Real estate prices in many Canadian cities have climbed to all-time highs during the pandemic, so it should come as no surprise that some Canadians appear ready to give up on their home ownership dreams.
According to a poll from Royal Bank of Canada released Monday, 36 per cent of non-homeowners under the age of 40 have given up on ever buying a home.
The bank polled more than 2,000 Canadians aged 18 and up, with 62 per cent of respondents saying they expect the majority of people will be priced out of the market over the next decade.
Challenging conditions due to increased demand and strained supply notwithstanding, 30 per cent say they’re still considering buying in the next two years, up eight per cent from RBC’s 2020 spring housing poll.
“Historically low mortgage rates and continued economic uncertainty have created a lot of unknowns for home buyers,” said Amit Sahasrabudhe, vice president of home equity financing, products and acquisitions at RBC, in a release.
“In addition to evaluating what you can afford now, potential home buyers should put their finances through a stress test to see if they can continue to carry the cost of owning a home if interest rates increase or if they had an unexpected expense or income loss.”
The pandemic has provided an opportunity for many Canadians to grow their savings, but the poll suggests it may not be enough for those looking to invest in residential real estate.
Nearly half of all survey respondents said their budget is under $500,000. According to the Canadian Real Estate Association, the average house price in Canada in February was $678,091.
Editor’s note: An earlier version of this story included an inaccurate headline. BNN Bloomberg regrets the error.