Buyers Putting Plans on Hold

Compared to a year ago, borrowing costs are lower, home prices are correcting, and most markets have shifted to more favorable buying conditions. Still, buyers remain on the sidelines, and according to a new Zoocasa Canadian homeowner survey, it may be a long while before they return.

To better understand Canadians’ outlook on today’s housing market, we surveyed approximately 1,000 Zoocasa readers to gain insight into their future housing plans, real estate preferences, and overall economic concerns. 

Of the 42.1% of respondents who said they planned to buy a home in the near future, 59% indicated they would wait a year or longer. A further 23.3% of respondents said they planned to wait 7-12 months before making their home purchase, indicating widespread caution among prospective buyers. 

And it’s unlikely that further interest rate cuts will bring a full revival to the market either. When asked if the Bank of Canada’s decision to lower interest rates has had a positive impact on their interest in real estate, the top answer was neutral, with 38.1% of respondents. 

Still, 24.7% and 18.1% of respondents agreed or strongly agreed that lower interest rates have had a positive impact on their interest in real estate. While interest rates play a small role in influencing buyer decisions for some, others are likely waiting for further rate cuts before making any moves. 

Another factor that could be holding prospective buyers back is the down payment. While nearly half of respondents (46.2%) said they have saved over $50,000, 15.1% reported having only $1 to $5,000 saved — a far cry from the average down payment of $42,987 (based on the April 2025 national average home price of $679,866). 

It’s not just the high cost of a down payment that limits some buyers, but the timeline required to save for it. For the 26.8% of prospective buyers who have saved for a down payment in less than one year, homeownership may be well within reach. But for the 17% who have been saving for over a decade, buying a home represents years of financial sacrifice and discipline. 

A majority of homeowners (53.8%) agree that there aren’t any neighbourhoods in their city that are reasonably priced anymore. This sentiment may be prompting buyers to look elsewhere. 

When asked if they would consider living in a secondary city (ie. London, ON or Fredericton, NB) instead of a major metro area to save on costs, 26.3% said they were actively considering it. Another 13.5% of respondents said they were open to the idea but would need to do more research.  

However, these buyers may not be open to venturing too far outside of Ontario and British Columbia. Less than 10% of respondents had researched housing costs in Atlantic Canada or the Prairies for affordability, while 46.9% reported being focused on housing costs in other regions. 

Canadians overwhelmingly answered that affordable and stable housing options have the most significant impact on their overall quality of life (52.6%), followed by community safety and security (22.4%), and proximity to work/school/essential services (11.7%). 

So, if housing affordability continues to tighten, what does that mean for Canadians’ quality of life? It’s no surprise that perceptions of Canada’s real estate market are becoming increasingly negative.

In fact, 36.8% of respondents said that, compared to other countries, Canada’s housing market is much less affordable, while 30.3% said it was somewhat less affordable. Just 2.6% said Canada’s housing market was far better than that of other countries.

One reason Canadians may feel this way is because detached home prices have soared in recent years. For example, from May 2020 to May 2025, the average price of a detached home in the Greater Toronto Area (GTA) climbed by 37.9% to $1.4 million. 

As a result, 38.1% of respondents said that owning a detached home is not feasible for the average buyer. Additionally, 25.1% said that owning a detached home requires significant compromises, and 21.3% said that detached homes have become completely out of reach. 

So what can improve affordability for Canadian home buyers? Survey respondents said cheaper housing options (35.2%), higher income (32.2%), and lower interest rates (19.4%) would make them feel more confident about affording a home in today’s market. 

If you had $10,000 to spend after buying a home, would you use it on a kitchen remodel or new appliances? According to our survey results, most respondents wouldn’t do either. Instead, energy-efficient upgrades topped the wish list, with 48% of respondents saying they’d prioritize improvements that reduce energy costs. 

In comparison, just 19.9% of respondents would opt for a kitchen remodel, followed by new appliances (12.1%), bathroom remodel (10.9%), and art/decor (5.2%). 

For homeowners preparing to sell, these preferences offer valuable insight into which upgrades may add the most appeal. With buyers increasingly focused on long-term savings and sustainability, investments in solar panels, smart thermostats, or improved insulation could boost your home’s value more than cosmetic changes.

And with 35.3% of respondents citing housing as the rising cost they’re most concerned about, energy-efficient upgrades aren’t just appealing — they’re practical. By reducing heating and cooling bills, these improvements can help buyers save in the long run and make your home stand out in a competitive market. 

If you have questions about your local real estate market, give us a call! We can help you prepare and plan for your future real estate goals. 

Methodology:

The Canadian homeowner survey was conducted between January 30, 2025, and April 28, 2025. Approximately 1,000 Zoocasa blog readers and newsletter subscribers across Canada were surveyed. The survey consisted of 39 multiple-choice questions to learn about the current real estate outlook of Canadians. The margin of error is roughly 2%.