Eight interest rate hikes in less than a year have left thousands of Canadians feeling like homeownership is out of reach for now B次元官网网址� and maybe even forever.
The benchmark rate, which sits at 4.5 per cent and has pushed borrowing costs up, is eating into prospective buyersB次元官网网址� budgets and leaving many stuck in a tight rental market.
Rentals.ca found the average national rent hit $1,984 in February, an almost 10 per cent rise form the same time last year,while the Canadian Real Estate Association said the average national home price totalled $662,437 last month.
From single parents on the hunt for a place to raise their children to millennials just wanting a rental that wonB次元官网网址檛 cost most of their salary, these are stories of how Canadians are being priced out from coast to coast.
B次元官网网址業 didnB次元官网网址檛 end up with a homeB次元官网网址�
Average Saint John home price: $250,664
In New Brunswick, the high interest rates made 29-year-old Lauren Fitzgerald dramatically alter her home-buying plans.
The Saint John-area physician support worker, who works a second job as a waitress, made it her goal in 2020 to buy a house in her nearby hometown of Rothesay. At the time, she moved in with her parents and a year later, with her savings and a $250,000 loan, she began her search.
After nearly two years of weekly open house visits, watching the interest rate double, and the B次元官网网址渉eartbreakingB次元官网网址� experience of being outbid on a 1,000-square-foot home that she had fallen in love with, Fitzgerald decided she had to change plans.
B次元官网网址淚 even went above the asking price on that home, though not by much because I couldnB次元官网网址檛 afford to. But I actually cried over that one,B次元官网网址� Fitzgerald said of the Rothesay home, one of multiple properties she bid on that were sold over asking price.
After that, she began looking into buying land instead.
On March 8, Fitzgerald closed on a 10,900-square-foot lot near some of her favourite hiking spots, right next to the Rothesay home she had lost out on.
B次元官网网址淚 used the money I had saved for a down payment. And hopefully IB次元官网网址檒l be able to get a loan that can build me a nice 1,000 square foot house,B次元官网网址� she said.
B次元官网网址淪o I didnB次元官网网址檛 end up with a home, because as a single woman I couldnB次元官网网址檛 afford to.B次元官网网址�
Fitzgerald said despite the frustration of the experience, she is happy to be moving towards having a home of her own.
B次元官网网址淚B次元官网网址檓 a landowner now. So there was a silver lining for me.B次元官网网址�
B次元官网网址� By Lyndsay Armstrong in Halifax
B次元官网网址業tB次元官网网址檚 just wildB次元官网网址�
Average London, Ont. rent: $1,998
Average London and St. Thomas, Ont. home price: $613,916
For the last two months, Kate Simpson has been looking for a two-bedroom rental apartment for herself and her two children in London, Ont.
The 27-year-old has been staying with her parents since moving to the city with her 10-year-old daughter and four-month-old son after leaving an abusive relationship in Guelph, Ont.
While she once had dreamed of buying a home, Simpson said thatB次元官网网址檚 not currently in the cards.
B次元官网网址淚t would be nice, but the way that itB次元官网网址檚 looking with the economy B次元官网网址� I donB次元官网网址檛 think thatB次元官网网址檚 a possibility, especially in London,B次元官网网址� she said.
Simpson lived in London three years ago, when she paid about $950 in rent for a two-bedroom unit. A similar unit now costs about $1,500 a month, she said.
B次元官网网址淚tB次元官网网址檚 just wild,B次元官网网址� she said. B次元官网网址淓ven having a two-bedroom apartment is like we would be technically underhoused because I would be sharing a room with my son.B次元官网网址�
Simpson, who worked as a personal support worker before getting pregnant with her son, said finding housing for her family would make her feel stable and secure so she can look for a job.
B次元官网网址淗onestly, just to find somewhere safe for my children and I to rest our heads,B次元官网网址� she said.
B次元官网网址淚 would love to just be able to work again and take care of my children in a peaceful place and not feel IB次元官网网址檓 relying on everybody else to do that for me.B次元官网网址�
B次元官网网址� By Maan Alhmidi in Toronto
B次元官网网址楬ow are you going to compete with that?B次元官网网址�
Average Toronto rent: $2,838
Average Greater Toronto Area home price: $1,095,637
Sheeren Anis has run a tech business since 2015, but in recent months, she found herself eyeing a job at Boston Pizza.
B次元官网网址淭hey were like why are you applying for this job when youB次元官网网址檙e overqualified?B次元官网网址� she recalled.
B次元官网网址淏ut thatB次元官网网址檚 just the lay of the land right now.B次元官网网址�
The 30-year-old startup founder, who lives with her parents in Barrie, Ont., was applying for the pizza chain gig because, despite decent savings, she found herself struggling to get into TorontoB次元官网网址檚 rental market. (Anis wonB次元官网网址檛 buy right now because she feels the market conditions arenB次元官网网址檛 right.)
