First-time Canadian homebuyers are facing steep obstacles in price appreciation, rapid population growth, and a limited supply of affordable housing stock, according to the newly published RE/MAX Canada’s Nation of Renters Report.
The report stated the erosion in housing affordability has been exacerbated by the Office of the Superintendent of Financial Institutions’ stress test, downpayment requirements, municipal and provincial taxes, and high closing costs. As a result, the report warned that “an obvious disconnect” between homebuilders, buyers and municipalities has created a housing crisis.
“Affordability remains, by far, the greatest barrier to homeownership from coast to coast,” said RE/MAX Canada President Christopher Alexander. “With the average price of a home in most Canadian markets more than doubling between 2006 and 2021, first-time buyers are falling through the cracks. Rental rates that remain above historic levels, the high cost of living, and wages that have not kept pace with price growth pose a serious challenge to buyers hoping to amass a downpayment. It’s near impossible for some buyers, even with steady, well-paying jobs. The dream of homeownership is eroding further and faster than their ability to save.”
RE/MAX Canada also warned the situation could worsen if the threat of US tariffs become a reality, with Alexander predicting that scenario would push Canada into a recession. But even without the threat of tariffs, Canada is dealing with a population that swelled by 17.4% between 2006 and 2021 without having a proper quantity of accommodations for the new arrivals.
“If you factor in the accelerated growth that occurred between 2021 and 2024, when further double-digit increases were recorded in Vancouver (+12.2%), Calgary (+15.5%), Ottawa (+8.7%), Toronto (+9.8%), Hamilton (+5.2%) and Halifax (+10%), the strain on the Canadian housing market is palpable, and the pressure is not expected to ease,” added Alexander. “Statistics Canada’s medium growth projections predict the population could reach close to 52.5 million by 2050.”
As for those living in rental housing, the report highlighted how rising rents created additional financial challenges for those who want to move into homeownership.
“The disparity in net worth between young homeowners and renters is striking, and reinforces our belief that governments at all levels should be working toward increasing homeownership levels,” said Alexander.
