- More respondents plan to buy in the next two years and
believe it's a good investment
- 50% are saving less to buy a home due to
inflation
- 57% would need a side hustle or second job to afford a
home
- 58% are worried about covering the costs of home
ownership (66% among next-time home buyers)
TORONTO, April 23,
2024 /CNW/ - Despite affordability challenges and
inflation continuing to impact how and when Canadians buy a home,
confidence in making the move to purchase a home is rising.
According to RBC's 30th annual Home Ownership Poll, conducted among
Canadians under the age of 65, 60% believe owning a house or condo
is a good investment (up from 53% in 2023) and 29% are looking to
buy in the next two years (up from 22% in 2023). Two-thirds (64%)
say they have always dreamed of owning a home.
At the same time, the research found that half (50%) of
Canadians say inflation is eroding their ability to save for a
home. This challenge is acutely felt among those planning to
purchase a home within the next two years. Among these potential
buyers, there has been a 37% decrease in the total amount they have
saved to put towards buying a home. Among those who have saved some
amount, 36% say they aren't putting aside money every month for a
home purchase (up from 8% in 2023). Even with this setback, 41% of
overall potential home buyers say it will take them four years or
less to save enough for a down payment.
"Canadians have a lot of headwinds to face as they look to
purchase a home today, whether they are a first-time buyer or
searching for their next home," says Janet
Boyle, senior vice president, Home Equity Finance &
Newcomer Strategy, RBC. "While affordability anxiety remains, our
research found that many home buyers are exploring different
approaches to realize their dream of home ownership."
Canadians explore various strategies to cover the cost of
home ownership
Despite it being harder to save for a home,
potential buyers are searching for additional ways to supplement
their savings. The majority (57%) say they would need a side
hustle or second job and more than a quarter (27%) have had to or
would have to live with their parents longer to afford a home.
Almost half (45%) also say they would need to overhaul their
spending and saving habits to buy a home.
Family also continues to play a big role, with 62% saying
financial support from family is necessary to buy a home and 19%
saying they have or will need to buy a home with their
family/parents. But support from family might not always be
available with 39% of respondents saying they want to give family
members money for housing or rent, yet can't afford to do so. The
majority (54%) also say they would prefer to have their
child/family live with them to help them save money rather than
provide financial support.
Mounting costs and inflation putting pressure on next-time
home buyers
Two-thirds (66%) of next-time home buyers (i.e.
those who currently own a home and are likely to buy again in the
next two years) are concerned about covering the costs of home
ownership. Additionally, half (51%) of next-time home buyers say
they are worried about their ability to buy their next home due to
inflation.
The research also found that three-quarters of next-time home
buyers (76%) believe the housing market in their community is
overpriced. Two-thirds (64%) say they wouldn't be able to purchase
their first home in today's market and the same proportion (64%)
believe they would need to move out of the city they are currently
living in if they wanted to buy a larger home.
Newcomers are eager to buy in the near future
Among
newcomers who arrived in Canada in
the past five years, 73% say they have always dreamed of owning a
home and 65% say they are likely to purchase one in the next two
years (compared to 29% nationally). The majority also believe there
is only a small window of time to take advantage of lower house
prices (56%).
"Whether it's your first or next home, with so many decisions to
make it's easy to feel overwhelmed when thinking about buying a
home," adds Boyle. "Whether in person or online, getting expert
advice and having conversations early can help take a lot of the
unknowns and stress out of the home buying process. Having a
financial expert on your side who has a full picture of your
finances can also help you build a home buying plan that aligns
with your finances, goals and lifestyle."
RBC resources to help home buyers at every step:
- RBC True House Affordability Tool: See how much home you may be
able to afford and learn about different mortgage options.
- RBC Home Value Estimator: See what your current home may be
worth today.
- My Money Matters: Whether you
are looking to buy your first home, second home, or even an
investment property, you can find answers to all your mortgage
financing and refinancing questions and helpful resources through
RBC's new online resource hub.
- Houseful, an RBC Company: From finding a home to financing one,
Canadians can simplify their home buying experience with everything
they need in one place. Get access to customized home searches,
local real estate agents, affordability tools, RBC mortgage
specialists and financing under one roof.
