Photo: James Bombales
As housing affordability continues to deteriorate in Canada’s largest cities, many industry watchers have wondered if Millennials might give up on the dream of homeownership, at least for now. But according to a new survey, that’s not the case at all.
Nearly one in three Canadian Millennials are planning to buy a home in the next two years, according to a new study from private insurance provider Genworth Canada and the Canadian Association of Credit Counselling Services, released today.
“Over the next two years…30 per cent of Millennials plan on making their first home purchase, making them the engine of the real estate market,” reads the study.
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That’s 7 per cent higher than the 23 per cent of Canadians looking to buy a primary residence in 2018, according to a recent survey from BMO. The 30 per cent figure also mirrors the findings of Zoocasa’s 2018 Housing Trends Report, which found that 84 per cent of Millennials surveyed felt that owning a home was an important life milestone.
“Homeownership remains a coveted goal for many Canadians,” reads the Zoocasa report. “However, achieving this perceived life milestone remains as challenging as ever in 2018, as increasing home prices and a rising interest rate environment present obstacles to ownership.”
Over half of Millennials surveyed in a recent report by Nanos Research Corporation on behalf of the Ontario Real Estate Association (OREA) indicated that homeownership is unaffordable in their neighbourhood.
“The dream of home ownership is slipping away from an entire generation of young people,” writes OREA CEO Tim Hudak, in a statement. “Nearly half of Ontarians between the ages of 25 and 34 are still living at home with their parents. We need to take action to address this problem.”
The OREA/Nanos survey also found that 58.7 per cent of non-Millennial Ontarians agree or somewhat agree that homeownership is unaffordable in their neighbourhood, while 41 per cent listed saving enough for a downpayment as the most important barrier to owning a home.