About 60 per cent of those surveyed said they do not plan to purchase a property in the next two years.
About 45 per cent of Quebec tenants say they spend more than 30 per cent of their net income on paying their rent, according to a new survey from Royal LePage.
The survey released last week indicates that about 60 per cent of those surveyed do not plan to purchase a property in the next two years.
Half of them said they believe they have insufficient income to buy in the neighbourhood they want. And 27 per cent argue that renting remains more affordable in the short and medium term.
But the survey highlights that the cost of rent takes up a significant part of a household’s budget.
Just under a quarter of respondents said they spend between 31 and 40 per cent of their after-tax income on their rent. Another 16 per cent say they spend between 41 and 50 per cent of their salary, while eight per cent devote more than half of their income to it.
The Financial Consumer Agency of Canada recommends that rent and housing expenses not exceed 35 per cent of a household’s gross income.
According to the survey, just under a third say they use between 21 and 30 per cent of their income for rent, and only 11 per cent of respondents said they allocate less than 20 per cent.
Among those who responded that they had considered buying rather than renting before signing or renewing their lease, 37 per cent indicated that they did not have a sufficient down payment. This encouraged them to remain tenants.
Forty-two per cent said they were waiting for a reduction in real estate prices.
Langevin said she is seeing more intergenerational households purchasing property together.
“Sometimes I see a family buying a multiplex; the parents take the ground floor and the children are on other floors. It’s fun because it’s mutual aid and a common budget. So, purchasing power is a little more important.”
Renters who told surveyers they intended to buy within two years were asked how much they planned to save for a possible purchase. Only 25 per cent said they planned to save 20 per cent or more of the value of a property as a down payment.
Furthermore, 40 per cent of tenants planning to purchase a property in the next two years believe they will be able to stay in their current city at the time of purchase, while 36 per cent do not believe they can afford it financially.
The survey was conducted by the firm Hill & Knowlton on behalf of Royal LePage between June 7 and 10.