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Housing

Canadian Renters Optimize for Falling Housing Prices, Await Ideal Market Conditions

Strategic Insights

— 1 min read

As Canadian renters eye the property market for potential future purchases, a growing number are choosing to delay their entry into homeownership due to affordability concerns, a recent survey suggests. According to the Royal LePage report, commissioned by Burson, a notable trend is emerging: renters are holding out for housing prices to drop further before making a move.

Key Takeaways:

  • 28% of respondents in this year's survey considered buying property, a figure that aligns closely with last year's 29%.
  • A significant 40% of renters across Canada reported waiting for property prices to fall further, a 10% increase from 2024, when 30% of respondents said the same.
  • Renters from Saskatchewan and Manitoba, where housing prices have seen modest increases, are among the most hesitant to transition to homeownership, with 48% choosing to wait for market prices to drop.
  • Despite lower living costs in the Prairies, regional markets in provinces like Saskatchewan and Manitoba have seen increases in home prices over the past year, with Saskatchewan's May price index rising 8.6%, tied with Newfoundland and Labrador for second highest in the country.
  • Quebec's housing market led the rest with 9.8% year-over-year growth in May, according to the CREA Home-Price Index.
  • Among Canadian renters, nearly a quarter (26%) cited unaffordability as their top concern for purchasing a home, with another 26% unable to afford a down payment or financing.

Statistics:

  • 28% of Canadian renters considered buying property in the next two to five years (Royal LePage report).
  • 40% of respondents said they were choosing to wait for property prices to drop further (Royal LePage report).
  • Housing prices dropped by 3.5% nationally in May compared to the same period prior year (Royal LePage report).
  • 8.6% average annual increase in home prices in Saskatchewan (CREA Home-Price Index, May).
  • 9.8% average annual increase in home prices in Quebec (CREA Home-Price Index, May).

Sources:

  • Royal LePage on Thursday released a report on Canadian renters.
  • Burson conducted the survey on behalf of Royal LePage.
  • The Leger Opinion online panel survey (June 2 - 9).
  • "Nationwide, home prices fell 3.5% in May compared with the prior year" (Royal LePage).
  • "For those looking to buy, we would not bet on prices improving further" (Royal LePage report).
  • CREA Home-Price Index for Saskatchewan (8.6% increase, May).
  • Globe and Mail (original article).

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