About 70% of Canadians don't want to Own A Home

According to a recent Ipsos survey conducted on April 5, 63% of Canadians who don't own homes have given up on owning a home.

The Canadian housing market has seen significant fluctuations in the past year, with house prices falling and the government implementing measures to address housing affordability. However, according to a recent Ipsos survey conducted on April 5, 63% of Canadians who don't own homes have given up on owning a home, similar to a similar poll conducted a year earlier.

While the survey revealed that 76% of respondents believe that owning a home is the best investment a person can make, nearly 70% of people think home ownership is currently only for the rich. The younger generation, aged 18-34, is more likely to agree that owning a home is a significant achievement, but it's also a privilege reserved for the wealthy.

About 70% of Canadians don't want to Own A Home

Respondents to the survey cited high interest rates as a significant factor keeping them out of the real estate market, with around 71% of those surveyed expressing this sentiment. The recent increase in the Bank of Canada's (BoC) base rate has raised mortgage rates and limited how much Canadians can borrow. While home prices have fallen by 19% from the pandemic peak in February 2022 to the same time this year, this drop was primarily due to the BoC's increase in interest rates.

Canadian Real Estate Association (CREA) has reported that the housing market has cooled off significantly. The BoC approved a pause in conditional rate hikes after raising its policy rate to 4.5% from the lows that triggered a housing price boom in the first two years of the COVID-19 pandemic.

Despite the government's efforts to make housing more affordable and accessible, Canadians who don't own homes are losing interest in owning a home. While owning a home is still considered a good investment by most Canadians, the perception remains that it's an achievement only attainable by the rich. The younger generation is particularly discouraged by high interest rates, which make it challenging to purchase a home.

Overall, these survey results suggest that while the housing market has cooled off, the government needs to do more to address the perception that owning a home is a luxury reserved for the wealthy. The younger generation needs to feel that they can realistically achieve home ownership, and addressing the high-interest rates that are keeping them out of the market could be an excellent place to start.