27% of Canadian Renters Ready to Buy

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

A significant number of Canadian renters are looking to transition into homeownership within the next two years, despite facing financial challenges and a competitive real estate market. A recent survey conducted by Royal LePage and Hill & Knowlton revealed that 27 per cent of renters in Canada have plans to purchase a property in the near future, with the percentage rising to 40 per cent among individuals aged 18 to 34. This younger demographic is particularly eager to make the shift from renting to owning, driven by a desire for financial stability and long-term investment opportunities in real estate.

27% of Canadian Renters Ready to Buy | Royal LePage Study

However, not all renters share the same optimism. Many cite insufficient income as the primary barrier to homeownership, with 54 per cent of renters who do not plan to buy a home within the next two years expressing concerns about their ability to afford a property that meets their needs. This sentiment is even more pronounced among younger renters, with 61 per cent of those aged 18 to 34 sharing similar worries.

The financial strain on renters is further underscored by the fact that nearly a third of them considered purchasing a property before signing or renewing their lease. However, a significant portion of these potential buyers were unable to proceed due to a lack of sufficient down payment funds. In British Columbia, where 25 per cent of renters spend more than half of their net income on monthly rental costs, the challenge of saving for a down payment is particularly daunting.

According to experts, the Canadian rental market is characterized by intense competition and limited supply, leading to escalating rental costs and making it increasingly difficult for renters to save up for homeownership. Despite these challenges, the desire to own a home remains strong among Canadian renters, driven by factors such as stability and the potential financial benefits of property ownership.

When asked about their reasons for choosing to rent instead of buy, a significant portion of respondents cited waiting for interest rates to decrease or property prices to drop. Others mentioned that they were renting while saving for a down payment, or that they did not qualify for a mortgage. However, experts caution against adopting a "wait-and-see" approach, emphasizing the importance of proactive financial planning in achieving homeownership goals.

While the desire for homeownership is prevalent among Canadian renters, significant financial barriers and a competitive real estate market pose challenges to achieving this goal. As renters navigate these obstacles, proactive financial planning and a realistic assessment of their options will be crucial in realizing their homeownership aspirations.