- Majority of Canadians believe housing affordability will
worsen in 2025
- One-quarter (24 per cent) predict mortgage rates will
increase this year
- More than half of renters expect their rent will
increase
WINNIPEG, MB, Feb. 11,
2025 /CNW/ - According to findings from
the seventh annual edition of the IG Wealth Management
Financial Confidence Index ("the Study" or "the Index"), the
majority (56 per cent) of Canadians believe housing affordability
will worsen this year.
While economists predict a housing market rebound, Canadians
remain weary that rising costs will continue to put homeownership
further out of reach.
The Index, commissioned by IG Wealth Management ("IG") and
conducted in partnership with Ipsos Canada, found that:
- One-quarter (24 per cent) predict mortgage rates will increase
this year.
- More than half (57 per cent) of renters expect their rent to
increase over the next year.
- Over half (54 per cent) of homeowners are more comfortable
making a major purchase – like a car – compared to a year ago,
versus only 38 per cent of renters.
Canadians' concerns about housing costs are well-founded. As of
November 2024, the average home price
in Canada reached $696,166, marking a six per cent increase from
2023, according to the Canadian Housing Market Report. In some
specific provinces that growth is more striking, for instance
regions like Alberta experiencing
a 19.5 per cent increase in home prices since last year.
"Housing affordability is a persistent concern for Canadians
coast-to-coast," said Alana Riley,
Head of Mortgage, Insurance and Banking at IG Wealth Management.
"With the right mortgage strategy, as part of an integrated
financial plan, financial advisors can help Canadians with a
tailored, long-term solution that will align with their lifestyle
and financial goals, providing them with peace of mind and a sense
of financial security."
Renters Grapple with Mounting Challenges in Today's
Housing Market
In 2024, the average rent for a two-bedroom apartment in
Canada rose by 5.4 per cent to
$1,447, reports the Canada Mortgage
and Housing Corporation. While this is lower than the eight per
cent increase in 2023, affordability remains a challenge,
particularly for new tenants facing significant rent hikes. As a
result, four in ten renters are expecting to downsize or share
living spaces with others, according to the Study.
The Study also shows clear regional differences in housing
affordability, with Quebec hit
hardest. Three-quarters (75 per cent) of renters in the province
expect rent increases this year, compared to the national average
of 57 per cent.
"With support from a financial advisor, Canadian renters can
implement key strategies like developing a detailed budget and
savings plan, establishing an emergency fund and strategies to pay
down debt, all of which can help them better optimize their
cashflow and finances to absorb any increase in their monthly
rent," concluded Ms. Riley.
About IG Wealth Management
Founded in 1926, IG
Wealth Management ("IG") is a Canadian leader in delivering
financial planning with approximately $144
billion in assets under advisement as of January 31, 2025. For more than 95 years, IG has
been focused on improving the financial well-being of Canadians so
they can confidently embrace all of life's possibilities. Through a
network of advisors located across the country, IG provides
approximately one million clients with personalized advice,
comprehensive financial planning, insurance and mortgage services
and professionally managed investment solutions. IG is a
member of IGM Financial Inc. (TSX: IGM), part of the Power
Corporation group of companies and one of Canada's leading diversified wealth and asset
management organizations with approximately $278 billion in total assets under management and
advisement as of January 31, 2025.
For more information, visit
ig.ca.
About the IG Financial Confidence Index
The 2024
results presented in this summary report are from an Ipsos survey
conducted online from September 20th to
October 1st, 2024. A total sample of 2,001 respondents
from across Canada participated in
the survey. Weighting was applied to the total sample by age,
gender, region and education level to ensure that the composition
of the final sample is representative of Canada's adult population according to the
latest census data from Statistics Canada. This survey
has a credibility interval of +/- 2.2 per cent 19 times out of 20, of what the results
would have been had all Canadian adults 18+ been surveyed.
SOURCE IG Wealth Management
