27% of Renters Plan to Buy Property Within Two Years
A recent Royal LePage survey reveals that 27% of Canadian renters plan to buy a home within the next two years. This jumps to 40% for those aged 18 to 34. However, 69% of renters have no immediate plans to purchase, mainly due to insufficient income.
Phil Soper, President and CEO of Royal LePage, highlights that high mortgage rates and housing shortages are significant obstacles for many renters aiming to become homeowners.
Renters Consider Homeownership Before Leasing
Nearly a third of renters considered buying a home before signing their lease, but 41% decided to rent due to insufficient down payments. Other reasons include waiting for lower interest rates (33%) and property prices (30%), saving for a down payment (22%), and not qualifying for a mortgage (20%).
High Rental Costs for Canadians
Rental costs are a major burden for many Canadians. 36% of renters spend up to 30% of their income on rent, 37% spend 31-50%, and 16% spend more than half. In Vancouver and Toronto, these figures are 27% and 19%, respectively.
The Canadian Mortgage and Housing Corporation reports an 8% increase in rent for two-bedroom units over the past year, with vacancy rates at just 1.5% for purpose-built rentals and 0.9% for condo apartments.
Soper emphasizes the need for innovative solutions from the housing industry and government to address housing affordability and supply issues.
Key Highlights from the Royal LePage 2024 Canadian Renters Report:
50% of renters planning to buy within two years expect to have a down payment of less than 20%.
53% will use long-term savings for their down payment.
44% believe they can afford a home in their current city, while 37% do not.
In British Columbia, 25% of renters spend over half their income on rent, above the national average of 16%.
Ready to Make the Move to Homeownership?
If you're one of the many renters looking to buy a home, we can help you navigate the process. Contact us today to get started on your journey to homeownership. Let’s turn your homeownership dreams into reality!
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