While 60% of Canadians believe homeownership is a good investment, half of Canadians complained that inflation is eroding their ability to save for a home, according to the 30th annual Homeownership Poll conducted by RBC (NYSE:RY).
In an online survey of 2,824 Canadians aged 18 to 64, 41% of overall potential homebuyers said it will take them four years or less to save enough for a down payment. To achieve that goal, 57% or respondents said they would need a side hustle or second job and 27% said they had to or would have to live with their parents longer to afford a home. Almost half (45%) also say they would need to overhaul their spending and saving habits to buy a home.
Family continues to play a big role among potential buyers, with 62% saying financial support from family is necessary to buy a home and 19% saying they have or will need to buy a home with their family and/or parents.
As for previous buyers looking to make a new purchase, 66% were concerned about covering the costs of homeownership while 51% were worried about their ability to buy their next home due to inflation and 76% believed the housing market in their community was overpriced.
“Canadians have a lot of headwinds to face as they look to purchase a home today, whether they are a first-time buyer or searching for their next home,” said Janet Boyle, senior vice president for home equity finance and newcomer strategy at RBC. “While affordability anxiety remains, our research found that many homebuyers are exploring different approaches to realize their dream of homeownership.”
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