Right at Home Realty: More Than Half of Ontarians Believe They May Be Priced Out of Their Own City

New research from Right at Home Realty reveals more than half (57 per cent) of Ontarians believe they may never afford a home in their current city or town.

TORONTO--()--Today, Right at Home Realty (“Right at Home”), Canada’s largest independent real estate brokerage, released new data revealing more than half of Ontarians believe they may never afford a home in their current city or town. Additionally, more than half (54 per cent) of parents in Ontario are not planning on helping their children buy a home in the future.

The data also revealed:

  • Most (80 per cent) of Ontario homeowners are not planning to sell their home in the next two to three years compared to 77 per cent in 2021.
  • Only 19 per cent of potential first-time homebuyers in Ontario plan to buy in the next two to three years, compared to 30 per cent in 2021, an overall decrease of 56 per cent year-over-year.
  • Nearly one-quarter (23 per cent) of Ontario homeowners who plan on selling their home are doing so to take advantage of the current market, compared to 11 per cent in 2021, doubling the amount since last year.
  • Nearly one-third (32 per cent) of Ontarians say the COVID-19 pandemic has negatively impacted their ability to save for a home, compared to nearly one-quarter (23 per cent) in 2021, a 39 per cent increase year-over-year.

“The impact of rising mortgage rates has reduced the buying power of potential homebuyers. Additionally, the minimum mortgage stress test rate will climb to seven per cent or higher,” said John Lusink, President of Right at Home Realty. “Another impact of the rising rates is the financial disincentive created for those thinking of selling but are now faced with much higher financing costs when considering buying their next home. While we will continue to see a drop in market activity, we do not anticipate this will lead to a market crash.”

“News of rising mortgage rates may be a deterrent for some, however, those that take the time to do the calculations are often pleasantly surprised that the difference in the monthly payment is not as high as they would have expected,” said Christina O’Dea, Broker, Right at Home Realty.

Most homeowners plan to stay put
While many (80 per cent) respondents cited they are not planning to sell their homes in the next two to three years, the reasons for those who are interested in selling (20 per cent) vary. The top cited reasons include downsizing (33 per cent), moving out of the city (26 per cent) and taking advantage of the current market (23 per cent). Furthermore, the number of homeowners stating they would sell their homes to take advantage of the current market has doubled since last year (11 per cent and 23 per cent, respectively). This indicates a dramatic shift in the housing market, and only seven per cent of respondents who identified plans to sell in the next two to three years said it would be to upsize/buy a bigger house. In 2021, a substantial 39 per cent cited upsizing as a reason for selling, reflecting a sizeable decrease of 82 per cent in this year alone.

Younger buyers are more likely to feel the impact of rising interest rates
Interest rate changes have become more of a concern this year. This is reflected in the 12 per cent year-over-year decrease of respondents who said a mortgage rate increase would impact their decision to buy a home. Nearly two-thirds (61 per cent) of all respondents said a mortgage rate increase of 150 basis points (1.5 per cent) or less would have no impact on the decision to purchase a home, compared to 70 per cent in 2021. Furthermore, significant discrepancies were identified among different age brackets, with younger age groups being more impacted by mortgage rate increases. Two-fifths (41 per cent) of Ontarians aged 18 to 34 said mortgage rate increases would not impact their decision to buy a home, compared to 61 per cent and 76 per cent for those aged 35-54 and over the age of 55, respectively.

Affordable housing concerns persist
Housing affordability continues to be a major concern for those who do not own a home, especially in the GTA and 416 regions. The data found that 61 per cent of those in the GTA and 74 per cent of those in 416 regions believe they may never be able to afford a home in their current city or town. Additionally, more than half (54 per cent) of Ontarians said economic uncertainties are impacting their decision to buy a home and nearly half (45 per cent) reported that housing affordability challenges have led them to consider moving or buying a home in another city or town.

“The cost of house prices is an issue, especially amongst my millennial clients,” said Milli Pajpani, Sales Representative, Right at Home Realty. “Most millennials want a property – either to reside in or invest in – however, many do not have the savings to make those purchases happen because of the current prices.”

Methodology
This Maru Public Opinion study was conducted on behalf of Right at Home Realty from May 10th to May 12th, 2022, by Maru/Blue. The study surveyed 813 randomly selected Ontario adults who are Maru Voice Canada online panelists. The results of this study have been weighted by education, age, gender and region to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Ontario. For comparison purposes, a probability sample of this size that is comprised of full-time employed respondents used in this study has an estimated margin of error (which measures sampling variability) of +/- 3.0%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.

About Right at Home Realty
Right at Home Realty, a RealServus company, is Canada’s largest independent real estate brokerage. Founded in 2004, Right at Home is a premium full-service brokerage supporting Realtors® and their clients through industry-leading practices, experience, technology and market intelligence. Right at Home offers consumers a full suite of best-in-class real estate services to guide them to successful outcomes in today’s marketplace. The company is a dominant force in the province with a presence in 12 regions across Ontario and a network of over 5,900 highly trained and experienced Realtors®. Under the company’s proven model, Right at Home Realtors® keep 100 per cent of their commissions, offering the industry a highly favourable alternative to outdated business models. This model allows Realtors® to re-invest money into their business and ensure they are providing superior services to their clients. Visit www.rightathomerealty.com for more information.

Contacts

Media
Ema Asler
Kaiser & Partners
ema.asler@kaiserpartners.com
647-725-2520

Release Summary

More than half of Ontarians believe they may never afford a home in their current city or town: Right at Home Realty.

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Contacts

Media
Ema Asler
Kaiser & Partners
ema.asler@kaiserpartners.com
647-725-2520