Limited mobility and rising costs deepen affordability crisis despite strong ownership ambitions
Canada’s housing market is showing signs of stagnation, with most homeowners opting to stay in place, tightening supply and making it harder for first-time buyers to break in, according to new data.
Findings from a March 2026 survey of more than 1,500 adults reveal that 58% of Canadians own their homes, while 34% rent and 7% live with family or friends. Ownership continues to skew toward older and higher-income households.
But beneath those figures lies a growing affordability challenge. Nearly half (46%) of respondents to the CPA Canada poll say that homeownership is becoming harder to achieve, and only 3% believe it remains widely accessible. One in four respondents also view housing as overpriced.
Supply and demand mismatch
A key issue is the lack of movement within the housing market. More than half of homeowners (55%) plan to remain in their current property, while only a small share are considering upsizing.
“This suggests a housing market that is increasingly stuck, with many homeowners holding onto starter homes longer than expected,” says CPA Canada’s chief economist David-Alexandre Brassard. “Limited movement is reducing turnover and slowing overall market activity.”
Among homeowners considering a change, 61% say they are effectively sidelined; either waiting for prices to improve or facing financial constraints tied to selling. High housing costs (28%) and expectations of better pricing conditions (24%) are among the most cited obstacles.
Downsizing trends are also weaker than expected with only 19% of those aged 55 and older planning do so, adding more friction for would-be first-time buyers.
The research also highlights a disconnect between buyer preferences and new housing supply. While many people still aspire to traditional housing types, construction trends are not keeping pace.
“About half of non-homeowners aspire to single-family homes or townhouses, yet these types of dwellings account for only about one-third of new construction,” says Brassard. “Condos are less popular, with just 15 per cent of non-homeowners naming them as their preferred option, and fewer than one in 10 Canadians viewing a starter home or condo as a viable first step.”
Among non-owners, about 40% say they would prefer a single-family home, while roughly one quarter have no plans to buy at all, particularly older Canadians and those with lower incomes. But overall, the desire to own remains strong overall. Nine in 10 Canadians either already own a home or hope to do so in the future.
Financial pressures
However, as affordability pressures mount, financial support and shared living arrangements are becoming increasingly important pathways into the market.
Half of homeowners report relying on personal savings for their first down payment, but younger buyers are more likely to depend on inheritances or family assistance. Overall, nearly 60% of homeowners received some form of financial help, with about one-third receiving more than $50,000.
At the same time, cost-sharing is widespread. Around 62% of Canadians share housing expenses, rising to 71% among homeowners.
“The path to homeownership increasingly depends on factors beyond income alone,” says Li Zhang, financial literacy leader at CPA Canada. “With high home prices and slower wage growth, especially among younger Canadians, many rely on financial support or cost sharing to make a purchase possible. Without that support, entering the market becomes significantly more difficult.”
The survey findings reflect a housing system under strain, where limited mobility, persistent affordability challenges, and structural mismatches between supply and demand are compounding barriers for prospective buyers.
