A majority of Canadians who do not already own a home have no intention of purchasing one within the next year, according to a recent survey by personal finance platform NerdWallet Inc. The poll of 1,501 Canadians found that cost of living and affordability are the primary obstacles.
Affordability Crisis Hits First-Time Buyers
More than 50% of non-homeowner respondents said they do not plan to buy a house in the coming year. Rising home prices and unpredictable costs were cited as top barriers by 23% of respondents, with 34% of those being Generation Z, whose oldest members are 29.
Clay Jarvis, NerdWallet’s lead writer and spokesperson on Canadian real estate and macroeconomic trends, stated, “The market is inaccessible to first-time buyers and there’s no surprise that Canadians believe the system is broken.”
Existing Homeowners More Likely to Buy
In contrast, survey recipients who already own property were more likely to plan future purchases. Seven percent said they are looking to scale up or buy an investment property in 2026. However, 33% of all respondents expressed concern about down payment prices or mortgage rates.
The Canadian Real Estate Association (CREA) forecasts the national average home price will rise 1.5% annually to $688,955 in 2026 and $695,094 in 2027, though growth varies by region. British Columbia, Alberta, and Ontario are expected to see virtually no growth, while other provinces may experience gains of 2% to 5%.
Financial Barriers and Inequality
Jason Heath, a certified financial planner at Objective Financial Partners Inc., noted, “When home prices are rising, rents follow suit. Renters struggle with higher rental costs and larger required down payments. Cost of living increases, especially with higher inflation, have squeezed savers’ cash flow.”
Jarvis added, “It’s easier to buy a home when you own one, which speaks to the inequality that homeownership creates. Property-derived wealth stays within families, making it harder for young Canadians to build wealth for a major investment.”
Market Weakness and Regret
Weaker buyer demand is affecting sellers. Last month’s home sales were 9% below the five-year average and nearly 19% below the 10-year average, according to CREA, despite May historically being an active month. Among survey respondents, 28% said they are committed to renting, while 7% plan to stay with relatives despite wanting to enter the market.
More than four in 10 respondents reported some form of regret related to homeownership, mostly tied to unexpected maintenance costs. Nine in 10 agreed that homes in Canada are overvalued, and nearly seven in 10 found the housing market unfair to first-time buyers.
