Despite rising affordability challenges, the majority of young Canadians still view homeownership as a valuable investment, according to a recent Royal LePage survey.
A full 84% of Canadians aged 18 to 34 said homeownership is a worthwhile investment, with even higher percentages in Saskatchewan and Manitoba (94%) and Atlantic Canada (93%).
Of those who don’t currently own a home, 74% said purchasing a home is a priority for them.
“It is not surprising that young buyer hopefuls see immense benefits in home ownership,” said Royal LePage CEO Phil Soper.
However, with high home prices and elevated interest rates, many feel it is increasingly out of reach. Just 54% of those who prioritize homeownership said they believe it’s an achievable goal, with another 26% saying they’re unsure.
“The youngest cohort of homebuyers in Canada have no shortage of barriers on their path to ownership,” Soper added. “Though the cost of borrowing has begun to come down, chronic supply shortages have kept housing prices from dropping, even as demand softened under the weight of high interest rates.”
The survey highlights that 60% of young Canadians who don’t currently own a home plan to purchase one within the next five years. However, financial barriers remain a significant hurdle, with nearly two-thirds citing down payments as the biggest obstacle to homeownership. Despite these challenges, many young Canadians are willing to make sacrifices, such as relocating to more affordable areas or reducing non-essential spending, to achieve their goal of owning a home.
Interestingly, the desire for homeownership among young Canadians is driven by a strong belief in the long-term financial benefits of owning property. Nearly three-quarters of respondents view homeownership as a solid investment, particularly as a means of building wealth over time. This perspective aligns with the broader Canadian belief that real estate is a secure and appreciating asset, even amid market fluctuations.
However, the report also points out the growing frustration among young buyers, many of whom feel priced out of their desired markets. This has led to increased interest in alternative living arrangements, such as co-ownership or purchasing smaller properties. Some young Canadians are also delaying their homebuying plans in hopes that market conditions will eventually improve.
This article was written for Canadian Mortgage Trends by:
