One-third of Canadian renters say they have no plans to buy a home, according to a new national report. This finding comes even though rental costs have started to fall—since May, the average rent for a one-bedroom unit dropped by 3.6% to about $1,857, and by 4.6% to around $2,225 for a two-bedroom. Still, these rents remain much higher than they were a couple of years ago, growing faster than most people’s wages.
Many renters are struggling with rising housing costs. Among those who say they don’t plan to buy, the top reason—cited by over half—is not having enough income to afford a home in the area they want to live. At the same time, some say renting is still cheaper than owning, while others simply don’t want the extra responsibilities that come with owning a home, like repairs and maintenance. For many, choosing to rent isn’t just about money—it’s about how they want to live.
Still, more than half of renters say they do want to buy a home someday. Of those, some are hoping to purchase in the next two years, while others expect it will take between two and five years. But wanting to buy doesn’t mean it’s realistic right now—many are waiting things out and putting their plans on hold.
When asked if they thought about buying instead of renewing their lease, just over a quarter of renters said yes. But among that group, most decided to wait for prices to fall even more, or for interest rates to come down. Some also said they chose to keep renting so they could save more money for a down payment. It’s clear that even renters who want to buy face big challenges.
Experts say that while prices have dipped from recent highs, rents are down slightly, incomes are up, and borrowing costs have improved in some of the most expensive cities. But historically, home values tend to rise by about five percent each year—meaning the longer people wait, the more likely it is that homes will get even less affordable.
So while a third of renters have ruled out homeownership, the rest are still hoping to make it happen. But with high prices, rising costs of living, and strict lending rules, even the hopeful are moving slowly. Many are choosing to wait—but waiting too long could cost them their chance.