Despite stratospheric prices in the country’s largest housing markets, a majority of Canadians still see the value in owning a home compared to renting.
That’s one of the findings in RBC’s annual Home Ownership poll, which revealed 66% of Canadians believe it makes more sense to buy vs. rent.
Despite prices falling over the past year, homes are still significantly more expensive in many markets compared to a several years ago. The issue of affordability means that buying a home and living “house poor” is the reality for one in four (25%) of Canadians, the poll found.
It noted “house poor” refers to those who overextend themselves and end up spending 30-40% or more of their income on home ownership and related expenses.
“While nearly all Canadians (92%) admit that mental stress is a potential impact of being house poor, almost half (47%) say it’s worth the sacrifice,” reads the report.
Given the shifting conditions in the real estate market, 56% of respondents said it would be better to hold off on a house purchase until next year. Of those, 45% said they would be willing up to wait two years to make their purchase—or 55% of 18- to 34-year-olds—since a majority (54%) believe house prices will continue to fall.
Those in B.C. (68%) and Ontario (58%) were most likely to expect a continuing decline in prices.