It has been nearly one year since Ontario’s provincial government first implemented measures to curb the spread of COVID-19 in March 2020. Since then, buyers, sellers, and renters have adapted to fluctuations in the housing market, some of which were more drastic in certain regions and property segments.
To get a pulse on how home buyers, sellers, and renters in Ontario are recalibrating their housing decisions in the face of COVID-19, Zoocasa surveyed over 2,300 Ontarians between Feb 13 and 22, 2021 on how the pandemic has impacted their real estate choices and outlook.
Our survey findings highlighted that for some home buyers and renters, the pandemic had disrupted their housing plans: some aspiring buyers felt the obstacles from the pandemic set them back 1-5 years while over a third of renters felt they now have fewer rental options within their budget.
Additionally, while Ontarians now place a premium on square footage and green space, they maintained a desire for being in a location that provides easy access to conveniences such as delivery services. What didn’t change is that Ontarians continue to prioritize affordability – and are willing to move further in their search for it.
Over Two-Thirds of Ontarians Felt COVID-19 Caused Suburban Real Estate Prices to Rise at an Unsustainable Rate
With more Ontarians having the flexibility to work remotely since the pandemic began, data in the second half of 2020 showed that buyers were increasingly seeking out properties with higher square footage and green space, often further away from dense city centres.
When polled on how the pandemic impacted property prices, 78% of respondents felt that it caused real estate prices in suburban areas and smaller towns to rise at unsustainable rates.
Zoocasa’s findings also showed that buyer sentiment generally reflects these location-specific trends in market data: nearly a third (32%) of respondents who purchased a property since COVID-19 bought in an area they would not have considered prior to the pandemic.
More specifically, 70% of those home buyers noted that their property is further than they would have previously considered, and over half (53%) highlighted that it was located in a town/city with a smaller population than they would have previously considered. Regardless, 73% of respondents who purchased a home during COVID-19 stated they plan to keep the property once the impact of the pandemic subsides.
A majority (55%) of buyers who purchased a home during COVID-19 stated price as a factor influencing their location choice, followed by the size of a home (41%), and the availability of green space (37%).
Ontarians Prioritized Access to Delivery Services Since COVID-19 Measures
Perhaps unsurprisingly, ongoing stay-at-home orders over the course of the pandemic had made access to delivery services more desirable for Ontarians than before. Specifically, 66% of respondents said being able to receive online deliveries became more important than before; 55% said grocery delivery was now more important and 49% said access to food delivery/takeout was more important.
Similarly, with more people choosing to move further away, personal transportation in the form of a vehicle gained importance in the eyes of respondents. 57% said having a car was more desirable and 39% said having a bicycle was more desirable compared to before COVID-19 measures.
77% of Ontarians Felt Homes Are Less Affordable Since the Pandemic; 54% of Ontarians Said Low Interest Rates Did Not Impact Home Buying Decisions
A large majority (77%) of respondents cited that homes in the city or town they lived in last March are less affordable today than they were then. In fact, 43% of house owners said that they would not be able to afford their home if they had to repurchase it today, while only 28% of condo owners felt the same way. Furthermore, almost a quarter of homeowners felt that real estate market conditions made them consider selling their homes.
In general, half of aspiring buyers (50%) felt that current interest rates had improved housing affordability, but a strong majority (82%) also felt that the current rates played a role in increasing home prices. A majority of aspiring buyers in Ontario (54%) said that recent changes in interest rate levels did not impact their home buying desires, whereas 31% said it made them more interested in buying a home. Further, 57% said current interest rates did not impact their home buying budgets, but nearly 1 in 4 (23%) said they would likely buy a more expensive home now.
55% of Renters Anticipated Staying In Current Rentals Longer Than Planned; 33% of Buyers Would Consider an Income Property to Afford a Home
For Ontarians who currently rent, the pandemic had created new opportunities for some, whereas others felt that it had narrowed their options: 35% felt they have fewer options for rentals within their budget, while 28% felt they have more options now. Nearly 1 in 5 (18%) renters had asked, or planned to ask, their landlord for a rent reduction, freeze, or deferral. Further, a majority (55%) of renters anticipated that they will remain in their current rentals longer than they would have otherwise planned.
Generally speaking, half of aspiring home buyers said that the COVID-19 had added obstacles to their property purchase, with 50% noting that it had set them back between 1-5 years.
When it comes to taking the leap, prospective home buyers are willing to be creative in an effort to realize home ownership. A third (32%) of prospective buyers would consider purchasing a property with a separate, rentable unit to help them afford a home, and nearly 1 in 4 (23%) would take financial gifts from family. Further, 16% would rent out the home or a part of it as a short-term rental, and 16% would take on additional jobs.