2024 RBC Home Ownership Poll
RESPONSE
|
CAN
|
BC
|
AB
|
SK /
MB
|
ON
|
QC
|
AC
|
NTHB
|
Newcomers
|
% Agree – Base: All
Respondents
|
Always dreamed of
owning a
home
|
64 %
|
64 %
|
54 %
|
66 %
|
66 %
|
64 %
|
65 %
|
66 %
|
73 %
|
Rising inflation is
causing me to
save less for buying a home
|
50 %
|
51 %
|
51 %
|
58 %
|
50 %
|
51 %
|
44 %
|
64 %
|
68 %
|
Would need a side
hustle or
second job to afford a home
|
57 %
|
62 %
|
58 %
|
62 %
|
60 %
|
47 %
|
53 %
|
51 %
|
75 %
|
Have/will need to live
with my
parents longer to save enough
to buy a home
|
27 %
|
32 %
|
25 %
|
30 %
|
31 %
|
20 %
|
19 %
|
30 %
|
46 %
|
Would need to overhaul
my
spending and saving habits to
buy a home
|
45 %
|
52 %
|
43 %
|
50 %
|
45 %
|
38 %
|
48 %
|
51 %
|
49 %
|
Financial support from
family is
necessary to buy a home
nowadays
|
62 %
|
67 %
|
64 %
|
58 %
|
68 %
|
51 %
|
56 %
|
64 %
|
69 %
|
Have/will buy a home
with my
family/parents (co-ownership)
|
19 %
|
23 %
|
13 %
|
20 %
|
22 %
|
14 %
|
13 %
|
33 %
|
41 %
|
Prefer to help my
family/child
save money by letting them live
with me rather than help them
directly financially
|
54 %
|
51 %
|
53 %
|
55 %
|
58 %
|
51 %
|
51 %
|
64 %
|
61 %
|
We only have
a small window of
time to take advantage of lower
house prices
|
34 %
|
36 %
|
32 %
|
36 %
|
39 %
|
26 %
|
36 %
|
50 %
|
56 %
|
Housing market in
my
community is overpriced
|
77 %
|
85 %
|
65 %
|
76 %
|
79 %
|
73 %
|
82 %
|
76 %
|
72 %
|
% Selected – Base:
All Respondents
|
Buying a house or condo
is a
good investment
|
60 %
|
67 %
|
60 %
|
59 %
|
62 %
|
50 %
|
59 %
|
79 %
|
79 %
|
Likely to buy in the
next two
years
|
29 %
|
31 %
|
31 %
|
31 %
|
30 %
|
27 %
|
21 %
|
100 %
|
65 %
|
In terms of inflation,
concerned
about covering the costs of
home ownership
|
58 %
|
60 %
|
61 %
|
65 %
|
63 %
|
43 %
|
60 %
|
66 %
|
76 %
|
In terms of inflation,
concerned
about my ability to buy a home
|
44 %
|
52 %
|
40 %
|
41 %
|
47 %
|
36 %
|
39 %
|
51 %
|
71 %
|
Would give family
members
money for housing or rent, but
can't afford to do so
|
39 %
|
40 %
|
40 %
|
32 %
|
39 %
|
42 %
|
39 %
|
30 %
|
40 %
|
% "Agree" – Base:
Homeowners
|
While I already own a
home, I
don't believe I would be able to
purchase my first home in
today's market
|
69 %
|
75 %
|
64 %
|
63 %
|
72 %
|
65 %
|
76 %
|
64 %
|
54 %
|
If I want to own a
home/larger
home, I likely will have to move
out of the city I'm living in now
|
51 %
|
67 %
|
44 %
|
43 %
|
56 %
|
43 %
|
47 %
|
64 %
|
57 %
|
*NTHB - next-time home buyers (i.e. those who
currently own a home and are likely to buy again in the next two
years)
|
About the Survey
An online survey of 2,824 Canadians
aged 18 to 64 was completed between January
25 and February 23, 2024, using Leger's online panel. No
margin of error can be associated with a web panel. For comparative
purposes, a probability sample of 2,824 respondents would have a
margin of error of ±1.8%, 19 times out of 20.
Disclaimer
This news release is intended as general
information only and is not to be relied upon as constituting
legal, financial or other professional advice. A professional
advisor should be consulted regarding your specific situation. The
information presented is believed to be factual and up-to-date but
we do not guarantee its accuracy and it should not be regarded as a
complete analysis of the subjects discussed. All expressions of
opinion reflect the judgment of the authors as of the date of
publication and are subject to change. No endorsement of any third
parties or their advice, opinions, information, products or
services is expressly given or implied by Royal Bank of
Canada or any of its
affiliates.
About RBC
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approach to delivering leading performance. Our success comes from
the 94,000+ employees who leverage their imaginations and insights
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SOURCE RBC Royal Bank