IG Wealth Management Housing Affordability Study: Housing Market Continues Straining Homeowners, Hits Renters Hardest

• 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

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