New Poll Reveals Growing Public Support for Lower Home Prices

A slim majority of Canadians believe that reducing home prices is more important than keeping them stable, but most still feel that housing affordability is unlikely to improve in the next five years, according to a new poll.

 

The survey, conducted for The Globe and Mail by Nanos Research, found that 52 per cent of Canadians said reducing prices was necessary, while only 35 per cent felt prices should be kept stable. Thirteen per cent of respondents were unsure.

 

The study also found that 68 per cent of Canadians had a negative view of whether housing would be more affordable in five years. It’s a modest improvement from October, 2023, when 81 per cent of respondents had a negative view.

 

Nik Nanos, founder of Nanos Research, said the slight improvement in people’s outlooks was likely based on a fixation on high interest rates among the Canadian public in 2023. Today, lower interest rates and a slight downturn in prices may have improved people’s opinions.

 

Carolyn Whitzman, senior housing researcher and adjunct professor at the University of Toronto’s School of Cities, said it was noteworthy that 47 per cent of people aged 55 or older also wanted housing prices to decrease. She didn’t expect so many older Canadians to feel that way, especially compared to 51 per cent of people aged 35-54 and 59 per cent of 18-34 year olds wanting the same outcome

 

“I was surprised that the gradient between 55-plus and 18 to 34 was not as steep as I would’ve expected,” said Ms. Whitzman.

Toronto home sales increased in July as prices continue steady decline

 

She said the responses represent an “emerging consensus” that house prices need to fall. She noted that roughly two-thirds of Canadians own a home, meaning many people believe prices should come down, despite the fact that it would hurt their finances.

 

Mr. Nanos said older Canadians likely support a drop in real estate prices because they see how much trouble their own children or grandchildren have affording a home.

 

“It’s counterintuitive to some people’s self interest, but maybe it shows that not all Canadians who are homeowners are completely mercenary,” he said.

 

“If you’re in the market, you probably remember the price you paid for a home compared to how much you were making in income, and you could understand that right now we’re in a dysfunctional market.”

 

Federal Housing Minister Gregor Robertson sparked controversy earlier this year when he said that prices should stay stable, rather than drop.

 

While a major drop in home values is unlikely and would be disastrous for the economy, Ms. Whitzman said the best that prospective homeowners can hope for is years of stagnation or slight decreases.

 

However, it would take decades of stagnation for wages to grow enough to a point where housing becomes affordable, Ms. Whitzman said.

 

The hybrid online and telephone poll of 1,034 people across Canada by Nanos Research was conducted between July 31 and Aug. 6, with an accuracy of plus or minus 3.1 percentage points, 19 times out of 20.

 

 

 

 

This article was first reported by The Globe and Mail