Canadians feel owning a home out of reach: poll

A large majority of Canadians who do not own property believe homeownership is currently unachievable, according to a recent poll conducted by CIBC.

Even though 56 of nonowners aspire to one day have their own home, the survey found 76 per cent of them feel that goal is out of reach.

The survey highlights key obstacles hindering prospective buyers, with 70 per cent citing overpriced markets and 63 per cent pointing to the inability to save for a down payment as major barriers.

Additionally, only 28 per cent of non-owners are currently setting aside funds to buy.

“Housing affordability is a challenge across the country and many Canadians could use guidance on how to make their homeownership dream a reality,” CIBC’S vice-president of financial planning and advice, Carissa Lucreziano, said in the report. “About 80 per cent of those we surveyed said they need advice to help them navigate the market.”

MOST HAVE NOT GIVEN UP ON THE IDEA OF HOMEOWNERSHIP.

The survey also revealed that 55 per cent of nonowners believe they will only be able to afford a new home with an inheritance or gift from family. Additionally, 48 per cent are contemplating moving outside major cities to stretch their housing budget, while 26 per cent are open to the idea of purchasing a home with friends to make homeownership more feasible.

Although the CIBC poll does not directly address the effect of elevated interest rates on the housing market entry, they are clearly a factor in the lack of affordability.

A recent survey by Royal Lepage found that 56 per cent of those actively engaged in the housing market had to postpone their purchase plans due to rising interest rates.

Fifty-one per cent of sidelined homebuyers, however, plan to resume their search if interest rates are cut while 12 per cent might re-enter the market even if rates remain unchanged.

Nevertheless, 20 per cent of sidelined buyers have decided to abandon their plans to purchase a home altogether.

Still, the surveys indicate that most have not given up on the idea of homeownership.

“Of those who have postponed their home buying plans due to rising interest rates, 65 per cent remain engaged in the home buying process,” Royal Lepage said in its survey report.