1 in 3 Canadians say down payments are blocking homeownership

May 6, 2025 — As rent prices outpace inflation and wages lag, one-in-three (32%) Canadians say saving for a down payment is the biggest barrier keeping them out of the housing market, according to a new survey from CPA Canada and BDO Debt Solutions.

Another 30 per cent of Canadians point to the ongoing cost of mortgage payments as their main obstacle to owning a home, while just 10 per cent of respondents say they prefer the flexibility of renting.

What is the main reason you do not currently own a home?

With 43 per cent of all respondents reporting the high cost of living as their top financial challenge—and another 14 per cent pointing to paying down debt—many Canadians are struggling to manage day-to-day expenses, let alone save for a home.

What is currently your biggest financial challenge?

 

Global issues, including trade tensions and the threat of U.S. tariffs, are contributing to what CPA Canada’s Chief Economist David-Alexandre Brassard describes as “weaponized uncertainty,” leaving many Canadians more pessimistic about their financial future than they were a year ago.

“Personal finance doesn’t exist in a vacuum,” says Brassard. “As consumer confidence drops and spending weakens, Canada could face slower economic growth.”

There is a noticeable generational divide in response to the current situation. Political instability is a source of stress for older Canadians, with 14 per cent of those aged 55 and older citing it as a concern. In contrast, only four per cent of younger Canadians, aged 18-24, share this concern. Despite this context, those aged 18-34 remain more optimistic about their financial prospects.

“The financial caution we’re seeing isn’t just about inflation—it’s about uncertainty,” says Li Zhang, financial literacy leader at CPA Canada. “Many Canadians are bracing for worst-case scenarios, adjusting their financial plans to safeguard against potential downturns.”

“The dream of owning a first home is slipping away for many Canadians. With the cost of living on the rise, saving for a home has become increasingly challenging,” says Snedden. “It’s concerning that only two per cent of non-homeowners in Canada are able to make their emergency fund a financial priority, while many are relying on credit to cover their expenses.”

The results also reveal a clear generational divide: while three quarters (74%) of Canadians aged 55 and older own their homes, that number drops to 63 per cent for those aged 35 to 54, and just 31 per cent for Canadians aged 18 to 34.

“Homeownership is closely tied to financial stability and wealth accumulation,” says Li Zhang, Financial Literacy Leader at CPA Canada. “This is reflected in the behaviour of Canadians: homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque. Only four per cent of renters report prioritizing lifestyle spending—most are simply struggling to cover the basics.”

Nearly half of homeowners are focused on savings, compared with just 12 per cent of renters and non-homeowners. In fact, 28 per cent of homeowners say their top financial goal is saving for retirement or long-term investments.

As a homeowner, what is your primary financial goal?

Survey methodology

Leger conducted the 2025 Housing Market OMNIbus online survey from February 7 to February 10, 2025, among 1,590 randomly selected Canadians aged 18 and over.

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For more survey results, information or to request an interview, contact:

Cindy MacDonald
[email protected]