Nearly half of Canadian renters expect to stay tenants indefinitely: survey
Nearly half of Canadian renters expect to stay tenants indefinitely: survey
Nearly half of Canadian renters expect to stay tenants indefinitely: survey
Almost half of Canadians who rent say they will continue to do so indefinitely and aren't sure when they'll be able to get into the housing market, says a new survey.
Renters surveyed by insurance firm Canada Life cited a lack of cash, fear and uncertainty as reasons for staying on the sidelines, with almost 73 per cent saying it's a bad time to buy a house and 17 per cent saying they'll never buy one.
Ninety-one per cent of renters surveyed believe buying a home is getting harder every year, and 89 per cent expect the next generation to have an even harder time getting into the housing market.
While 79 per cent of respondents believe homeownership is a good investment, 64 per cent don't think they'll be able to buy a house unless they have financial support from others like family members.
The survey, conducted between May 5 and May 11, also found that Canadians between 25 and 29 are two times more likely to continue renting indefinitely compared with those aged 30 to 49.
The housing market is showing signs of cooling, however, with home sales dropping nearly 22 per cent in May compared with last year, and almost nine per cent between April and May, according to recent data from the Canadian Real Estate Association (CREA). The countrywide average, non-seasonally adjusted price of a home was CAD$711,000 in May, down almost five per cent from April.
But that doesn't mean renters are feeling more confident in their ability to buy a home, as out-of-control inflation and rising interest rates impact the availability of funds, said Paul Orlander, executive vice-president of individual customer at Canada Life.
"These factors will likely have Canadians continuing to see homeownership as increasingly challenging," he said in an interview.
Current homeowners are also feeling the pressure, with 24 per cent of those surveyed saying they feel house poor.
As the Bank of Canada continues to hike interest rates, homeowners could face even more pain as mortgage payments climb higher.
The central bank, which is scheduled to make its next interest rate decision on July 13, has signalled that it is open to larger hikes if needed. Meanwhile, Canada's inflation rate skyrocketed to 7.7 per cent in May, according to Statistics Canada.
Regardless of the decision Canadians make around homeownership, wealth building and retirement plans will be affected.
While buying builds equity that could be valuable long-term, homeownership and the cost of maintaining a house can actually displace Canadians' ability to save for retirement, Orlander said.
Renting on the other hand can offer more flexibility and can preserve free cash flow for savings and investments each month that could go toward retirement, he added.
This report by The Canadian Press was first published June 23, 2022.
The Canada Day long weekend is the perfect time for burgers on the grill, cold drinks and time with family and friends. Yet a backyard barbecue comes with a bigger price tag this year as food prices soared 9.7 per cent in May.
New federal regulations to force down the greenhouse gas emissions from gasoline and diesel will cost Canadians up to 13 cents more per litre at the pump by 2030.
With inflation reaching a 40-year high, many Canadians have been left in a state of worry. Not only about the rising prices of consumer goods, but whether or not they should continue to save money. It’s not such a simple question, and it depends greatly on your circumstances, contributor Christopher Liew explains in an exclusive column for CTVNews.ca.
As inflation rates soar to the highest they've been in Canada in nearly forty years, nearly half of Canadians say that right now, they're doing worse financially than they were at this time last year.
With Statistics Canada reporting a 9.7 per cent increase in food costs over the last year, Canadians are being pushed to find ways to pinch pennies at the grocery stores. Here are some ways to save.
As fuel prices reach record highs and drive inflation, there have been growing calls for governments to temporarily suspend or reduce gas taxes. CTVNews.ca spoke with experts on whether a gas tax holiday makes sense in Canada.
Soaring gas prices helped the annual inflation rate in May soar to its highest level in nearly 40 years, as the rising cost of living for Canadians squeezed household budgets and bolstered expectations the Bank of Canada will opt for a supersized interest rate hike next month.
