More than three in four unmarried first-time homebuyers under 30 are focused on owning a home
A recent survey from Houseful suggests that Canadians under the age of 30 are increasingly prioritizing homeownership over other traditional milestones such as marriage. The findings reveal a shift in priorities among younger Canadians, who view owning a home as more important than lavish weddings or even buying a car.
The survey, conducted by Cint between June 27 and July 3, 2024, surveyed 1,000 Canadian adults. Among the respondents, 78% of single or unmarried first-time homebuyers under 30 reported that they are focusing on saving for a home. This contrasts with 70% of those over the age of 30 who prioritize the same goal. Additionally, 40% of respondents under 30 consider homeownership a crucial part of their five-year plan, placing it above purchasing a car (33%), traveling (30%), and getting married (24%).
Long road to homeownership?
Despite the strong desire for homeownership, the path to buying a home remains challenging, according to Global News. Canada’s unaffordable housing market, combined with elevated interest rates, has made it difficult for many young Canadians to enter the market. Although the Bank of Canada has begun to ease borrowing costs, high home prices continue to pose a significant barrier.
A recent Ipsos poll conducted for Global News after the central bank’s June rate cut revealed that 45% of Canadians felt they would never be able to afford a home, regardless of how much interest rates decline. Additionally, 78% of respondents believe homeownership in Canada is a privilege reserved for the wealthy.
There are, however, some signs of improvement in housing affordability. A National Bank of Canada report from last week noted that the second quarter of 2024 saw a slight improvement as borrowing costs fell more than home prices appreciated. This marked the second consecutive quarter of better conditions for prospective homeowners. Yet, the report emphasized that affordability remains hampered by high mortgage costs.
“Looking ahead, falling mortgage interest rates will likely be the main driver for improvements in affordability,” the report noted.
Determination despite market challenges
Despite the challenges, young Canadians remain determined to achieve homeownership. In the RBC survey, 72% of respondents under 30 acknowledged that reports about the state of the housing market make it seem “unattainable.” Nonetheless, 71% still believe homeownership will be an essential part of their retirement plans.
Karen Starns, CEO of RBC’s housing-focused subsidiary Houseful, commented on the survey results, stating that young Canadians view homeownership as a crucial step that offers them the flexibility to pursue other life milestones in the future. The survey also highlighted that 72% of savers under 30 are allocating part of their monthly income towards buying their first home, compared with only 47% of those over 30.
As housing prices continue to climb, a growing number of first-time homebuyers are relying on financial assistance from family members. A separate report from CIBC earlier this summer revealed that 31% of first-time homebuyers received financial support from family during the first half of 2024, compared with 20% in 2015. The average amount of assistance has also risen sharply, reaching $115,000, a 73% increase from 2019 levels.
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