Survey finds younger Canadians sacrificing more to save for a home
A new survey finds that despite affordability issues, Gen Z and younger Millennial Canadians are reducing spending and building credit in the pursuit of home ownership.
On Thursday, Royal LePage released survey results that found 84 per cent of Canadians between 18-38 view homeownership as a “worthwhile investment.” Additionally, 74 per cent of respondents who do not own a home indicated that home ownership is a priority.
Among those with a goal of homeownership, 54 per cent believe it is achievable, 26 per cent indicate they are unsure and 20 per cent do not believe it is achievable. The survey found respondents in Ontario were the least likely to believe home ownership is possible, with Quebec giving the most optimistic responses.
Phil Soper, president and CEO of Royal LePage, said in a press release that it is “not surprising” that younger potential buyers see “immense benefits” from owning a home.
“What is both surprising and promising in these findings is the practical and purposeful manner in which these people are tackling affordability barriers,” he said.
“They are well educated on the state of the real estate market and the wide variety of government programs put in place to assist young families find homes. They are hyper-focused on saving for a down payment, which is often the biggest hurdle buyers face.”
Soper added that many are “open to creative solutions” to own a home, which includes shared ownership arrangements or renting part of their home to a tenant.
According to the press release, 47 per cent of respondents who plan to purchase a home indicate they will not receive financial assistance from family.
The survey also found that in order to purchase a home, 47 per cent of respondents said they are “regularly saving” a portion of their income to put toward a down payment.
“Forty-two per cent say they are diligently paying their loans and bills to ensure a good credit rating, and 34 per cent say they are reducing their discretionary spending in an effort to save more,” the press release said.
Additionally, 30 per cent of respondents said they are living with family to save for a down payment.
According to the press release, younger Canadians are having to take more aggressive steps toward saving for a home, which include delaying major life milestones.
“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. This includes sacrifices like delaying education and retirement savings, and putting off other major investments,” Soper said.
“If policymakers 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.”
Methodology
The survey was conducted by Hill & Knowlton using the Leger Opinion online panel to survey 2,280 Canadians over the age of 18. Survey results were taken between July 22 and 31. Respondents were born between 1986 and 2006.
This article was first reported by BNN Bloomberg
