As affordability trends begin to shift slightly in Canada’s housing market, a significant number of renters remain hesitant, or straight up uninterested, in making the leap to homeownership.
According to Royal LePage’s 2025 Canadian Renters Report, approximately one-third of renters across the country have no plans to purchase a home. While falling rents and softer home prices offer some relief, economic realities and lifestyle preferences continue to shape how Canadians think about buying real estate.
Rent Declines Offer Temporary Relief, But Prices Remain High
Data from Rentals.ca and Urbanation’s May 2025 Rent Report shows a national rent decrease of 3.6% for one-bedroom units (now averaging $1,857) and 4.6% for two-bedroom units (averaging $2,225). This marks the eighth straight month of rental price declines.
Royal LePage CEO Phil Soper attributes this easing to a combination of factors, including:
- Record purpose-built rental and condo completions
- A reduction in international student numbers
“Tenants may now be in a better position to secure rentals with more space, upgraded amenities, or better locations—often at more competitive prices,” said Soper.
Still, the report notes that average asking rents remain 5.7% higher than two years ago and 12.6% higher than three years ago, far outpacing wage growth, which has remained relatively flat.
Why One-Third of Renters Are Giving Up on Buying
Among renters with no plans to buy:
- 53% say their income isn’t high enough to purchase a home in the area they want to live
- 40% say renting is still more affordable than owning
- 40% don’t want to take on the responsibilities of homeownership, such as maintenance
These figures highlight that for a large portion of the population, homeownership remains out of reach or is simply not a desirable lifestyle.
But Over Half Still Hope to Buy
While one-third of renters have opted out of the buying journey, 54% said they still plan to buy a home, with:
- 16% planning to buy in the next two years
- 21% aiming to buy within two to five years
However, barriers remain:
- 40% are waiting for home prices to drop
- 29% are holding out for lower interest rates
- 28% continue renting to save more for a down payment
“The window of opportunity may be narrower than it appears,” said Soper.
“In Canada’s least affordable cities, home prices are down, incomes are up, and borrowing costs are trending lower—but many renters are still choosing to wait.”
Renters Are Cutting Back to Afford Their Monthly Costs
The cost of living continues to impact renters’ budgets:
- 40% have reduced grocery and food spending
- 30% have cut back on savings or retirement contributions
With rent still taking up a large portion of monthly income, often more than the recommended 30% threshold, many Canadians are struggling to balance everyday expenses with long-term financial goals.
What Renters Say They Need From Government
Renters surveyed identified key policy changes that could improve affordability:
- 56% want more affordable housing units
- 47% want stronger tenant protections against unfair rent hikes and evictions
- 42% support enhanced rent control measures
Soper stresses the importance of coordinated action among all levels of government and the private sector to address the affordability crisis.
“There’s no silver bullet,” he said.
“Improving affordability will take increased housing supply, reduced red tape, zoning modernization, and stronger tenant protections.”
Conclusion: The Future of Homeownership in Canada Is Shifting
The dream of homeownership is still alive for many- but for others, it’s no longer the goal. With rents high, wages stagnant, and responsibilities growing, more Canadians are rethinking what home means to them.
As policy changes and market trends continue to evolve, so too will renter behavior. But for now, it’s clear: homeownership is no longer a one-size-fits-all aspiration in Canada’s housing landscape.
📚 References:
One-Third Of Canadian Renters Don’t Have Plans To Buy A Home
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