost-of-living as the single greatest factor in this trend, which has been further inflamed by deteriorating housing affordability and the Bank of Canada’s massive interest rate hikes this year.
The central bank’s policy rate increases have made buying homes more difficult (37%) or much more (45%) difficult for Ontarians, OREA added. This is despite 69% of non-homeowners in the province saying that they really want to own homes.
“At a time when homeownership rates are on the decline, the desire to own a home is still growing,” said Stacey Evoy, president of OREA. “But these rapid, outsized increases we have been seeing to curb inflation are hurting Ontario’s families – it’s clear Ontarians are feeling the financial pressures of inflation amid an existing housing affordability crisis.”
How should policy-makers respond to these trends?
Tim Hudak, CEO of OREA, stressed that while rising rates might curb market activity, the province still has to contend with the key issue of housing supply shortages.
“The Ford Government’s More Homes Built Faster Act will help bring affordability closer to hand and ensure future generations have a fair shot at getting the keys to their own home,” Hudak said. “But more can still be done, and governments at all levels should be considering policy changes that will help increase both affordability and supply in Ontario’s market, particularly when it comes to providing more immediate relief.”
