Housing Affordability in Canada: 2021 RE/MAX Report

elitere | Jul. 23, 2021

Originally posted to the RE/MAX Blog

One in three Canadians considering “workarounds” to buy a home amidst declining housing affordability in Canada, supply shortages.

  • Of those Canadians who are considering alternative ways to become homeowners, 54% are Millennials and Gen Z
  • 15% of Canadians reported they were able to grow their savings during the pandemic and plan to use these funds as a down payment on a home in the next six to 12 months
  • Winnipeg and Regina continue to be two of the more affordable markets in Canada year-over-year, with an average selling price below $350,000
  • St. John’s tops the list of most affordable cities in 2021, with an average selling price at $307,619
  • 45% of Canadians agree that a national housing strategy would improve their ability to own a home

In a new report exploring housing affordability in Canada in 2021, RE/MAX found that one in three (33%) Canadian homebuyers is exploring alternative options to help them get a foot into the housing market. These include renting out a portion of a primary residence (21%), pooling finances with friends or family to purchase a home (13%) and living with like-minded neighbours in a co-op/shared living arrangement (7%).

According to a Leger survey commissioned by RE/MAX, 42% of Canadians said the high price of real estate was a barrier to entry into the market. This is up just 4% over last year – surprising, given the consistent price growth experienced by housing markets from coast to coast over the past year. Among prospective homebuyers, millennials and Gen Z are most likely to consider alternative regions and communities, and/or financing options to keep affordability in play.

Key barriers impacting personal housing affordability in Canada, according to consumers:

  • a shortfall in salary (26%)
  • the fear of rising interest rates (18%)
  • the fear of being “house poor” (18%)
  • lack of steady full-time employment (16%)
  • current levels of household debt (11%)
  • the mortgage stress test (11%)

Housing Affordability Index

RE/MAX Canada analyzed house price to income ratio by city in Canada. Here’s how they ranked:

  • This field is for validation purposes and should be left unchanged.