About 63% of homeless Canadians have given up buying a home

With rising house prices, rising inflation and rising interest rates, we are seeing a large number of Canadians abandon their dream of owning a home, according to the latest Ipsus poll, a dream for most Canadians who can afford it. In the housing market do not seem out of reach.

The survey shows that out of every 10 Canadians who do not own a home (63%), 6 have given up buying a home altogether.

“As housing prices rise, inflation continues and interest rates rise, we see that many Canadians have somehow abandoned their dream of home ownership,” said Gregory Jack, Ipsus’ vice president of public relations.

According to the survey, these sentiments are highest in British Columbia (74%), Quebec (72%) and Ontario (62%), but lowest in the Perry and Atlantic areas of Canada. Is. In addition, more than two-thirds of Canadians (67%) agree that having a home is only for the rich.

An Epsus poll of more than 1,000 Canadians between April 14 and 19, 2022, found that homeowners are more optimistic about their future in the long run than homeless people.
The difference between the attitudes of generations towards housing

Although 57% of Canadians disagree with the statement that the importance of buying a home is now less than it was 25 years ago, 18 to 34 year olds (38%) are more likely to be over 55 years old (49%). They agree with this way of thinking.

Paul Cershaw, a professor at the University of British Columbia, studied the issue of lower housing prices in Canada and founded the Generation Squeeze Institute to better understand the economic realities of different generations.

“When baby boomers entered their teens in the 1970s, with five years of full-time work and savings, they could pay up to 20 percent of their home advance,” she told Global News. Today’s young people have to work 17 years to get to that point.

According to him: “Housing prices and incomes from work all the time are very different. “This difference will drastically reduce the possibility of affordable housing for young Canadians and anyone looking to buy a home for the first time.”

Kershaw added: “Canadians have accepted this growing difference, because for people who have already entered the housing market, rising housing prices will increase their wealth.” In addition, culturally and politically, people are accustomed to rising housing prices.

The Epsos poll also confirms this: Although 77% of respondents agreed that they would be financially secure even without buying a home, the same percentage agreed that home ownership is the best investment. Anyone can do.
Canadians’ realism about affordable house prices

Today, most young people think about where to put their money and do not dream that they must own a house like in the past.

Robert Hugh, chief economist at Royal Bank of Canada, believes that the current group of homebuyers may change their expectations of cost-effectiveness as rising interest rates will reduce Canadians’ purchasing power.

He notes that fixed and variable mortgage rates have risen significantly since last fall, increasing monthly mortgage costs for potential buyers by hundreds of dollars.

Hogg said in an RBC Bank forecast last week that “affordable housing prices” could reach “worst levels” by the third quarter of this year, as rising housing prices would be combined with higher borrowing costs.

According to him, although RBC predicts that total housing prices will fall by 2.2% in 2023, rising interest rates will still drive many potential buyers out of the market.

Even if prices are to be reformed from tomorrow, there must be a major overhaul and a substantial reduction in prices to effectively offset the impact of rising interest rates on mortgages.
Increasing Generation Z interest in joint ownership

“Even if the dream of a white fence is shattered, young Canadians can use clever solutions to bypass the market and find a way to achieve their dreams,” said Gregory Jack.

People are feeling the pressure of the market, and at this time they may be paying attention to issues that they did not consider before. A Ipsus poll shows that there is a growing desire for co-ownership, and this could be one way to become a homeowner.

About 74% of Z-generation respondents think about joint ownership of the house with a family member or friend, while 58% of the millennial generation and 43% of the X-generation think about it.
Dissatisfaction of home hunters with federal budget options

According to an Ipsus poll, Canadians seeking government support were heavily influenced by the federal government’s recent budget.

In response to a question about the proposed tax-free savings account for first-time homeowners, 40 percent of non-homeowners feel that this account will help them eventually buy a home. This figure rises to 47% among people under the age of 35.

However, in general, most Canadians (75 % )

It has not taken the necessary measures in this regard.

Robert Hughes believes that while the measures announced in the federal budget, including the new savings account and the increase in housing supply, will have good results, they will not have much effect on the housing market hunters in the short term.

According to opinion polls, the Federal Reserve’s “housing-focused” budget could not affect the cost-effectiveness of the prices, and participants believe the government has not been successful and has not done much.

“The issue of affordable housing is not being solved by the government alone,” Kershaw said. “This problem is no longer just a political issue, but a cultural problem.” He argues: “A clear goal is needed to stop the rapid rise in housing prices. We will not achieve a reasonable result just by taking steps to slow down the price movement. The current wages of the younger generation will never be enough. “They can save to buy housing.”

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