One in three Canadians say the biggest hurdle to homeownership is saving enough for a down payment, according to a new national survey from CPA Canada and BDO Debt Solutions, which reveals the deepening financial strain many are experiencing amid rising living costs and stagnant wages.
The survey highlights how economic pressures are reshaping Canadians' housing prospects, with 32% of respondents identifying down payment savings as their primary barrier to entering the real estate market. An additional 30% cite the ongoing cost of mortgage payments as the main obstacle, while only 10% say they rent by choice due to its flexibility.
Affordability issues are exacerbated by broader financial stress, with 43% of respondents listing the high cost of living as their top financial concern, followed by 14% who are focused on paying down debt—leaving little room to save for a future home. The financial squeeze is especially pronounced for younger Canadians, who are less likely to own property. Only 31% of adults aged 18 to 34 own homes, compared to 63% of those aged 35 to 54 and 74% of those 55 and older.
“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” says David-Alexandre Brassard, Chief Economist at CPA Canada. He notes that steep down payments restrict access to real estate as a wealth-building tool, widening economic inequality and deepening social divides.
The survey also points to shrinking financial safety nets. Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions, says Canadians are increasingly reliant on credit to cover everyday expenses. “The dream of owning a first home is slipping away for many Canadians. With the cost of living on the rise, saving for a home has become increasingly challenging,” she says. “It’s concerning that only two per cent of non-homeowners in Canada are able to make their emergency fund a financial priority.”
The data also underscores the connection between homeownership and financial security. Li Zhang, Financial Literacy Leader at CPA Canada, emphasizes that homeowners are more likely to build long-term wealth and invest in their future. “Homeownership is closely tied to financial stability and wealth accumulation,” she says. “Homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque.”
Indeed, the financial goals of homeowners and renters diverge sharply: nearly half of homeowners prioritize savings, compared to just 12% of renters. Only 4% of renters report any focus on discretionary spending, underscoring how many are simply working to stay afloat.
As the gap between incomes and housing costs continues to grow, affordability remains a key concern across Canada’s housing market. With younger generations finding it increasingly difficult to save or invest, the challenge of entering the real estate market appears less a matter of will—and more a question of economic reality.
