Canadians have altered or completely ditched their homebuying plans as the cost of living continues to rise across the nation.
A new report from real estate company Royal LePage shows the true magnitude of how higher interest rates and inflation have affected these plans, especially for Canadians between the ages of 18 and 34.
Over half of Canadians (54%) surveyed had no aim to purchase a home since the beginning of this year. Nineteen percent postponed or deprioritized their existing homebuying plans, and 28% did not change theirs.
Bank of Canada spiked interest rates multiple times throughout 2022, leading to anxiety among aspiring homeowners, especially the younger crowd.
Nearly a third of Canadians aged 18-34 switched up their homebuying plans this year. Of these, 40% said they still planned on the purchase, but at a later date. The rest (60%) have put their big plans on hold indefinitely.
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In 2011, an Ipsos survey revealed that nearly half (46%) of homeowners under the age of 35 agreed that their mortgage was “using up too much of their income.” Two in three said that their mortgage was “bigger than they would like it to be.”
Back then, the average residential property cost much less — $535,500 in Vancouver; $392,200 in Victoria; $388,200 in Toronto; and $386,800 in Calgary, according to Statistics Canada.