Landlords werenB次元官网网址檛 comfortable renting to someone whose income isnB次元官网网址檛 uniform throughout the year, she said, especially when the heated rental market has more than enough steady earners prepared to offer more cash to snag a place.
B次元官网网址淚f a unit is going for $3,000 a month, one bedroom, one bathroom B次元官网网址� theyB次元官网网址檙e willing to put up $3,500 a month and one-year rent upfront,B次元官网网址� said Anis.
B次元官网网址淗ow are you going to compete with that?B次元官网网址�
On one occasion Anis, decided to make a similar offer only to find out the landlord was out of the country and not prepared to rent their place after all.
In frustration, Anis bought a $7,000 Cartier watch, thinking B次元官网网址渁t least you have an asset on your wrist.B次元官网网址�
B次元官网网址� By Tara Deschamps in Toronto
B次元官网网址業B次元官网网址檓 going to wait until the bubble burstsB次元官网网址�
Average Montreal rent: $1,848
Average Montreal home price: $562,874
Alexandre Lagreou has been thinking about getting into MontrealB次元官网网址檚 real estate market for about four years.
B次元官网网址淚 would love to be able to buy now, but I donB次元官网网址檛 think itB次元官网网址檚 a good idea with what is coming,B次元官网网址� the 33-year-old photographer and urban farmer said.
B次元官网网址淚B次元官网网址檓 going to wait until the bubble bursts.B次元官网网址�
He said he is looking to purchase his first property in the city but is also considering the option of buying further away, in the suburbs, and perhaps even flipping a home.
Lagreou, who rents in MontrealB次元官网网址檚 Mile End neighbourhood, also worries that even if he finds a property within his budget, he will be outbid.
B次元官网网址淲hen I spoke to the real estate agent, she told me that there are still so many bidding wars that the price would be driven up.B次元官网网址�
In order to get into the market, Lagreou said he is now open to the idea of buying with a friend.
B次元官网网址淎lthough my plan was to buy alone, buying with a friend would allow us to have access to something a bit more interesting, like a duplex or triplex.B次元官网网址�
B次元官网网址� By Marisela Amador in Montreal
B次元官网网址業B次元官网网址檓 excited to leave my parentsB次元官网网址� houseB次元官网网址�
Average Calgary rent: $1,862
Average Calgary home price: $521,896
Landon RoettB次元官网网址檚 buying power was significantly reduced when interest rates started climbing last year.
The 27-year-old said his loan approval based on his salary fell to $300,000 from $500,000.
B次元官网网址淭hat has hurt me quite a bit, as well as the understanding of what my payments would look like,B次元官网网址� the digital marketing specialist said.
Roett, who lives with his parents, has been actively looking to buy a two-bedroom condo in downtown Calgary for at least two months.
However, he said itB次元官网网址檚 just been a series of failed competing offers in a high-demand and low-inventory market.
B次元官网网址淚 think I had to manage my expectations on the quality of properties that are out there and what my price point holds for quality,B次元官网网址� he said.
So long as its near his office, Roett is now also looking at one-bedroom units.
B次元官网网址淚B次元官网网址檓 excited to leave my parentsB次元官网网址� house. And that has been the main driver for why IB次元官网网址檓 looking for the place.B次元官网网址�
B次元官网网址� By Ritika Dubey in Edmonton
B次元官网网址榃e decided to move a little bit slowlyB次元官网网址�
Average Vancouver rent: $3,120
Average Greater Vancouver Area home price: $1,219,919
For the past six months, Vancouver lawyer Alex Bres and his wife have been looking to buy a home to accommodate their growing family.
The couple, who have an eight-month-old baby, said their downtown Vancouver rental isnB次元官网网址檛 big enough, nor does it offer the permanency they crave.
They are keeping an eye out to buy a larger property in British ColumbiaB次元官网网址檚 Lower Mainland, one of CanadaB次元官网网址檚 most expensive housing markets.
B次元官网网址淲e decided to move a little bit slowly just to get a sense of whatB次元官网网址檚 available on the market, as well as keeping an eye on what the Bank of Canada is doing in terms of what sort of mortgage rate weB次元官网网址檙e being quoted by various financial institutions,B次元官网网址� Bres said.
As a dual high-income couple, Bres said they have the advantage of biding their time.
B次元官网网址淲eB次元官网网址檙e fortunate to be in a position to afford a home in this market and I know not everybody is in that position,B次元官网网址� he said.
In terms of housing supply, Bres said B次元官网网址渨eB次元官网网址檙e not disappointed by the options available, but at the same time not blown away.B次元官网网址�
The couple is now weighing moving farther out of the city in the hopes of finding something bigger and cheaper, while trying to keep commute times under an hour.
B次元官网网址� By Darryl Greer in Vancouver
Average rental prices came from Rentals.caB次元官网网址檚 latest rent report, which does not include data for Saint John, N.B., and average home sales prices came from the Canadian Real Estate AssociationB次元官网网址檚 February report.
