Toronto Residents Lack Confidence in Future Homeownership Ability
Seven in Ten Torontonians (70%) Concerned Rising Home Prices Will Prevent Them from Being Able to Afford the Home They Want
TORONTO, Feb. 24, 2020 /PRNewswire/ -- For residents of Canada's largest city, Toronto, it is no secret that the housing market presents challenges. According to a recent Zillow and Ipsos survey, Torontonians confidence in their ability to own the home they want is on the decline due to rising home prices. For buyers, 77% are concerned they can't afford the home they want, up four points from 2018. More than two thirds (68%) of sellers are concerned they can afford the home they want, an increase from 55% in 2018.
Toronto is also the city most likely to be perceived to be in a housing bubble. More than eight in 10 (84%) of Torontonians think that the Toronto housing market is in a bubble, with inflated housing prices, and at risk for a correction. This perception drops significantly amongst Torontonians for other Canadian cities with 61% for Vancouver and far fewer thinking Victoria (18%), Montreal (13%), Ottawa (10%), Whistler (9%), Calgary (8%), or Edmonton (6%) are experiencing housing bubbles.
Nearly all Torontonians (94%) identified barriers to owning a home. Toronto residents report a number of things that concerned them in the home buying process -- the most common among them is coming up with a down payment (66%). Other barriers cited include high monthly mortgage payments (61%), qualifying for a mortgage (56%), debt (49%) and lack of job security (44%).
Despite perceived barriers in the Toronto market, many Torontonians (83%) still value home ownership as a good investment, an increase from 79% in 2018. This is stronger than the national average of 76%.
Navigating a challenging market may be why many Torontonians consult real estate professionals as part of their searching, shopping or purchasing journey. More than nine in ten sellers (91%) and 86% of buyers consulted a real estate agent or broker. The challenges may also contribute to Torontonians taking more private home tours than Vancouver residents, an average of 6.1 tours compared to 4.5 tours for Vancouver shoppers.
This all could also contribute to a longer home search for Toronto residents. Nearly four in ten (39%) spend four months or more searching for a new home, with seven percent spending one year or more.
About the Study
These are some of the findings of an Ipsos poll conducted between September 24 and October 8, 2019, on behalf of Zillow. For this survey, a sample of 1,503 Canadians aged 18+ (including 821 Toronto CMA residents) was interviewed online via the Ipsos I-Say panel. Quota sampling and weighting were employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.9 percentage points, 19 times out of 20, had all Canadian adults been polled. Results from the Toronto CMA sample are accurate to within ±3.9 percentage points, 19 times out of 20. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
About Zillow
Zillow® is transforming how people buy, sell, rent and finance homes by creating seamless real estate transactions for today's on-demand consumer. Zillow is the leading real estate and rental marketplace and a trusted source for data, inspiration and knowledge among both consumers and real estate professionals.
Zillow's proprietary data, technology and industry partnerships put Zillow at nearly every major point of the home shopping experience, helping consumers search for and get into their new home faster. Zillow now offers a fully integrated home shopping experience that includes access to for sale and rental listings, Zillow Offers®, which provides a new, hassle-free way to buy and sell eligible homes directly through Zillow; and Zillow Home Loans, Zillow's affiliated lender that provides an easy way to receive mortgage pre-approvals and financing. Zillow Premier Agent instantly connects buyers and sellers with its network of real estate professionals to help guide them through the home shopping process. For renters, Zillow's innovations are streamlining the way people search, tour, apply and pay rent for leased properties.
In addition to Zillow.com, Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered in Seattle.
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SOURCE Zillow
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