Roughly three-quarters (76%) of Canadians stating they were unlikely to purchase a new home in the coming year – up from 72% in the fourth quarter of 2023.
According to Q4 2024 Consumer Pulse survey from TransUnion (NYSE: TRU) that polled 1,000 adults, 59% of respondents who were planning to buy a home said rising prices would deter them making a property purchase, followed by 44% who reported that rising interest rates would discourage them. The generation most concerned about rising housing prices was Gen X at 65%.
The survey found roughly one-quarter (26%) of Canadians anticipated not being able to pay at least one of their current bills and loans in full. The rate of pessimism is higher for millennials, with 35% reporting that they anticipate not being able to make at least one of their debt payments in full – and this demographic also has the largest share of consumers by age group in Canada’s credit market, holding 27% of credit accounts.
Many Canadians believe their financial outlook is stagnant, with nearly six in 10 (59%) saying that their incomes remained the same in the last three months, and more than half (63%) saying that they do not expect their household income to increase in the next six months. Nonetheless, more than one in five (22%) Canadians said they planned to take on additional credit or refinance existing credit in the next year – and of those, 43% anticipate applying for a new credit card.
“While economic indicators show that consumers are likely to enjoy some relief from their financial pressures in 2025, many are still navigating the challenges caused by the highest interest rates since 2001 we recently experienced,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “With more than half of households expecting their income to stay the same in the next 12 months, added liquidity created by anticipated further interest rate cuts should create some room to breathe, and fuel optimism for 2025.”
