New poll sheds light
As many as 9 in 10 Canadians expressed a belief that co-ownership can help make homeownership accessible, according to a new poll by Abacus Data.
The survey of approximately 2,000 Canadians found that the vast majority (96%) see accessibility as the major problem in ownership.
“Residents of Canada’s most expensive real estate markets in Ontario and BC feel especially excluded, with 90% and 92% of residents respectively classifying housing accessibility as a major/moderate problem,” Abacus said.
Another 76% said that they are unable to save for the necessary 20% down payment. The affordability crunch is evident in the share of Canadians renting their homes or living with family (55%).
Read more: Industry hails Ontario’s latest pro-affordable ownership bill
For the 45% of Canadians who are not yet home owners, 44% said that they intend to buy a home within the next 10 years.
However, “rising home prices make that a challenge,” Abacus said. “The average home price in Canada rose to $816,720 in February – a 20% increase from the previous year. Since February 2020, the average home price has increased by 50% from $542,286.”
A recent poll by Royal Bank of Canada pointed to this steady erosion of affordability as a major factor giving many would-be homeowners some pause.
Only 23% of RBC’s respondents said that they are likely to purchase a home within the next two years, while 60% said that they have some anxieties about further mortgage rate increases this year. Less than half (47%) believe that they can take on the costs of higher borrowing rates, while two in five respondents reported being “financially overwhelmed” by the prospect of a home purchase.
