New survey reveals how many Ontarians can't afford a house in their own city
The dream of home ownership for many Ontarians may never become a reality, according to a new survey.
New research published Wednesday by Canada’s largest independent real estate brokerage, Right at Home Realty, shows that more than 57 per cent of residents don’t believe they will ever be able to afford a home in their current city or town.
The problem gets worse for individuals in the Greater Toronto Area.
The study revealed that 61 per cent of respondents in the GTA believe they are being priced out. That number moves to 74 per cent in Toronto proper, where the average cost of a home was $1.35 million as of April 2022, according to the Canadian Real Estate Association.
- Download our app to get local alerts to your device
- Get the latest local updates right to your inbox
“It is a bit disheartening. And certainly, the most recent challenges with rising rates and all the other pressures in the market have turned the tap off as far as demand goes and supply remains unchanged. It’s kind of a perfect storm in the worst kind of way,” John Lusink, president of Right at Home Realty, said in an interview with CTV News Toronto.
The survey, which polled 813 randomly selected Ontario adults, was conducted between May 10 and May 12 -- three weeks before the Bank of Canada increased its key interest rate by half a percentage point to 1.5 per cent.
At that time, 61 per cent of those surveyed said a mortgage rate hike would have no impact on their decision to buy a home -- down from 70 a year earlier.
But despite rising interest rates by Canada’s central bank in the face of inflation, Lusink said he believes that Ontario, and specifically the Toronto housing market, won’t crash, even as the drop in market activity continues.
READ MORE: Nearly 1 in 4 homeowners would have to sell if interest rates rise more, survey finds
“I think, given the quality and the nature of the city in terms of being a worldwide standard, we’re as close to [a crash] as we could get. I don’t see a crash and certainly immigration keeps pouring in so I think that sets the condition for maybe a balancing. But crash within the GTA proper, I don’t foresee.”
A house that sold for more more than the listing price in West-end Toronto, Sunday, April 24, 2022. THE CANADIAN PRESS/Graeme Roy
Earlier this month, a report published by Desjardins suggested that, due to rising interest rates and a return to a post-COVID world, the Canadian housing market overall had reached “an inflection point" -- which will be felt most in Ontario where housing prices could drop as much as 18 per cent.
"We expect the housing market correction in Ontario to be led by a decline in sales activity and prices in smaller centres outside of major urban areas," the report read.
Areas expected to be hit the hardest include Bancroft, Chatham Kent and Windsor-Essex, while Toronto prices will go largely unchanged.
EXTENDED: These are the areas where Ontario housing prices could see the biggest drop
While that may be good news to those looking for a home outside of the city, the survey by Right at Home Realty also found that most current home owners in Ontario aren’t planning on selling their properties any time soon.
In fact, 80 per cent of owners said they would stay put for the next two to the three years compared to 77 per cent in 2021.
“One of the things which you don’t hear much about is the dual-impact of rising rates: There’s a reduction in home buying power given that rates [are rising] and then, if I was looking to sell and still needed to get a loan, suddenly I’m faced with much increased monthly payments. I might look at that and say, ‘You know what, we might just stay put and make do,’” Lusink said.
Lusink added that unless the government introduces a cut to the current mortgage stress test, which determines if you’ll be able to make mortgage payments if and when interest payments rise, we could see the current rate of 5.25 per cent move to seven per cent or higher, further icing out prospective buyers.
“Without that adjustment, it makes it very hard for the average homebuyer for sure,” he said.
With files from Abby Neufeld
CTVNews.ca Top Stories
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.