Almost half of tenants in Canada have accepted that they'll be renting forever
Given the state of the housing market in most of the country, especially Toronto and Ontario at large, it appears that progressively more Canadians are completely giving up on the dream of ever owning a home, resigning themselves to renting forever.
A new survey has revealed that a whopping 45 per cent of residents nationwide believe they will be tenants "indefinitely" due to the exorbitant price of a home here, which reached record highs this year.
It's surprising that half think they will.
— libre-et-gratuit (@americanadianTO) May 26, 2021
While rent in a city like Toronto keeps getting pricier, it is still a more financially feasible option for the vast majority of people than the whopping $810,000 it now costs for the average Toronto condo or the $1.8 million or so it now costs to buy a single-family home not even in the city proper, but in the GTA at large.
The region has the most overvalued real estate in all of Canada, and hardly anyone makes enough to realistically afford a home here — but prices elsewhere in the country have been similarly on the rise.
According to this recent research conducted by insurance firm Canada Life, Canadians are recognizing that investing in real estate is a prudent decision (79 per cent said so), but one that they are unable to make given the costs.
Canada's hot housing market is affecting home ownership plans across the country. Our new survey dives into how market conditions are impacting Canadian's current and longterm plans.
— Canada Life (@canadalifeco) June 23, 2022
Read more on what these trends could mean for you! https://t.co/EJGrDvFPpu pic.twitter.com/1nnDiJGiWl
Of those polled, a staggering 91 per cent said that buying a home in Canada is getting harder every year, while 73 per cent said right now is a bad time to get into the market.
Meanwhile, a total of 89 per cent believe it will be way harder for the next generation — interesting seeing as 37 per cent of Gen Zers in Toronto think they can afford to be homeowners — and 17 per cent said they'll never, ever own.
Nearly 30% of Toronto non-homeowners have accepted that they'll be renting for life https://t.co/RYsz40Z462 #Toronto #TorontoRealEstate #RealEstate
— blogTO (@blogTO) July 13, 2021
The main roadblocks are, obviously, ridiculous prices, not having enough funds for an adequate down payment, and not making enough to be eligible for a mortgage.
And of course, younger people 25-29 are far less likely (two times, actually) to be homeowners than older age brackets such as those 30 to 49, and a quarter of those who do own say they still feel "house poor" at current.
Though the issue has only been getting worse in recent years, there is some hope that we are finally entering more of a buyer's market, at least in Ontario, which could mean some slightly lower prices this year amid higher interest rates and a decrease in industry activity.
