Barriers galore when it comes to making the jump from renting to home ownership

Renters face so many hurdles when it comes to making the leap to home ownership.

Home prices are too high, interest rates are too much, I don't have a down payment, I don't qualify for financing, I don't make enough money and I can't find what I'm looking for at the price I want to pay.

All of it is outlined in the just-released Royal Lepage 2024 Canadian Renters Report.

Perhaps most shocking is that 25% of renters in BC are spending more than half of their income on rent.

50% is way above the national average of 16% and well above the maximum of 33% that's recommended to keep your life in balance and have enough left over for food, transportation and fun and saving for a down payment, if home ownership is a goal.

One-third of adults are renters.

It's not surprising renters feel the pinch and can't save to buy a home, which are at historically high prices right now.

For instance, in Kelowna the median monthly rent for a typical one-bedroom apartment is $1,900, a two-bed $2,320.

The benchmark selling price of a typical single-family home in the city is $1,015,700, a townhouse $724,300 and a condominium $507,500.

It's tough enough for a renter to cover hefty rent let alone save for a downpayment on a hefty-priced home.

The baseline question for the report asked renters if they considered buying before signing or renewing their current lease.

26% of British Columbians said yes, 72% no.

Of those who considered buying rather than renting, a whole myriad of reasons derailed their dream of home ownership.

The biggest reason for giving up on home ownership right now, at 41% is not having a sufficient down payment.

That's followed by 33% waiting for mortgage interest rate declines, 30% hoping home prices will go down, 22% said continuing to rent allows time to save for a down payment, 20% couldn't qualify for mortgage financing, 15% said the selection of available properties for sale was insufficient and 14% haven't made up their mind about the type of property they want to buy, or the location.

27% of renters in BC plan to buy a home in the next two years.

Of those, 15% plan to do it by just squeaking through with the minimum 5% down payment, 23% home to come up with 10% down, 12% are planning on 15% down and 26% are optimistic they'll have 20% down.

Of those hoping to buy in the next two years, 53% of them plan to do it the old-fashioned way by saving for the down payment with money they've save over years.

46% expect to take advantage of the First Home Savings Account, 29% will use the Home Buyer's Plan by withdrawing a portion of their RRSP (registered retirement savings plan), 16% are hoping for a gift from family and 9% will use an anticipated inheritance.

Of those planning on buying in the next two years, 44% hope to stay in their current city, while 37% will move and 19% don't know yet.

While home ownership is a dream for many, some prefer to rent with no desire to own.

Of those who said they were not planning to buy over the next two years, 34% said renting remains more affordable for them in the short-to-medium term, 22% said their lifestyle is better suited to the flexibility of renting, 23% don't want to take on the responsibilities of maintaining a property, 16% have other priorities such as education and travel and 11% would prefer to invest their money elsewhere such as stocks, RRSPs and tax-free savings accounts.