by Mo Monsef 
In 2025, Canada’s real estate market is gradually shifting toward buyers, driven by lower interest rates and increased housing supply. But renters are still cautious.
- Interest rates are declining gradually.
- Inventory is increasing in major cities like Toronto, Vancouver, and Calgary.
- Entry-level housing is more affordable than in 2023–2024.
- Despite this, many renters are hesitating due to affordability fears and financial insecurity.
Did Renters Consider Buying Before Renewing Their Lease?
A large portion of Canadian renters thought about buying a home before renewing their lease in 2025, but most didn’t go through with it.
- 28% of renters considered buying instead of renewing their lease.
- This shows increased interest in homeownership among renters.
- However, the majority still chose to rent due to financial limitations or uncertainty.
Why Are Renters Choosing to Delay Buying a Home?
Renters aren’t uninterested in buying; they’re strategically waiting. Reasons include concerns about price, mortgage rejection, and the need to save more.
Top Reasons & Data:
| Reason | % of Renters |
|---|---|
| Waiting for price drops | 40% |
| Waiting for lower interest rates | 29% |
| Saving for down payment | 28% |
| Couldn’t qualify for mortgage | 26% |
| Job/income insecurity | 24% |
When Do Renters Plan to Enter the Market?
Over half of renters intend to buy a property, just not immediately. The majority are planning 2–5 years.
Timeline to Buy:
| Timeframe | % of Renters |
|---|---|
| Within 2 years | 16% |
| In 2–5 years | 21% |
| After 5 years | 18% |
| No plans to buy | 31% |
Why Do 31% of Renters Not Want to Buy a Home?
Affordability and lifestyle flexibility are the top reasons renters don’t plan to buy.
Top Barriers for Non-Buyers:
| Barrier | % |
|---|---|
| Income is too low for the preferred area | 53% |
| Renting is more affordable | 40% |
| Avoiding home maintenance | 40% |
| Prefer flexible lifestyle | 26% |
What Financial Sacrifices Are Renters Making?
A large number of renters are under financial stress. Many are cutting down on essentials or working extra jobs just to cover rent.
Sacrifices Made by Renters:
| Sacrifice | % of Renters |
|---|---|
| Cut spending on groceries | 40% |
| Reduced savings/retirement | 30% |
| Took side job | 20% |
| Credit card debt increased | 21% |
| Skipped medical/dental care | 19% |
What Features Do Renters Want in Housing?
Location and affordability rank higher than luxury or lifestyle perks when it comes to choosing rental homes.
Top Features Ranked by Renters:
| Feature | % Ranked |
|---|---|
| Proximity to transit/work | 43% |
| Price control (rent cap) | 36% |
| Included utilities | 33% |
| Laundry access | 30% |
| On-site parking | 27% |
| Pet-friendly | 24% |
Where Did Renters Move From?
Over one-third of renters had relocated from other cities, provinces, or countries, indicating market fluidity and affordability pressure.
| Relocation Type | % |
|---|---|
| From another city | 22% |
| From another province | 6% |
| From another country | 6% |
Expert Insight from Royal LePage
Royal LePage’s CEO warns that waiting too long could backfire. Historically, Canadian home prices have risen consistently.
Quote:
“Canadian home values have risen ~5% annually over the past 75 years. The window of opportunity may be narrower than it seems.”
— Phil Soper, CEO, Royal LePage
