With tax season just behind us and the spring housing market sprouting, Canada’s accountants are adding their voices to concerns about homebuying challenges in this country.
Chartered Professional Accountants Canada (CPA) teamed up with BDO Debt Solutions to conduct a survey that suggests the dream of homeownership is fading, especially for renters and younger Canadians.
Of the non-homeowners surveyed 32% say large down payment requirements are keeping them out of the market. Rising rental costs were noted as a key obstacle to saving for a down payment. Thirty percent cited high mortgage costs. Overall, more than 40% of respondents pointed to “managing the high cost of living” as their biggest financial challenge.
The main culprit, according to CPA, is simply the shortage of homes available in Canada. While reducing immigration is seen as helping to lower demand, CPA says getting more homes built would be the most meaningful way to meet people’s wants and needs.
The housing shortage and rising costs are not the only concerns. Even though the survey was conducted in February, before punitive American tariffs were fully in place, the uncertainty caused by the threatened trade war was eating away at consumer confidence.
“Many Canadians are bracing for worst-case scenarios, adjusting their financial plans to safeguard against potential downturns,” says Li Zhang, financial literacy leader at CPA Canada.