RE/MAX has published its “Housing Affordability in Canada” report and found that 33 percent of Canadian homebuyers are “exploring alternative options to help them get a foot into the housing market.”
It should be noted that this report was completed by market research firm Leger and was compiled through an online survey of 1,539 Canadians was completed between June 4-6, 2021.
Among prospective homebuyers, millennials and Gen Z are most likely to consider alternative regions and communities, and/or financing options to keep affordability in play, said the report.
This alternative way if attaining real estate could be renting out a portion of a primary residence (21%), pooling finances with friends or family to purchase a home (13%) and living with like-minded neighbours in a co-op/shared living arrangement (7%).
RE/MAX noted that 42 percent of Canadians said the high price of real estate was a barrier to entry into the market, up 4 percent from last year. Other key barriers included a shortfall in salary (26 percent), fear of rising interest rates (18 percent), fear of being “house poor” (18 percent), lack of steady full-time employment (16 percent), current levels of household debt (11 percent), and the mortgage stress test (11 percent).
The report was broken into 16 major real estate markets across Canada. St. John’s , Regina, or Winnipeg are desirable locations with have an average sale prices above $300,000. Toronto and Vancouver sale prices surpassing $1,000,000, respectively.