While the vast majority of Gen Z Canadians and young millennials believe that homeownership is a worthwhile investment, only around half believe it is a goal they can achieve in their lifetimes, according to a new survey from Royal LePage.
The 84% of Canadians aged 18 to 38 that believe homeownership is a good investment are led by respondents in Saskatchewan and Manitoba, 94%, and Atlantic Canada, 93%.
Among those who do not currently own a home, 74% consider homeownership a priority, with 54% believing it is an achievable goal.
While those in Quebec are below the national average of believing home ownership is a worthwhile investment, residents of that province are the most likely to believe that owning a home in their lifetime is achievable, with 64% of Quebecers feeling that way. Conversely, fewer than half of Ontarians, 47%, believe they will one day own a home.
Phil Soper, President and CEO of Royal LePage, said that the findings show that young Canadians are finding practical ways to tackle affordability barriers.
“It’s not surprising that young buyer hopefuls see immense benefits in home ownership,” said Soper. “They are hyper-focused on saving for a down payment, which is often the biggest hurdle buyers face. And, they are open to creative solutions, such as shared ownership with friends and family, or buying a property with the express intention of renting a portion of the home to a tenant.”
The research noted that the average home price in Canada was $824,300 halfway through 2024, making saving for a down payment take longer than it did for previous generations.
Housing affordability in Canada previously reached an all-time low in Apr. 2024.
Among those who don’t own a home, 75% of young Canadians are planning to purchase a property within their lifetimes.
Those who said they won’t own homes have various reasons. 58% of those who said they won’t or are unsure whether they’ll own a home say it’s because their household income cannot support the costs of homeownership.
An additional 52% said that they don’t have enough saved for a down payment and never will. Respondents were able to select various answers to the question.
Those who believe homeownership is a realistic part of their future also had various reasons for making the claim. For example, 45% said that they are saving diligently and will soon have enough savings to purchase a home. Additionally, 31% said that their income is high enough to set them on a path to soon purchase a home. 26% said that they were planning to combine incomes with their spouse to afford a home.
Young Canadians are willing to make sacrifices to reach their dream of homeownership.
Almost half, 45%, of those planning to purchase a home said they are considering buying a property with a rentable aspect to offset their mortgage costs.
While nearly half, 47%, of respondents said they will not receive financial assistance from a family member, 32% said they will receive financial support from family to purchase their first homes.
Young Canadians are also making cuts to fulfil their goals of homeownership.
Over one in five said they have eliminated travelling, and over one in five have decided not to make other meaningful purchases like cars. Another 21% of respondents said they have delayed moving out of their parents’ homes, and 17% have eliminated or delayed living on their own. A lesser 14% have delayed starting a family, and 11% have delayed or eliminated saving for their retirement to afford a home.
“In pursuit of home ownership, many young people are not only pausing small daily indulgences but also making compromises that impact their long-term financial stability,” said Soper. “If policy makers needed yet another example of the impact of our nation’s chronic housing supply crisis on the financial security and well-being of young people, this is it.”
A previous Statistics Canada report highlighted that Canadians were fleeing the country’s most expensive cities, like Vancouver and Toronto, for cheaper alternatives like cities found in Alberta.
The survey results aligned with a previous poll and survey that showed that 80% believed owning a home in Canada was only for the rich and that 76% of Canadians said the housing market felt out of reach.