Royal LePage’s 2024 Canadian Renters Report shows that 27% of Canadian renters are eyeing home ownership within the next two years. This figure rises to 40% among those aged 18-34. Despite this aspiration, many face significant hurdles. Among those not planning to buy soon, 54% cite insufficient income as the main barrier, a concern even more pronounced among younger renters.

The affordability crisis is acute in British Columbia, where 25% of renters spend over half their income on rent, far above the national average of 16%. In Ontario, 30% of renters considered buying before renewing their lease, with 47% deterred by insufficient down payments. Among potential buyers, 43% believe they can afford a property in their current city.

High mortgage rates and low vacancy rates compound the issue, resulting in higher rents that keep many in the rental market longer than planned. In Toronto, the average rent for a two-bedroom unit rose 8.7% over the past year, and in Vancouver, it increased by 8.6%.

Many renters plan to utilize savings, FHSA, RRSPs, or family gifts for their down payments. Yet, only 44% believe they can afford a home in their current city, prompting some to consider relocating over 50 km away.