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
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
New analysis of Beethoven's hair reveals possible cause of mysterious ailments, scientists say
High levels of lead detected in authenticated locks of Ludwig van Beethoven's hair suggest that the composer had lead poisoning, which may have contributed to ailments he endured over the course of his life, including deafness, according to new research.
B.C. man used Bobcat as 'weapon' while chasing away homeless people, judge says
A B.C. man has been convicted of assault with a weapon after using a skid-steer Bobcat to chase two homeless people from his lawn, injuring one of them in the process.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Flat tire on a highway? Here's why you shouldn't try to fix it
If you're cruising down a highway and realize you have a flat tire, you may want to think twice before stopping to fix it on the side of the road.
Miss Teen USA steps down just days after Miss USA's resignation
Miss Teen USA resigned Wednesday, sending further shock waves through the pageant community just days after Miss USA said she would relinquish her crown.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.