A key segment of
Canada’s first-time homebuyer market appears to be delaying its purchasing
plans. A new survey by real estate giant
Royal LePage suggests renters are holding back, waiting for further price
declines.
The survey finds that
40% of renters, who considered buying before signing or renewing their current
lease, are waiting for property prices to drop.
Another 29% are waiting for further interest rate reductions and 28% say
they are continuing to rent while they save for a down payment.
The market has become
more buyer friendly (prices are off their peaks, interest rates are down and
supply is up) but affordability is a primary concern for renters. Across Canada, 15% of tenants say they spend
more than half of their net income on rent.
More than half of renters (53%) believe their income will not allow them
to buy in their preferred neighbourhood.
Beyond the financial
concerns, nearly a third of renters (31%) say they have no intention of
buying. Of that group, 40% say renting
is more affordable, and another 40% simply do not want the responsibilities
associated with homeownership.
At the same time
rental costs, while still high, have been moderating. One national analysis shows, average rent for
a one-bedroom unit declined 3.6% year over year to $1,857 in May 2025. Two-bedroom rents fell 4.6% to $2,225.
The survey suggests
the desire for ownership remains strong with 54% of renters saying they intend
to buy a home “in the future”. Sixteen
percent expect to make the move within the next two years, 21% are looking to
buy in two to five years.