Buying a home solo ranks above marriage for youngest adults
Getting married and then buying a first home together might be outdated according to new research.
Most Canadians who are currently renting and took part in a survey by Point2Homes said that they intend to buy a home in the next 12 months, but 42% overall plan to apply for a mortgage alone. That’s the finding for all generations except for older millennials who will mainly apply with their spouse.
Solo living is an increasing trend and the research reflects increased confidence in taking on the responsibility of a mortgage and homeownership without sharing that with a partner.
For the youngest cohort who have likely taken note of the generation above who may have struggled to buy a home, the poll reveals solid action towards their homeownership aspirations with 72% of under 25s set to buy in the next year and 74% having already saved up to $30,000 including 8% who have $100,000 saved.
While more than a third of Gen Zs said they are saving at least 20% of their monthly income, 14% have not saved anything towards a down payment.
Younger millennials are not far behind in the homeownership plans with 57% of the under-35 segment of the generation planning to buy in the next 12 months and 76% having up to $50,000 saved.
Meanwhile, around one third of millennials over 35 are concerned about down payments and high home prices, while Gen X renters (45-54 years old) would consider buying a home on their own but are more concerned than other generations about their credit scores.
Confidence in homebuying ability has been rising this year, with an RBC report in April revealing that 41% of potential home buyers believe they can save enough for a down payment in four years or less.
However, the higher interest rates that have kept buyers on the sidelines for some time now continue to remain a barrier for many Canadians and the housing market has not seen the usual spring activity, although prices continue to rise in many major urban areas.
