We all know there is a critical need for more affordable housing units in our region and a new survey shows we aren’t alone.
The latest poll from the Ontario Real Estate Association (OREA) shows rising interest rates have worsened the housing affordability crisis, but the desire to own a home is growing.
It found that 7 in 10 (69%) non-homeowners stated they ‘really want to own a home’, an increase of 9% from January.
Just 5% identified as ‘someone who would be happy renting forever’, a 17% drop from the start of the year.
However, 95% of respondents agreed that life is more expensive today than it was two years ago, with nearly half reporting they may have to make difficult choices to make ends meet.
The data found that 64% of Ontarians spend over 30% of their household budget on housing.
The survey indicated many families are reducing entertainment or meals out, driving less, and spending less on groceries in order to make ends meet.
OREA President Stacey Evoy says, “It’s clear Ontarians are felling the financial pressures of inflation amid an existing housing affordability crisis. Housing remains a spectrum issue across the province, and we must work together to keep housing affordable and the dream of homeownership within reach.”
The poll found that 82% of respondents say today’s higher mortgage rates are making buying a home more difficult with another 37% stating it will be much more difficult.
Association CEO Tim Hudak says, “Rising rates might mask the problem as prices dip, but lack of supply remains a key issue.”
Hudak notes this lies on both levels of senior government.
To help solve the crisis, Ontario realtors’ have put several ides on the table for consideration:
- Providing further financial relief for young families and millennials, by doubling the current land transfer tax rebate from $4,000 to $8,000, helping first-time buyers afford their first home.
- Revisiting the mortgage stress test to make it more dynamic and responsive to a changing market – currently, homeowners hopefuls must qualify two per cent higher than current rates, or at around 8%.
- Extending the amortization period for CMHC insured mortgages from 25 to 30 years, allowing buyers with less than 20% down to spread their payments out over a longer period of time, reducing their monthly carrying costs.
- Ending exclusionary single-family zoning in high-demand urban areas such as Toronto, allowing for much-needed gentle density and increased supply.
- Utilizing surplus government lands and commercial conversions to increase housing supply and encourage development of transit-oriented communities.
