Canada's youth remain committed to home ownership, viewing it as a key investment despite financial hurdles
Canada’s next generation of homebuyers, comprising generation Z and young millennials aged 18 to 38, view real estate as a valuable long-term investment.
According to a Royal LePage survey by Hill & Knowlton, 84 percent of these Canadians believe home ownership is worthwhile despite ongoing affordability challenges.
Among those who do not currently own a home, 74 percent consider home ownership a priority, with 54 percent believing it is achievable. However, 26 percent are unsure, and 20 percent doubt their ability to purchase a home.
Royal LePage president Phil Soper highlights that young buyers are approaching these challenges with practicality and focus. They are well-informed about the real estate market and government programs that assist young families.
Many are saving diligently for a down payment, the most significant hurdle for buyers, and are open to creative solutions like shared ownership or renting part of their home.
The desire for long-term housing security drives many young Canadians toward home ownership.
Seventy-three percent want a permanent place to call their own, 57 percent believe owning a home provides stability, 45 percent find renting restrictive due to tenant-landlord policies, and 32 percent see home ownership as part of their retirement plan.
Despite barriers, 75 percent of young Canadians who do not own a home plan to purchase one in their lifetime. Soper notes that while borrowing costs have decreased, housing prices remain high due to supply shortages.
Still, this generation remains committed to home ownership and optimistic about achieving their goals.
For those uncertain about their ability to buy a home, 58 percent cite insufficient household income, and 52 percent do not believe they will save enough for a down payment.
On the other hand, 45 percent of those confident in achieving home ownership credit diligent saving, while 31 percent rely on future high incomes, and 26 percent believe their combined household income will be sufficient.
Young buyers are making sacrifices to achieve their home ownership goals. Forty percent plan to buy a home within the next five to ten years, 18 percent within three years, and 13 percent within three to five years.
Nearly half (47 percent) are regularly saving for a down payment, 42 percent are maintaining good credit, and 34 percent are cutting discretionary spending. Additionally, 30 percent are living with family to save on rent.
To afford a home, 45 percent of young buyers consider purchasing a property with rental income potential, and 31 percent would opt for a rent-to-own program.
While parental financial support is common, 47 percent of young buyers expect no assistance, and 32 percent anticipate some help from family.
High real estate prices are causing young Canadians to delay significant life milestones. Twenty-seven percent are postponing travel, 21 percent are delaying smaller purchases like cars, and 21 percent are putting off moving out of their parents’ homes.
Other delays include living independently (17 percent), starting a family (14 percent), and saving for retirement (11 percent).
The federal government has introduced policies to help first-time buyers, including 30-year amortizations for insured mortgages on new construction homes. These measures aim to make home ownership more affordable, especially in expensive markets.
Regional insights reveal varying levels of optimism across Canada. In Ontario, 82 percent of young adults see home ownership as a valuable investment, with 73 percent planning to buy a home.
In Quebec, 81 percent consider it worthwhile, and 71 percent plan to purchase a home, with Quebecers showing the highest confidence in achieving this goal. In British Columbia, 83 percent view home ownership positively, and 77 percent plan to buy a home.
Young Canadians remain determined to achieve home ownership, despite challenges. Their commitment, financial planning, and willingness to make sacrifices reflect a generation focused on securing long-term housing stability.
