Renters face so many hurdles when it comes to making the leap to home ownership.
Home prices are too high, interest rates are too much, I don't have a down payment, I don't qualify for financing, I don't make enough money and I can't find what I'm looking for at the price I want to pay.
All of it is outlined in the just-released Royal Lepage 2024 Canadian Renters Report.
Perhaps most shocking is that 25% of renters in BC are spending more than half of their income on rent.
50% is way above the national average of 16% and well above the maximum of 33% that's recommended to keep your life in balance and have enough left over for food, transportation and fun and saving for a down payment, if home ownership is a goal.
One-third of adults are renters.
It's not surprising renters feel the pinch and can't save to buy a home, which are at historically high prices right now.
For instance, in Kelowna the median monthly rent for a typical one-bedroom apartment is $1,900, a two-bed $2,320.
The benchmark selling price of a typical single-family home in the city is $1,015,700, a townhouse $724,300 and a condominium $507,500.
It's tough enough for a renter to cover hefty rent let alone save for a downpayment on a hefty-priced home.
The baseline question for the report asked renters if they considered buying before signing or renewing their current lease.
26% of British Columbians said yes, 72% no.
Of those who considered buying rather than renting, a whole myriad of reasons derailed their dream of home ownership.
The biggest reason for giving up on home ownership right now, at 41% is not having a sufficient down payment.
That's followed by 33% waiting for mortgage interest rate declines, 30% hoping home prices will go down, 22% said continuing to rent allows time to save for a down payment, 20% couldn't qualify for mortgage financing, 15% said the selection of available properties for sale was insufficient and 14% haven't made up their mind about the type of property they want to buy, or the location.
27% of renters in BC plan to buy a home in the next two years.
Of those, 15% plan to do it by just squeaking through with the minimum 5% down payment, 23% home to come up with 10% down, 12% are planning on 15% down and 26% are optimistic they'll have 20% down.
Of those hoping to buy in the next two years, 53% of them plan to do it the old-fashioned way by saving for the down payment with money they've save over years.
46% expect to take advantage of the First Home Savings Account, 29% will use the Home Buyer's Plan by withdrawing a portion of their RRSP (registered retirement savings plan), 16% are hoping for a gift from family and 9% will use an anticipated inheritance.
Of those planning on buying in the next two years, 44% hope to stay in their current city, while 37% will move and 19% don't know yet.
While home ownership is a dream for many, some prefer to rent with no desire to own.
Of those who said they were not planning to buy over the next two years, 34% said renting remains more affordable for them in the short-to-medium term, 22% said their lifestyle is better suited to the flexibility of renting, 23% don't want to take on the responsibilities of maintaining a property, 16% have other priorities such as education and travel and 11% would prefer to invest their money elsewhere such as stocks, RRSPs and tax-free savings accounts.
