Canada's Condominium Magazine

66% of consumers want to buy a home in Toronto this year; only 35% believe they can; Toronto’s attainability gap of 31% par with other major cities: Poll data

Although 66 percent of Toronto-area residents aspire to buy a home in Toronto this year, only 35% believe they can. This is according to an extensive poll survey of many cities, conducted by car2go — who naturally also asked the same question of cars.  Jonathan Wycoco, GM for car2go Toronto, explained,

“The purpose of the survey is to determine the difference between the desire to own major assets and the ability for people to actually afford them.  Increasing interest rates and the high absolute cost of buying are big reasons why consumers are turning to sharing economy services like car2go.”

 Unfortunately, in the long term,  there isn’t a “shared ownership” model for homes — unless friends get together to do just that. [See our previous story “Buying a condo with friends: Is it really a good idea?”>>]  At least we can share cars.

 

In a survey of 1800 of various cities (200 per city), 66 % of people who do not own a home want to buy one this year; only 35% believe they can, leaving an "attainability gap" of 31%.
In a survey of 1800 of various cities (200 per city), 66 % of people who do not own a home want to buy one this year; only 35% believe they can, leaving an “attainability gap” of 31%.

 

Savings, investments and home purchase number 1 priorities

Even though 31% said they feel they “can’t” this year, 57% of respondents indicated that their savings, investments and home purchases are their collective top priority. Obviously, for some, who feel they “can” buy this year — 35% according to the poll — this priority will move forward soon. For the remaining respondents, who doubted they could this year, the majority aspire to home ownership in the near term. Whether it remains an aspiration or a realized goal, might depend on markets.

Interestingly, car2go, the car-sharing service, reports rapid growth in the two markets hit with the highest home cost rises — Toronto and Vancouver. Mr. Wycoco, GM of Toronto’s office, said, “As a global company, we are seeing some of our strongest growth and performance in Canada cities, especially Toronto and Vancouver.  Toronto is the most active car sharing city for car2go in the world, and Vancouver follows as one of our biggest markets.”

 

car2go writes: “Toronto is the #1 most active car2go city in the world” car2go.com>>

 

How does Toronto compare?

How does Toronto’s situation — our consumer perceptions — change from city to city? 200 respondents were randomly polled in Canadian cities Toronto, Vancouver, Calgary, and Montreal. U.S. cities polled included Washington DC, Denver, Austin, Brooklyn/Queens, and Seattle. Just looking at the gaps only for Canadian cities — those people who aspire to buy this year but say they cannot —  is highest in Vancouver at 44%, second highest in Calgary, Toronto at 31%. Montreal at 27%.

By far, even including the U.S. cities, the attainment gap was the poorest (highest) in Vancouver at 42%. In order of poorest ranking (to best):

  • Vancouver 42%
  • Brooklyn/Queens 34%
  • Seattle 33%
  • Calgary 32% (which is also the survey average)
  • Toronto and Austin tied at 31%
  • Washington, DC 28%
  • Montreal 27%
  • Denver at 26%

Full survey findings

The key point, from car2go’s point of view, is that the “sharing economy helps consumers bridge the ‘Attainability Gap’ — good news for them. car2go is also a good fit for condo owners who may not have parking. The findings do indicate a “delay intention” with those who find they cannot afford to buy homes this year. yet, it seems clear from the 35% in Toronto who think they can buy in Toronto within a year, that the market is set for an increase in buyer demand.

Overall Findings

  • 66% of consumers hope to purchase a primary home, but only 34% believe they can achieve their goal in the coming year— an attainability gap of 32%
  • 55% of consumers are interested in purchasing a car, but just 46% feel that goal is attainable
  • 52% of survey respondents said that savings, investments and ‘home purchase of primary residence’ are their top financial priorities 

Washington, DC

  • Home attainability gap of 28%
  • 52% of consumers are interested in purchasing a car, but just 49% feel the goal is attainable
  • 48% said that savings, investments and home purchase are their top financial priorities 

Denver

  • Home attainability gap of 26%
  • 73% of consumers are interested in purchasing a car, but just 56% feel the goal is attainable
  • 47% said that savings, investments and home purchase are their top financial priorities 

Austin

  • Home attainability gap of 31%
  • 71% of consumers are interested in purchasing a car, and 60% feel the goal is attainable
  • 57% said that savings, investments and home purchase are their top financial priorities

Brooklyn/Queens

  • Home attainability gap of 34%
  • 48% of consumers are interested in purchasing a car, but just 45% feel the goal is attainable
  • 54% said that savings, investments and home purchase were their top financial priorities

Seattle

  • Home attainability gap of 33%
  • 58% of consumers are interested in purchasing a car, but just 47% feel the goal is attainable
  • 46% said that savings, investments and home purchase are their top financial priorities

Vancouver

  • Home attainability gap of 42% – the largest attainability gap of all cities surveyed
  • 45% of consumers are interested in purchasing a car, but just 33% feel the goal is attainable*lowest in North America
  • 60% said that savings and investments and home purchase were their top financial priorities

 Calgary

 

  • Home attainability gap of 32%
  • 60% of consumers are interested in purchasing a car, but just 49% feel the goal is attainable
  • 60% said that savings and investments and home purchase were their top financial priorities

Toronto

  • Home attainability gap of 31%
  • 52% of consumers are interested in purchasing a car, but just 43% feel the goal is attainable
  • 57% said that savings, investments and home purchase are their top financial priorities

Montreal

  • Home attainability gap of 27%
  • 36% of consumers are interested in purchasing a car, and 36% feel that goal is attainable
  • 44% said that savings, investments and home purchase are their top financial priorities

 

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