Do you dream of owning a home someday? If so, you’re not alone. The desire to put down roots and invest in a home is a common one.
And this dream is still strong across North America. The problem is, many can’t afford it.
To many, the dream seems elusive as a result of the significant cost not just of purchasing a home but also in carrying it. Many who would like to and can pursue the dream never will due to fears associated with the lack of affordability (“Will I be in over my head?” “Will I lose money?”).
Affordability is a concern
According to the RBC 2017 Home Ownership Poll, 80% of Canadians believe homeownership is a good investment.
However, only 25% plan to purchase a home this year. Why the discrepancy? Considering the average Canadian home price has climbed over the $500,000 mark, it’s understandable why many won’t find home-buying affordable just yet. And “yet” is the key word. For many, their plans to own a home someday have not changed. They’re simply delayed. For example, nearly 40% of Canadian millennials plan to buy a home in the next two years.
As some Canadians put their home-buying plans on hold, they cite three main reasons for the delay. More than half of those participating in the RBC poll believe that housing prices may come down. Others are uncertain about the state of the economy and also express concern that carrying costs continue to increase.
How are they dealing with it? As RBC vice president Nicole Wells suggests: “For many Canadians, buying a home is a financial and personal milestone – often the biggest investment one will make.
“In today’s market, the best advice is to start with understanding exactly how much you can afford, and focus on your wants and needs ahead of starting the house hunt. … Knowledge and education are key.”