Home Ownership in Canada: Are You Among the 33% Who Believe They Never Will?

Buying a home has always been a dream for many Canadians—but for a growing number, that dream now feels out of reach. Soaring prices, higher mortgage rates, and stretched savings timelines have made homeownership seem nearly impossible, especially for younger generations. According to recent surveys, 1 in 3 Canadian non-homeowners say they don’t believe they’ll ever be able to buy a home. That’s a stark reality that reveals just how much pressure our housing system is under.

But here’s the thing: while the numbers might look grim, there are still viable pathways to homeownership. Let’s unpack the current state of the market, what’s changed in buyer sentiment, and how you can still move forward even when the odds seem stacked against you.

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Where Home Ownership in Canada Stands in 2023

Canada’s homeownership rate hit a peak back in 2011 at 69%. Since then, it has declined to 66.5% as of 2022. That drop may seem small, but it speaks volumes about a market that has become increasingly tough to enter. The biggest shift? It’s generational. In 2011, 44% of Canadians aged 25-29 owned a home. A decade later, that number fell to just 36.5%.

Meanwhile, rental demand is surging as younger Canadians delay or give up on homeownership altogether. In a country where owning property was once seen as a guaranteed part of adulthood, today’s reality is much more complicated.

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To-Be Canadian Homeowners Are Losing Confidence

A recent report revealed that 33% of Canadian non-homeowners no longer believe they will ever own a home. That’s nearly double the number recorded at the end of 2021 (18%). The most impacted? Millennials and young adults.

• 27% of Canadians aged 35-54 say they don’t see homeownership in their future.
• Even younger Canadians (18-34) are showing signs of pessimism, with 13% already counting themselves out.

What’s causing the shift? It’s not just high prices. Rate hikes by the Bank of Canada since early 2022 have also made monthly payments harder to manage. In fact, 14% of recent first-time buyers say they struggle with mortgage payments even after getting help from their families for a down payment.

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What Type of Mortgages Are Canadians Choosing?

In today’s climate of rising rates, most Canadians are playing it safe.

• 69% of borrowers now choose fixed-rate mortgages, up 3% from last year.
• Variable-rate mortgages account for only 25%, and of those, nearly a third are considering a switch to fixed.

This shift highlights a growing concern about financial stability and predictability, especially among younger and first-time homebuyers who can’t afford big surprises in their budgets.

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So How Many Canadians Actually Own Homes?

Ownership levels are slipping, especially for younger buyers.

• In 2011, 69% of Canadians owned homes.
• By 2022, that dropped to 66.5% overall.
• Among Canadians aged 25-29, ownership fell from 44% to 36.5% over the past decade.

These numbers may sound discouraging, but don’t lose hope just yet.

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nesto’s Expert Advice: Homeownership Is Still Possible

At Mortgage.Expert, we’re big believers in turning pessimism into a plan. You don’t need to give up on your dream—you just need to approach it differently. Here are a few realistic ways to start making progress:

1. Start Saving Where It Counts

The First Home Savings Account (FHSA) launched in April 2023 allows you to save up to $40,000 tax-free toward your first home. It combines the benefits of both RRSP and TFSA. If you’re eligible, this is one of the most powerful tools out there for new buyers.

2. Know What You Can Afford

Use a pre-qualification tool or affordability calculator to set expectations early. If the numbers don’t work yet, use that info to work backward: reduce your debts, explore ways to increase your income, and identify your savings gaps.

3. Shop Smart and Compare Lenders

This isn’t the time to go with your bank just because it’s convenient. Compare rates, fees, and terms. Working with a mortgage broker can often open doors to better offers you won’t find on your own.

4. Explore Creative Buying Options

Consider:

• Co-buying with friends or family
• Using rental income from a basement suite
• Getting gifted down payments from parents
• Buying in smaller cities or towns where prices are lower

You don’t have to follow a traditional path to get there.

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FAQs

Q: How many Canadians own homes today?
A: As of 2022, about 66.5% of Canadians owned their homes. The rate was higher in 2011, peaking at 69%.

Q: What’s the best way to start saving for a home?
A: Open a First Home Savings Account (FHSA), which lets you grow savings tax-free and withdraw without penalties for a down payment.

Q: I feel like I’ll never be able to buy. Should I even try?
A: Yes—but start with a realistic plan. Explore your options, talk to a mortgage advisor, and don’t assume it’s out of reach. Many homeowners felt the same way before finding the right strategy.

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Final Thoughts: You Might Be Closer Than You Think

We get it—the numbers aren’t exactly uplifting. But it’s also true that many of today’s homeowners once thought they couldn’t do it either. Whether it’s using new tools like the FHSA, getting help with a down payment, or simply starting with a smaller property in a more affordable area, there are paths forward.

At Mortgage.Expert, we’re here to help you find yours.

Ask Anything About Mortgages from our expert advisors today. You might be closer to owning your first home than you think.