For many Canadians, the dream of homeownership feels more out of reach than ever. Prices keep climbing, interest rates are high, and competition is fierce. You might feel like you’ve been doing everything right — saving diligently, cutting expenses, getting pre-approved — and yet, every time you think you’re ready, the market jumps ahead again. It’s easy to feel defeated and wonder if buying a home is still possible.
But being priced out of the market today doesn’t mean you’ll never own a home. It simply means it’s time to pivot your strategy, think creatively, and use the market’s challenges to your advantage. In this article, I’ll show you practical steps to move forward — from adjusting your buying criteria to building wealth in alternative ways until you’re ready to jump back in. If you apply these tactics, you’ll stay on track toward homeownership, even when it feels like the market has left you behind.
1. Adjust Your Expectations — Without Compromising Your Goals
One of the biggest mistakes I see buyers make is holding onto rigid expectations. If your dream home is a detached house in downtown Toronto, but your budget says otherwise, it’s time to adjust. That doesn’t mean giving up; it means rethinking what your “first step” looks like.
Start by looking into more affordable property types. A condo, townhouse, or smaller home in an up-and-coming neighbourhood can help you get into the market and start building equity. For example, I had clients who initially aimed for a detached home in Richmond Hill but shifted to a three-bedroom townhouse in Stouffville. Five years later, they sold with significant equity and upgraded. Sometimes, the smartest move is starting small and trading up.
2. Expand Your Search Beyond Major Urban Centres
If the market in your desired city is pricing you out, consider nearby communities that are more affordable yet growing in value. Cities like Oshawa, Barrie, and Guelph have become popular with buyers who are priced out of Toronto, offering lower price points and strong future appreciation.
Commuter towns are gaining traction, especially with more Canadians working remotely or in hybrid settings. If you’re flexible on location, you could find yourself in a less competitive market with room for growth. And don’t forget: public infrastructure improvements — like new GO Train lines or highway expansions — often boost home values in these surrounding areas, turning them into smart investments for buyers willing to be strategic.
3. Start Building Wealth with Pre-Construction or Investment Properties
Even if you can’t afford to buy the home you’ll live in right now, you can still get into the market as an investor. Pre-construction condos often require smaller deposits spread out over time and give you a few years to save before the final closing. This allows you to lock in pricing and benefit from appreciation while continuing to build your financial foundation.
Alternatively, consider buying an income property or partnering with friends or family. One client of ours purchased a duplex in Hamilton with their sibling, lived in one unit, and rented out the other. This setup not only reduced their living costs but also allowed them to build equity faster. Remember, getting into the market in any capacity is better than sitting on the sidelines while prices climb.
4. Strengthen Your Financial Profile for When the Market Shifts
Markets are cyclical. What feels impossible today could change dramatically in the next 12 to 24 months. But you need to be ready when that window opens. Use this time to strengthen your financial profile. Pay down high-interest debt, increase your savings, and build your credit score. The stronger your financial health, the more competitive you’ll be when prices stabilize or interest rates drop.
According to Equifax Canada, buyers with a credit score over 760 not only qualify for better rates but also have access to more flexible mortgage products. Plus, a higher down payment can make a significant difference in affordability. If you’re already saving, consider setting automatic transfers and increasing contributions when possible. If you receive bonuses or tax refunds, direct them straight into your down payment fund. Every step you take now brings you closer to being ready when the opportunity arises.
5. Stay Educated and Work with Experts Who Can Pivot with You
The real estate market changes fast. What feels out of reach today could shift as rates stabilize or prices adjust. Instead of stepping back entirely, stay engaged. Keep researching, attend open houses, and stay connected with a knowledgeable real estate team.
An experienced agent or team, like The Tar Team, will help you track market trends, identify overlooked opportunities, and pivot your strategy when needed. One of our clients nearly gave up after losing out on multiple offers. But by staying connected and trusting our guidance, they ended up purchasing a property in Pickering just before prices surged in that area. They not only bought their home but saw instant equity growth. The key is not stepping away from the market — it’s about staying informed and ready.
Conclusion
If you’re feeling priced out, take heart — you’re not alone, and you’re not stuck. The smartest buyers are the ones who pivot their strategy, build their financial strength, and look for creative ways to enter the market. Whether that means adjusting your location, buying smaller, investing in pre-construction, or partnering with others, there are paths forward.
At The Tar Team, we specialize in helping buyers who feel blocked by market conditions. We’ll show you real options, provide expert market insights, and build a plan tailored to your goals and budget. Contact us today and let’s turn “priced out” into “ownership on the horizon.”