Canadians' struggles towards homeownership are not limited to skyrocketing housing costs, according to a study by RE/MAX.
The study found that only 38% of Canadians think that the high price of real estate is the biggest obstacle preventing them from buying a home. For around one in four, the most significant hurdle is their salary, which hugely affects how they save for a down payment.
On the other hand, roughly 17% said their fears of inflating interest rates keep them from breaking into the market.
To overcome these hurdles, Canadians are increasingly adopting the co-ownership trend with their friends and family. This has become common in hot markets such as Vancouver and Toronto.
"In Toronto, factors such as the OSFI mortgage stress test, listing shortages, rising prices, and saving enough for a down payment are cited as preventing buyers from purchasing property," the study said.
Given this scenario, buyers in Toronto target condominiums, which are supposedly the more affordable option. However, the increasing demand has made the condominium market more competitive, boosting the prices.
Vancouver buyers have a similar experience. Despite the recent decline in house prices in the region, buyers still find themselves unable to enter the market due to the impacts of the mortgage stress test and the taxation policies.
In other regions like Brampton and Edmonton, a typical practice to attain homeownership is for two families to share a single-family dwelling.
The study found that the most affordable markets in Canada are Winnipeg, Regina, and Halifax.