As Canadians’ household debt ratio climbs higher, single Canadians that are interested in purchasing a home on their own are not the ones to blame for the increase. According to a RE/MAX survey conducted by Leger, although 26 per cent of respondents are interested in purchasing a home on their own, nearly half (43 per cent) have less than $5,000 in debt, making it less than likely that debt is impacting their decision to purchase a home.
For more than half of single Canadian respondents (52 per cent), the reason they’re unwilling to buy a home at this time comes down to economic uncertainty and expensive home prices. Meanwhile, 81 per cent of singles that are interested in purchasing a home say they have the ability to do so and finance a property on their own. Thirty-seven per cent of respondents said they will use a loan or mortgage, while 35 per cent already have the savings available to make the down payment.
“It’s concerning to see qualified buyers showing hesitancy toward home ownership. Price and economic factors aside, the additional unnecessary layers of government intervention have left many feeling pushed out of the market, or uncertain of it,” said Christopher Alexander, executive vice president, RE/MAX of Ontario-Atlantic Canada, in a press release.
Thirty-eight per cent of single Canadians who are interested in buying a home agree that it is a good investment, especially for those living in urban regions (51 per cent). Meanwhile, 27 per cent of respondents agreed that the decision to purchase a home is widely hinged on the fact that they will have more flexibility in their living space.
“Purchasing a property alone often reaps great long-term benefits from an investment perspective,” added Elton Ash, executive vice president, RE/MAX of Western Canada. “There is a great opportunity for asset growth, particularly as home prices continue to increase in cities like Toronto and Vancouver, pushing the average sales price up in all surrounding regions as well.”
The survey also found that 12 per cent of single buyers are most interested in purchasing a single-detached home over other property types. Men are twice as likely to say they are considering purchasing a home on their own, as 37 per cent agree, compared to 17 per cent of women surveyed. The survey also found that single Canadians living in urban areas are more hesitant to purchase a home on their own, compared to singles in suburban regions, due to high home costs (48 per cent, compared to 43 per cent).