What's behind the growing disillusionment?
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A growing number of Canadians aged 18 to 44 are giving up on the dream of homeownership, with many no longer viewing it as a realistic goal in their lifetimes, according to a survey by Easy Home Renovation. The study reveals that, across the country, most younger Canadians feel that owning a home is out of reach due to a combination of high rents, soaring mortgage rates, and limited housing supply.
While there are some pockets of optimism in provinces such as Quebec, Newfoundland and Labrador, Saskatchewan, Nova Scotia, and Alberta, where more than 30% of young adults still believe they will own a home one day, the sentiment is much bleaker in other regions. Less than 20% of individuals in Ontario and British Columbia hold this hope, with Vancouver showing particularly stark results, where only 6% of young people think homeownership is achievable.
The report attributes this “disillusionment” to several factors, including the continued rise of rents, high mortgage rates that remain well above pre-pandemic levels, and rapid population growth. Furthermore, the shift towards condominium developments in major cities instead of single-family homes only adds to the challenges faced by potential homeowners.
According to a report from the Financial Post, a closer look at the data reveals that optimism is nearly absent in most cities across Canada, with Regina showing the highest rate of belief in homeownership at 46%. In contrast, cities like Vancouver see a drastic dip.
Housing crisis reshapes life goals
The housing crisis has begun to reshape life priorities, with 63% of Millennials still seeing homeownership as a key life goal, though this figure drops to 53% among Gen Z. Additionally, 27% of Millennials and 26% of Gen Z respondents have altered their family plans in response to the housing situation.
In response to the crisis, the federal government unveiled a plan in April aimed at creating 3.87 million new homes by 2031. The strategy includes $15 billion in loans for apartment construction and extended mortgage amortization periods to 30 years, in an attempt to address the country’s housing shortage.
Despite these efforts, many young Canadians are sceptical, with many blaming the government for failing to resolve the affordability issue. The survey indicates that 33% of Millennials and 36% of Gen Z believe the government is at fault for the lack of housing supply, while other contributing factors include insufficient income, rising interest rates, and increased immigration.
“This widespread finger-pointing toward national policy and economic realities indicates that younger Canadians overwhelmingly view housing affordability less as an individual failing and more as a systemic issue,” the report said.
This widespread dissatisfaction suggests that young Canadians are increasingly viewing housing affordability as a systemic issue rather than an individual problem. With the possibility of a federal election on the horizon, many are unsure whether a change in government would lead to significant improvements in housing affordability.
While 42% of Millennials believe a Conservative government could offer solutions, only 30% of Gen Z share this view, with many expressing doubts that any political shift could fundamentally address the housing crisis.
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