Waning affordability has become a top concern
As many as seven out of 10 Canadians who do not own a home worry about saving up for one, according to a new survey by Manulife Bank.
The anxiety is especially pronounced among 39% of those polled, with this contingent saying that they worry “a lot” over their home ownership prospects.
Fully 75% of respondents who do not own homes said that they want to enter into home ownership, but are unable to afford to do so. Another 67% worry about housing prices in their current locales, “suggesting they believe they might have to move to another community if they decide they want to buy a new home,” Manulife Bank said in its report.
Waning affordability has become a top concern, with 33% of current home owners admitting that they needed help from their parents in their first-home purchases. The affordability crunch was particularly felt by Gen-Z-ers (47%) and millennials (46%).
Read more: How is the focus on housing affecting Canadians’ spending power?
“With the housing market pricing many Canadians out of the market, younger generations are forced to turn to their parents to close the gap,” said Rick Lunny, president and CEO of Manulife Bank. “Although this can be an effective short-term solution, it can actually be exacerbating the problem.”
As for those who already own homes, 61% said that their household costs have increased over the past year, while a scant 7% reported lower costs. Manulife said that this might indicate that, on average, income levels are unable to keep up with inflation.
A vast majority (85%) of those who have young children expressed grave concerns about the future of housing affordability, especially once their children are ready for home ownership.