Interestingly, while many prospective home buyers would consider income properties to afford a home, attitudes on living in multi-generational housing have not yet shifted in a similar manner. In fact, 27% of respondents said they are now less likely to consider multi-generational housing in the future, and just 14% are more likely to do so.
Methodology
The findings are based on an online survey conducted by Zoocasa between Feb 13 and Feb 22, 2021 of 2,307 respondents in Ontario. A margin of error cannot be assigned because it is an online survey, however, the margin of error for a comparable sample of the same size is plus or minus 2.0 percentage points, 19 times out of 20.
Contact
For more information about this report or to set up a media interview, please contact communications@zoocasa.com
About Zoocasa
Zoocasa is an award winning brokerage that uses data and technology to deliver an intelligent, end-to-end real estate experience to buyers, sellers, and renters in Canada.
Survey Findings At a Glance
Priorities for Home Buyers During COVID-19
- Out of respondents who purchased a property since COVID-19 measures were introduced:
- 32% bought in an area that they wouldn’t have considered prior to COVID-19:
- 70% said their property is further than they would have previously considered
- 53% said their property was located in an town/city with a smaller population than they would have previously considered
- 55% said the price of the home was the main reason they chose this location, followed by 41% who said it was the size of the home, and 37% who said it was the availability of green space.
- 73% plan to keep the new property even once the impact of COVID-19 subsides
- 32% bought in an area that they wouldn’t have considered prior to COVID-19:
Homeowners, Obstacles and Affordability During COVID-19
- Out of respondents who are still planning to buy a home, 50% of respondents feel that COVID-19 added obstacles to their plans
- Out of those who felt obstacles were added, 50% feel COVID-19 has delayed their property purchase between 1-5 years (31% felt they have been set back 1 to 2 years, 19% say 2 to 5 years)
- Out of those who felt obstacles were added, 50% feel COVID-19 has delayed their property purchase between 1-5 years (31% felt they have been set back 1 to 2 years, 19% say 2 to 5 years)
- 78% of all respondents feel COVID-19 caused real estate prices in suburban areas and smaller towns to rise at unsustainable rates
- 77% of all respondents feel that homes are less affordable in the city or town where they lived when COVID-19 measures were first introduced
- 52% of house owners and 46% of condo owners feel that COVID-19 caused a dramatic shift in the value of their homes.
- 26% house owners, 17% condo owners say that real estate market conditions during COVID-19 made them consider selling their home
- Breakdown of homeowners that said they would not be able to afford their home if they had to repurchase it today
- 57% of condo owners
- 40% of house owners
- Aspiring home buyers would consider the following options to help them afford a home:
- 32% purchasing a property with a separate unit that can be rented out (e.g. basement)
- 23% financial gifts from family
- 18% co-ownership with friends or family (excluding a significant other)
- 16% renting out the home or a part of the home as a short term rental
- 16% working additional jobs
Transportation and Lifestyle Preferences
- Respondents who say having access to the following forms of transportation are more desirable since COVID-19:
- Having a car: 57%
- Having a bicycle: 39%
- Being near public transit: 27%
- Respondents who say living in a location that provides them access to the following delivery services are more desirable since COVID-19:
- Ability to receive online deliveries quickly (e.g. from Amazon or other retailers): 66%
- Grocery delivery: 55%
- Food delivery/takeout: 49%
- Respondents who say having access to the following amenities within a 15 min walk/bike/transit ride are more important since COVID-19:
- Parks and green space: 79%
- Grocery stores: 72%
- Pharmacy: 65%
- Doctor’s clinic or hospital: 62%
- Restaurants and shops: 57%
- Schools: 44%
Renters
- 35% of renters do not feel they have better options for properties to rent within their budget since COVID-19 began; 28% of renters feel like they have more
- 55% say will likely stay in my current rental longer than I otherwise would have planned
- Nearly 1 in 5 (18%) renters has asked their landlord for a rent reduction, rent freeze or rent deferral
Interest Rates
For aspiring home buyers:
- 50% agree that low interest rates improved home affordability for buyers
- 82% of respondents agree that low interest rates has driven up homse prices
- Low interest rates and desire to buy property
- 54% said low interest rates made no impact on their desire to purchase a property
- 31% of respondents said it made them more interested in buying
- 9% of respondents said it made them less interested in buying
- 6% aren’t sure
- Low interest rates and impact on home buying budget
- 57% of respondents said low interest rates won’t impact on their home buying budget
- 23% of respondents said they will likely buy a more expensive property
- 12% of respondents said they will likely buy a less expensive property
- 8% aren’t sure
Multi-generational housing
- When asked “Are you more or less likely to consider living in a multi-generational home in the future as a result of COVID-19?” respondents said:
- 46% of respondents said about the same
- 27% of respondents said less likely
- 14% of respondents said more likely
- 13% of respondents said not sure
Additional Infographics
