More than one-quarter of Canadians plan to buy a home in the next two years, but a new poll shows a majority of Canadians feel they need a second job or “side hustle” in order to save enough to do so.
The RBC’s Home Ownership Poll surveyed 2,824 Canadians under the age of 65 early this year and found that 57 per cent believed they would need that second job or side hustle in order to supplement their savings, with 27 per cent saying they’ve had to or would have to live with their parents longer in order to afford a home.
Nearly half, or 47 per cent, say they need to overhaul their spending and saving habits to buy a home.
However, not everyone feels the need to stay with family to save, the survey showed, with 62 per cent saying financial support from family is necessary and two in five people saying they have or will need to buy a home with family, possibly through co-signing.
“Canadians have a lot of headwinds to face as they look to purchase a home today, whether they are a first-time buyer or searching for their next home,” Janet Boyle, RBC senior vice president of home equity finance and newcomer strategy.
Housing was a key element to the federal government’s latest budget, with a key focus on young Canadians who they hope to win back before the next election.
Among the proposals was building 3.87 million new homes by 2031, letting first-time homebuyers purchasing new builds to extend their mortgage amortizations to 30 years and raising the limit for RRSP Home Buyers’ Plan withdrawals to $60,000.
“The reality is for far too many young people, for far too many millennial families or Gen Zers, the dream of homeownership is getting further and further away every year, no matter how hard they work, no matter the side hustles they pull together,” Prime Minister Justin Trudeau said Tuesday while promoting the budget in Saskatoon.
The RBC survey showed 73 per cent of newcomers — those who arrived in Canada in the past five years — say they have dreamed of owning a home, with 65 per cent saying they’re likely to buy in the next two years.
Exclusive Ipsos polling for Global News, however, showed it failed to spark much of a rebound in the polls for the Liberals — just 17 per cent gave a “thumbs up” to the budget.
And while it was taken before the budget, the RBC poll shows mounting costs and inflation are putting pressure on those who already own but want to buy a new property in the next two years, also known as “next-time” homebuyers.
Sixty-six per cent of next-time home buyers said they’re concerned about covering the cost of home ownership, in part due to what a majority consider an overpriced housing market.
About half say they’re worried about being able to buy their next home due to inflation.