May 6, 2025
“I don’t think I’ll ever own a home.”
That’s the reality for half of Canadians — and two-thirds of millennials — who now see homeownership as a dream slipping out of reach. With recession fears rising and interest rates stuck in uncertainty, more and more working Canadians are stepping back from the housing market entirely.
Advertisement
According to BMO’s latest Real Financial Progress Index, 50% of Canadians believe owning a home is even less attainable than it was in 2024. For many, the optimism around saving for a down payment or finding a stable interest rate has eroded.
"Canada's housing market remained under pressure heading into the spring, with sales and prices both weakening further," said BMO Capital Markets’ Senior Economist, Robert Kavcic, in a recent statement. "There is some clear underlying weakness as inventory builds and investors remain absent. Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of BC and Southern Ontario."
Read More: Where to find the best mortgage rates in Canada
Rates are ruling the market
Interest rates continue to be a massive barrier. More than two-thirds of would-be Canadian homeowners say current rates are a deal-breaker, and 2 in 5 are waiting for rates to fall below 3% before making a move.
Even worse, 44% of Canadians admit they don’t even know what rate they’d be comfortable with to buy or refinance — suggesting that uncertainty, not just affordability, is holding people back.
As a result, more than half of prospective homeowners feel they missed their moment to buy a home, although more than half of aspiring homeowners still hoping to get into the real estate market are now considering a move to a different provice or country in order to increase their chances of buying an affordable home.
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
“We missed our chance”
For many millennials, the window to buy a home feels like it closed when they weren’t looking. Two-thirds of them feel they’ve already missed their opportunity.
Still, 59% of Canadians say owning a home is one of their biggest life goals. But compared to five years ago, confidence in achieving that goal has dropped sharply — especially among younger generations.
Rethinking the plan
With the economy in flux, Canadians are reimagining what homeownership even looks like. Nearly half are open to buying a home with friends or extended family. Gen Z and Millennials are leading the charge toward shared ownership models.
Advertisement
A significant portion of current homeowners (43%) say they needed financial help from family to make their purchase. More than a quarter of today’s buyers expect the same.
On the flipside, older Canadians many are beginning to accept their role in helping their adult children or grandchildren into the housing market. According to the BMO survey, more than a third (39%) plan to financially help their adult children or adult grandchildren to buy a home — and among these about 5% plan to help by contributing to the required down payment and 4% plan to contribute to their family's First Home Savings Account (FHSA).
While some still push toward ownership, others are stepping away. Almost two-thirds of Canadians say they’re comfortable renting and don’t feel pressure to buy — especially among Gen X and boomers. Over half see renting as a more flexible option in today’s economy.
Read More: How to buy a house in Canada
Survey methodology
The BMO Real Financial Progress Index survey was conducted by Ipsos in Canada between March 3 to 26, 2025. The survey polled a sample of 2,500 adults aged 18 or older. To account for recent changes in the economic situation, certain questions were asked again of a sample of 2,001 adults aged 18 and older between April 17 to 20, 2025.
— with files from Romana King
You May Also Like
- Here are 6 simple ways to avoid the stress of living paycheque to paycheque, according to Suze Orman
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
