Canadians Hold onto Dream of Homeownership Despite Housing Affordability Challenges
Despite facing significant hurdles in the housing market, Canadians remain steadfast in their aspirations of homeownership, according to a recent poll conducted by CIBC. The survey reveals that a staggering 76% of non-homeowners feel that entering the housing market is currently out of reach. However, amidst rising prices and economic uncertainties, half of all non-owners (56%) still cling to the dream of owning their own homes one day.
The survey, which included both homeowners and non-homeowners, highlights the main barriers preventing Canadians from achieving their homeownership goals. Overpriced markets and the inability to save for a down payment were cited as the primary obstacles, with 70% and 63% of respondents respectively identifying these challenges.
Carissa Lucreziano, Vice-President of Financial Planning and Advice at CIBC, emphasized the need for guidance in navigating the complex housing market. “About 80 per cent of those we surveyed said they need advice to help them navigate the market.” she stated. “Working with a trusted advisor can provide a realistic pathway to homeownership through customized planning and recommendations.”
While many Canadians are struggling to enter the housing market independently, the survey also revealed a willingness to explore alternative avenues. Approximately 55% of non-owners admitted that they would only be able to afford a new home with an inheritance or gift from their family. Additionally, 48% are considering moving outside major cities to stretch their housing budgets, while 26% would contemplate purchasing a home with friends to afford homeownership.
In terms of current homeowners, the survey found that many are taking proactive measures to manage their mortgage payments. Half of variable rate mortgage holders reported cutting back on everyday expenses, while 21% are making lump sum payments toward their mortgages. Meanwhile, homeowners with fixed-rate mortgages are preparing for potential rate hikes, with 45% planning to cut back on daily expenses and 34% intending to shop around for the best rates as their mortgages come up for renewal in the next two years.
Despite the challenges, there remains optimism among Canadians about the prospect of homeownership. The survey underscores the resilience of the Canadian housing market and the determination of individuals to achieve their dreams of owning a home.
Commentary:
The findings of the CIBC poll reflect the current reality of the housing market in the Greater Toronto Area (GTA). With soaring prices and limited inventory, many prospective buyers are feeling discouraged. However, it’s encouraging to see that the dream of homeownership remains alive for a significant portion of Canadians.
It’s clear that there’s a need for comprehensive support and guidance for individuals navigating the complexities of the housing market. Financial institutions, policymakers, and real estate professionals must work together to develop solutions that address the affordability crisis and make homeownership more accessible for all Canadians.
As we move forward, it’s essential to prioritize initiatives that promote affordability, encourage responsible lending practices, and provide resources for first-time homebuyers. By fostering a more inclusive and sustainable housing market, we can ensure that the dream of homeownership remains within reach for future generations.
