Half of non-homeowners are unlikely to enter the housing market according to new CPA Canada research
TORONTO, June 1, 2022 /CNW/ – Although it has always been one of the main life goals of Canadians, the prospect of homeownership for non-homeowners remains far from complete, according to a new study led by accountants. licensed professionals from Canada (CPA Canada).
The housing headache A study found that half of Canadians who don’t currently own a home believe it’s unlikely they’ll ever be able to buy one. And, while the other half are optimistic about home ownership, only one in five (21%) think it is very likely to enter the housing market, while 29% think it’s quite likely.
Obstacles to home ownership
According The housing puzzle study, currently just over half of respondents own a home (53 percent), while 45 percent rent or rent. The study delved into the reasons that keep renters from becoming homeowners and, unsurprisingly, 89% of respondents cited the threat of rising interest rates as the biggest challenge to owning their own home. Other barriers cited include:
- Payment of a deposit (84%).
- 83% of them agree to renovations, while an equal number cite the availability of housing in the desired area as a challenge.
- Taxes and mortgage payments equal 81%.
- Income stability worries 69 percent.
“Homeownership remains a priority for many, but what it takes to get there for so many Canadians is becoming increasingly difficult,” said Doretta Thompson, CPA Canada’s financial literacy leader. “Conventional wisdom was to buy the biggest house you could afford, but it’s important to define your personal goals, balance them with means, and look for multiple ways to provide financial security. Owning a Physical Asset is not the only definition of success.”
Gender and generational divides
Overall, women tend to be more likely than men to see home ownership as a challenge for them. For example, rising interest rates concern 93% of women versus 85% of men, and making a down payment is daunting for 86% of women versus 81% of men.
Additionally, 31% of parents with adult children living in their home say their children still live at home because housing is too expensive. Despite this, among those who currently do not own a home, three in four Gen Z respondents and seven in ten Millennials remain confident they will buy a home in the future. Although their rates of home ownership are much higher than those of younger cohorts, among older Canadians who do not own a home, optimism about doing so is much lower, at only 38% for Generation X and 13% for Baby Boomers.
Homeowners still face challenges
The housing conundrum persists for those who own their homes. Many Canadians struggle with what renters identify as barriers to homeownership:
- Three in five homeowners say it’s hard for them to afford necessary renovations, while 46% struggle to afford basic home maintenance costs.
- Two in five say mortgage payments and property taxes are difficult to keep track of, while 35% find utility payments difficult.
Ease the housing headache
Although homeownership seems a long way off for many Canadians, that doesn’t mean the goals of a happy lifestyle and long-term financial security are out of reach.
“Shifting your mindset and carefully considering expectations can be a good start when it comes to dealing with the housing puzzle,” Thompson said. “Weigh your needs against your wants and think about what you can afford based on your income and lifestyle. For some, this may mean rethinking the size and/or location of a home purchase. For others, it may mean a longer-term rental strategy — or even an open-ended rental strategy — with complementary savings and investment goals to secure your long-term financial future.”
PCA Canada offers many free tips and resources to help Canadians improve their understanding of money and feel empowered in their financial decisions. His catalog of financial literacy sessions is available online, including workshops and educational materials for all stages of life.
These are the results of an Ipsos survey carried out on behalf of the chartered accountants of Canada. The fieldwork was carried out between March 24 and April 4, 2022. In total, n=2,000 Canadians aged 18 and over participated in the survey, which was conducted via Ipsos’ online omnibus. The combined data was weighted by age, gender, education and region to ensure that the sample composition reflects the Canadian population. The accuracy of Ipsos online surveys is calculated using a credibility interval. In this case, the sample is considered accurate to within +/- 2.5 percentage points if all Canadians aged 18 and over had been surveyed. An information document can be consulted online at the following address: cpacanada.ca/housingheadache.
About from Canada CPA
The Chartered Professional Accountant (CPA) designation is used by more than 220,000 professional accountants worldwide. Canadian CPAs are valued for their financial and tax expertise, strategic thinking, business vision, management skills and leadership. Canadian CPAs hold leadership positions in Canada and internationally and are recognized as having the highest standards of professionalism and integrity. They work in all sectors of the economy: public practice, industry, government, not-for-profit and academia.cpacanada.ca
For further information: For more information or media inquiries, please contact: Perry Jensen, Director of Media Relations, Chartered Professional Accountants of Canada, 416-204-3941, [email protected]