A recent survey reveals younger Canadians are saving for homes over weddings, focusing on stability
According to a survey by Houseful, a real estate technology platform owned by the Royal Bank of Canada, younger homebuyers are increasingly prioritizing homeownership over other significant life milestones.
According BNN Bloomberg, the survey found that 78 percent of single and unmarried first-time homebuyers under 30 are focusing on saving for a mortgage rather than spending on a more expensive wedding.
This trend is also present among those over 30, with 70 percent prioritizing saving for a home over wedding expenses.
Karen Starns, CEO of Houseful, stated in a press release that “younger adults are increasingly conscious of ongoing housing affordability challenges, which motivates them to secure a financially stable future by seizing saving opportunities earlier.”
Starns noted that once these young buyers enter the housing market, they gain the flexibility to pursue other life milestones that matter to them.
The survey also highlighted that 40 percent of first-time homebuyers under 30 consider homeownership a critical goal within their five-year plan.
To achieve this, 72 percent of respondents in this age group are setting aside a portion of their monthly income for a home, with 24 percent saving more than 15 percent of their earnings. Additionally, 74 percent are cutting back on dining out and shopping to bolster their savings.
In comparison, only 47 percent of first-time buyers over 30 are allocating part of their income toward purchasing a home, and 61 percent of this group are reducing discretionary spending.
Starns emphasized the uniqueness of each person’s path to financial stability, but also pointed out the promising trend among younger first-time homebuyers, who are making significant efforts toward long-term financial planning early in their adult lives.
