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A recent Bank of Canada (BoC) survey reveals a significant decline in Canadian renters' intentions to purchase homes within the next year. In the first quarter of 2025, only 16.1% of renters planned to buy a home, marking a sharp 9.9 percentage point drop from the previous quarter—the steepest quarterly decline since the BoC began tracking this data. This downturn is attributed to heightened economic uncertainty stemming from ongoing trade disputes and an impending federal election, leading many renters to postpone homeownership plans.​

The rapid decrease in home-buying intentions mirrors a similar trend observed in 2022, when affordability issues—driven by soaring home prices and rising interest rates—deterred potential buyers. However, the BoC notes that such sentiments can rebound swiftly if conditions improve. While recent reductions in home prices and interest rates have made buying more appealing, current valuations remain high, and prevailing economic anxieties may continue to suppress buyer confidence in the near term.​

This shift in sentiment underscores the challenges within Canada's housing market, where affordability and economic stability play crucial roles in influencing buyer behavior. As renters adopt a cautious approach amidst uncertain times, the housing sector may experience a temporary slowdown in demand, awaiting more favorable economic conditions to rejuvenate buyer interest.

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