- 54 per cent of renters in Canada say they plan to purchase a property in the future; nearly one third of whom plan to buy within the next two years.
- Nationally, 28 per cent of renters say they considered purchasing a property prior to signing or renewing their current rental agreement; 40 per cent are waiting for home prices to decline and 29 per cent are waiting for further interest rate cuts.
- More than half of tenants in Canada (52 per cent) spend more than 30 per cent of their net income on rental payments
- Royal LePage stock (TSX:BRE) last traded at C$14.81
This content has been prepared in collaboration with Royal LePage, a third-party issuer, and is intended for informational purposes only.
As interest rates begin to ease and housing inventory grows across Canada, a new survey reveals that more than one in four renters (28 per cent) considered purchasing a home before signing or renewing their current lease. The findings, released by Royal LePage (TSX:BRE) and conducted by Burson, highlight a shifting real estate landscape where affordability is improving—but renters remain cautious and strategic.
The survey, which polled 1,854 Canadian renters, found that while many are eyeing homeownership, a significant portion are holding off for now. Among those who opted to rent instead of buy, 40 per cent said they are waiting for property prices to decline, 29 per cent are hoping for further interest rate reductions, and 28 per cent are renting to save for a down payment.
Waiting in the wings
Despite current hesitations, more than half of renters (54 per cent) say they plan to buy a home in the future. Sixteen percent aim to do so within the next two years, while 21 per cent are targeting a purchase within two to five years. However, 31 per cent of renters say they have no plans to buy at all. Among them, 53 per cent cite insufficient income to afford homes in their desired neighborhoods, 40 per cent say renting is more affordable, and another 40 per cent prefer to avoid the responsibilities of homeownership.
Rental prices easing, but affordability still a challenge
Rental prices, which surged in 2022 amid rising mortgage costs, have been on a downward trend in recent months. According to the latest National Rent Report by Rentals.ca and Urbanation Inc., the average rent for a one-bedroom unit in Canada dropped 3.6 per cent year-over-year to $1,857 in May 2025. Two-bedroom units saw a 4.6 per cent decline, averaging $2,225.
Still, affordability remains a pressing issue. Rents are 5.7 per cent higher than two years ago and 12.6 per cent higher than three years ago. Over the past five years, average asking rents have increased by 4.1 per cent annually outpacing wage growth.
The financial strain is evident: 37 per cent of renters spend between 31 per cent and 50 per cent of their net income on rent, while another 15 per cent spend more than half. To cope, 40 per cent have cut back on groceries, 30 per cent have reduced savings contributions, 21 per cent are accumulating credit card debt, and 20 per cent have taken on second jobs or side hustles.
Policy and the path forward
Housing affordability remains a top concern for Canadians and a key focus for the newly elected federal government. Promised measures include boosting housing construction, simplifying development approvals, and offering financial incentives like GST breaks for first-time buyers.
When asked which policies would most improve rental affordability, 56 per cent of renters supported building more affordable housing, 47 per cent favored stronger tenant protections, and 42 per cent called for stricter rent control.
The survey, conducted online between June 2 and June 9, 2025, included a robust sample from major cities and provinces across Canada. While the data offers valuable insights, it is based on a non-probability sample and does not carry a margin of error.
As the housing market continues to evolve, renters across Canada are weighing their options carefully balancing hope, strategy, and financial reality in their pursuit of homeownership.
Royal LePage is a provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide.
Royal LePage stock (TSX:BRE) last traded at C$14.81.
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Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.
