One third of Canadians, around 32 per cent, say saving for a down payment is the main barrier for them entering the housing market as rent prices outpace inflation amid lagging wages, according to a new survey.
CPA Canada and BDO Debt solutions released the survey results Wednesday.
Other key findings include:
- 30 per cent of respondents highlighted mortgage payment costs as their main obstacle to owning home
- Only 10 per cent indicated a preference toward the flexibility of renting compared to owning a home
“I think the main takeaway here is affordability is becoming a real problem. It goes beyond housing. You start looking at what the majority of respondents are saying in that they’re really struggling with cost of living,” Li Zhang, financial literacy leader at CPA Canada, said in an interview with BNNBloomberg.ca Monday.
“And so that really goes beyond just the question of can I maintain the home that I’m living in, or can I afford to buy? It’s how Canadians are struggling day to day. And that was really evident by just the overall results.”
Forty-three per cent of survey respondents highlighted high cost of living as the number one factor challenging their finances, while 14 per cent cited paying down debt.
David-Alexandre Brassard, chief economist at CPA Canada, said in a press release that rising housing costs in Canada are weighing on consumer spending similar to “sucking the oxygen out of the room.”
“High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences,” he said.
The survey also found a generational divide, where 74 per cent of those over the age of 55 own their home, a number that falls to 63 per cent in the 35 to 55 age group and to 31 per cent in the 18 to 34 bracket.
Nearly half of homeowners were focused on saving, according to the survey, with only around 12 per cent of renters.
“Homeownership is closely tied to financial stability and wealth accumulation,” Zhang said in the release.
“This is reflected in the behaviour of Canadians: homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque. Only four per cent of renters report prioritizing lifestyle spending—most are simply struggling to cover the basics.”
Methodology:
Leger conducted the 2025 Housing Market OMNIbus online survey from Feb. 7 to Feb. 10, 2025, among 1,590 randomly selected Canadians aged 18 and over.
