RE/MAX's 2021 report on housing affordability offers numerous insights into issues facing the country's real estate market. The report concludes that over one-third of Canadian are considering alternative methods to entering the housing market - a trend that is due in large part to a housing shortage and a decline in affordability. Of these methods, moving to regions or communities that were more affordable or embracing alternative financing options were identified as popular options amongst buyers.
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2021 Housing Affordability Report - Key Statistics:
- Of the country's major cities, St. John's was the most affordable. Average sales prices there sat at $307,619.
- The housing markets in Winnipeg and Regina continue to be leaders in terms of affordability, with average selling prices that sit below $350,000.
- Of Canadians that were able to grow their savings during the pandemic, 15% plan to use those savings for a down payment in the next 6-12 months.
- 42% of Canadians stated that high housing prices were the main barrier to homeownership (a 4% increase from 2020)
- 45% of Canadians support a national housing strategy, as they believe it would improve their ability to own a home.
- Millennials or members of Gen Z were the most likely to consider different methods of achieving their goal of homeownership.
Toronto-Specific Insights:
Major issues affecting affordability in the region include low housing supply, an expected increase in immigration numbers and a tightening of lending rules. Despite a recent increase in buyer preference for single-family homes, condos continue to be the most affordable choice in Toronto. A defining trend in 2021 has been a rise in the number of buyers relocating to smaller communities outside the core of the Greater Toronto Area - most notably Stratford, London and outer York Region. This is due to the relative affordability of homes in these areas. Due to factors such as continued high demand, a dearth of supply and the presumption that buyers will begin to return en masse to the city, prices in Toronto's housing market are not expected to cool down in the fall and winter of 2021. Our informative guides for buying pre-construction properties can be found under the Resources tab in the top right corner of this page. They will answer common questions such as:- How do I get my down payment?
- Can I use my RRSP for my down payment?
- How can I make the profits from my pre-construction purchases tax-free?
- What type of home or mortgage can I afford?
- Which incentives are available for first-time buyers?
- What is a PDI?
- What are the pros & cons of buying or selling an assignment before closing?
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