More than half of Ontarians believe they’ll be priced out of the city or town where they currently live, a new survey has found.
Conducted by Right at Home Realty, the research shows that housing affordability “continues to be a major concern” for those who do not own a home in the province.
Fifty-seven percent of Ontario residents believe they may never be able to afford a home in their current city or town. In the GTA the figure rises to 61%; in Toronto it sits at 74%.
As well, 45% of respondents said that housing affordability challenges have made them consider moving or buying a home elsewhere, while 54% said economic uncertainties are impacting their decision to purchase property.
“The cost of house prices is an issue, especially amongst my millennial clients,” said Milli Pajpani, Sales Representative at Right at Home Realty.
“Most millennials want a property–either to reside in or invest in–however, many do not have the savings to make those purchases happen because of the current prices.”
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Only 19% of potential first-time homebuyers said they plan to buy in the next two to three years, while 80% of current homeowners are not planning to sell in the next two to three years. In 2021, the figures sat at 30% and 77%, respectively.
Of those who are looking to sell, 23% said they’re doing so in order to take advantage of the current market, 26% are moving out of the city, and 33% intend to downsize. Only 7% plan to buy a bigger house, compared to 39% in 2021.
“The impact of rising mortgage rates has reduced the buying power of potential homebuyers,” said John Lusink, President of Right at Home Realty.
“Additionally, the minimum mortgage stress test rate will climb to seven percent or higher.”
While interest rate changes have become more of a concern across age groups, the survey found them to have a greater impact on young people.
When asked if a mortgage rate increase would impact their decision to buy a home, 61% of those aged 35 to 54 said no, as did 76% of those over 55; only 41% of Ontarians aged 18 to 34 shared the same sentiment.
“Another impact of the rising rates is the financial disincentive created for those thinking of selling but are now faced with much higher financing costs when considering buying their next home,” Lusink said.
“While we will continue to see a drop in market activity, we do not anticipate this will lead to a market crash.”