Nearly one in five Canadians will consider buying a home in 2024: survey
What’s the appetite amongst Canadians to pursue homeownership amidst high borrowing costs, growing home prices, inflation in living costs, and the uncertain economic climate?
According to a new survey of members of Canadian polling community Angus Reid Forum, on behalf of Toronto-based real estate brokerage firm Wahi, 18% of Canadians aged 18 and over indicate they will consider buying a home in 2024.
Amongst younger Canadians between the ages of 18 and 34, they are more likely to contemplate buying a home, with 24% noting their interest. This is higher than 22% for ages 35 to 54 and 11% for ages 55 and over.
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Respondents in Alberta are most likely to indicate they will consider buying a home (25%), followed by those in British Columbia (21%), Ontario (19%), Manitoba (also 19%), Saskatchewan (16%), Quebec (12%), and the Atlantic provinces (11%). Wahi suggests the higher proportion of Albertans considering home ownership may be due to the relatively more affordable real estate market conditions in Calgary and Edmonton compared to other major Canadian cities.
Half of the respondents across the country say the top barriers to thinking about buying a home are home price levels (49%) and interest rate conditions (48%).
There is growing consensus amongst economists that the Bank of Canada could make its first reductions to the policy interest rate starting in the middle of 2024, with some forecasters expecting the rate could fall to 4.25% by the end of 2024 — down from the current rate of 5%. It is believed Canada has already entered a moderate recession.
Nearly three in 10 respondents (28%) are not sure they have enough savings for a downpayment, especially those living in BC (36%), the Atlantic provinces (34%), and Ontario (29%).
Moreover, almost half of respondents (45%) are cutting back on spending to save up for purchasing a home, with those aged 18 to 34 most likely to cut back on spending (59%). As well, 21% of respondents intend to work more to save up faster or take on a gig-economy job, such as driving for Uber (8%).
As another method to achieve homeownership, 19% of potential homebuyers aged 18 to 34 intend to acquire a home with a partner or family member to split the cost.
The survey conducted in mid-December 2023 was based on a representative sample of 1,508 Canadians who are members of the Angus Reid Forum. It has a margin of error of +/-2.5%, 19 times out of 20.
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