- 64% of Quebecers have always dreamed of owning a home
- 27% are likely to buy in the next two years (up from 19%)
- 51% are saving less to buy a home due to inflation
TORONTO, April 23, 2024 /CNW/ – Despite inflationary pressures, more Quebecers are looking to make their dream of home ownership a reality. According to RBC’s 30th annual Home Ownership Poll, conducted among Canadians under the age of 65, 64% of Quebecers have always dreamed of owning a home. Half of Quebecers (50%) also believe owning a house or condo is a good investment (up from 40% in 2023) and 27% are looking to buy in the next two years (up from 19% in 2023).
Still, the research found that half (51%) of Quebecers say inflation is eroding their ability to save for a home. This challenge is acutely felt among Quebecers planning to purchase a home within the next two years. Among potential buyers who have some money earmarked for a home, more than a quarter (27%) say they aren’t saving every month (up from 5% in 2023). Potential buyers who are setting aside money each month for a home are saving $1,342 on average each month. Even with this setback, 41% of potential buyers in Quebec say they will save enough for their down payment in four years or less. Overall, potential buyers in Quebec say they need $34,377 more on average for a down payment (compared to an average of $103,240 among potential buyers in the rest of Canada).
“Quebecers have a lot of headwinds to face as they look to purchase a home in today’s market,” says Giovanna Francavilla, regional vice president, Québec. “According to our research, this may be driving some to find different ways to close the gap between what they can currently afford and what they would need to buy a home.”
Quebecers would need to explore various strategies to cover the cost of home ownership
The poll found that almost half (47%) of Quebecers say they would need a side hustle or second job to buy a home. Half (51%) also believe financial support from family is necessary today to buy a home with 28% saying they couldn’t afford to buy without an inheritance.
But home buyers in Quebec may not get the family support they desire. The research found that 26% of respondents say they wouldn’t provide money for a home to an immediate family member or child and 42% say they would want to give money for housing or rent, but simply can’t afford to. Among Quebecers overall, half (49%) would expect to be paid back if they did provide such financial support to their family or child. At the same time, the majority (51%) of respondents in Quebec said they would be willing to have family/their child live with them to help them save money for a home instead of providing financial support.
National Data: Mounting costs and inflation putting pressure on next-time home buyers
On a national level, two-thirds (66%) of next-time home buyers (i.e. those who currently own a home and are likely to buy again in the next two years) are concerned about covering the costs of home ownership. Additionally, half (51%) of next-time home buyers say they are worried about their ability to buy their next home due to inflation.
The research also found that three-quarters of next-time home buyers (76%) believe the housing market in their community is overpriced. Two-thirds (64%) say they wouldn’t be able to purchase their first home in today’s market and the same proportion (64%) believe they would need to move out of the city they are currently living in if they wanted to buy a larger home.
National Data: Newcomers are eager to buy in the near future
Among newcomers who arrived in Canada in the past five years, 73% say they have always dreamed of owning a home and 65% say they are likely to purchase one in the next two years (compared to 29% nationally). The majority also believe there is only a small window of time to take advantage of lower house prices (56%).
“Whether it’s your first or next home, it’s easy to feel overwhelmed when thinking about buying a home,” adds Francavilla. “Getting expert advice and having conversations early can help take a lot of the unknowns and stress out of the home buying process. Having a financial expert on your side who has a full picture of your finances can also help you build a home buying plan that works for you, whether you are just starting to save or just need some help to cross the finish line.”
RBC resources to help home buyers at every step:
- RBC True House Affordability Tool: See how much home you may be able to afford and learn about different mortgage options.
- RBC Home Value Estimator: See what your current home may be worth today.
- RBC Mortgage Specialists: Speak with an expert who can help you understand the total cost of home ownership and develop a plan that fits your overall financial goals and lifestyle.
- My Money Matters: Whether you are looking to buy your first home, second home, or even an investment property, you can find answers to all your mortgage financing and refinancing questions and helpful resources through RBC’s new online resource hub.
2024 RBC Home Ownership Poll
|
RESPONSE |
QC |
CAN |
BC |
AB |
SK / |
ON |
AC |
NTHB |
Newcomers |
|
% Agree – Base: All Respondents |
|||||||||
|
Always dreamed of owning |
64 % |
64 % |
64 % |
54 % |
66 % |
66 % |
65 % |
66 % |
73 % |
|
Rising inflation is causing |
51 % |
50 % |
51 % |
51 % |
58 % |
50 % |
44 % |
64 % |
68 % |
|
Would need a side hustle or |
47 % |
57 % |
62 % |
58 % |
62 % |
60 % |
53 % |
51 % |
75 % |
|
Have/will need to live with |
20 % |
27 % |
32 % |
25 % |
30 % |
31 % |
19 % |
30 % |
46 % |
|
Would need to overhaul my |
38 % |
45 % |
52 % |
43 % |
50 % |
45 % |
48 % |
51 % |
49 % |
|
Financial support from |
51 % |
62 % |
67 % |
64 % |
58 % |
68 % |
56 % |
64 % |
69 % |
|
Have/will buy a home with |
14 % |
19 % |
23 % |
13 % |
20 % |
22 % |
13 % |
33 % |
41 % |
|
Prefer to help my |
51 % |
54 % |
51 % |
53 % |
55 % |
58 % |
51 % |
64 % |
61 % |
|
We only have a small |
26 % |
34 % |
36 % |
32 % |
36 % |
39 % |
36 % |
50 % |
56 % |
|
Housing market in my |
73 % |
77 % |
85 % |
65 % |
76 % |
79 % |
82 % |
76 % |
72 % |
|
Unless I receive an |
28 % |
35 % |
43 % |
29 % |
38 % |
38 % |
35 % |
32 % |
38 % |
|
Expect to be paid back if |
49 % |
48 % |
43 % |
56 % |
49 % |
46 % |
44 % |
60 % |
52 % |
|
Buying a house or condo is |
50 % |
60 % |
67 % |
60 % |
59 % |
62 % |
59 % |
79 % |
79 % |
|
Likely to buy in the next two |
27 % |
29 % |
31 % |
31 % |
31 % |
30 % |
21 % |
100 % |
65 % |
|
In terms of inflation, |
43 % |
58 % |
60 % |
61 % |
65 % |
63 % |
60 % |
66 % |
76 % |
|
In terms of inflation, |
36 % |
44 % |
52 % |
40 % |
41 % |
47 % |
39 % |
51 % |
71 % |
|
Would give family members |
42 % |
39 % |
40 % |
40 % |
32 % |
39 % |
39 % |
30 % |
40 % |
|
% “Agree” – Base: Homeowners |
|||||||||
|
While I already own a |
65 % |
69 % |
75 % |
64 % |
63 % |
72 % |
76 % |
64 % |
54 % |
|
If I want to own a |
43 % |
51 % |
67 % |
44 % |
43 % |
56 % |
47 % |
64 % |
57 % |
|
*NTHB – next-time home buyers (i.e. those who currently own a home and are likely to buy again in the next two years) |
About the Survey
An online survey of 2,824 Canadians, including n=711 from Quebec, aged 18 to 64 was completed between January 25 and February 23, 2024, using Leger’s online panel. No margin of error can be associated with a web panel. For comparative purposes, a probability sample of 2,824 respondents would have a margin of error of ±1.8%, 19 times out of 20.
Disclaimer
This news release is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
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SOURCE RBC Royal Bank
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