Homebuying Canadians? Slowed Down As Recession Fears Rise

A growing number of Canadians are pressing pause on homebuying plans as economic anxiety deepens, according to BMO’s latest Real Financial Progress Index.

74% of respondents now say they’re concerned about a looming recession, up sharply from 60% just a month earlier. And with affordability worsening, half of Canadians now believe homeownership is even less attainable than it was a year ago.

The share of prospective buyers waiting for rates to fall remains high at 67%, but what’s notable is that 38% are holding out for rates of 3% or lower—levels well below today’s offerings.

“There is some clear underlying weakness as inventory builds and investors remain absent,” said Robert Kavcic, senior economist at BMO. “Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of B.C. and Southern Ontario.”

Buying now feels out of reach for many

The survey reveals a broader shift in buyer psychology:

56% of prospective buyers believe they’ve missed their chance to buy.
66% of Millennials say their window to enter the market has closed.
Only 14% of those planning to buy expect to do so in 2025, while 24% have pushed their timelines to 2026 or later.

The burden isn’t just emotional—nearly half (43%) of homeowners say they couldn’t have purchased their home without financial help from family. Shared ownership is also gaining traction, with 45% open to buying with non-romantic partners like friends or relatives.

Confidence slipping despite tools and support

While 59% still say owning a home is one of their top life goals, two-thirds (66%) feel less confident they’ll achieve that goal compared to five years ago. The shift has been particularly sharp among younger Canadians, many of whom are also willing to consider relocating to another province—or even another country—for affordability.

At the same time, 61% of Canadians say they’re content renting, a sentiment especially common among Boomers and Gen Xers.