Despite roadblocks, most young Canadians still see homeownership as a worthy goal

Gen Z’s homeownership attitudes

Among those that don’t own a home currently, 75% of Gen Zs say they plan to do so within their lifetime.

Of the 84% who believe it's worthwhile, the sentiment is strongest in Saskatchewan and Manitoba (94%) as well as Atlantic Canada (93%).

For many young Canadians, the aspiration to own real estate is rooted in the desire for long-term housing security. Approximately 73% of the next generation of homebuyers say they desire a permanent place to live that is their own, while 57% say that owning a home provides stability.

Another 45% say that renting is restrictive due to tenant-landlord policies, and 32% say home ownership is a key part of their retirement plan. Royal LePage notes that respondents were able to select more than one answer to this question.

Respondents in Quebec are the most optimistic, while those in Ontario are the least.

Just over half (58%) who say they don't believe in, or are unsure about their ability to own a home, say that their household will not earn enough income to support the monthly costs of home ownership. Unfortunately, 52% say they do not have a large enough down payment saved up, and probably never will.

Of those who say they believe home ownership is achievable, when asked why, 45% say that they are saving diligently and feel confident that they will have enough savings in the near future to make a home purchase. Thirty-one percent say they are on a career trajectory that will earn them a high income and therefore provide them with enough savings to buy a home, while 26% say that they and their spouse have a high enough combined household income to afford a future home purchase.

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Planning for the future

Nearly half (40%) say that their timeline to buy a property is within the next five to 10 years, while 25% say they are planning to purchase a home more than 10 years from now. Buoyed by the prospect of lower borrowing costs, 18% say they plan to purchase a home within the next three years, and another 13% plan to buy in three to five years.

To reach their goal of home ownership, 47% of those planning to purchase say they are regularly saving a portion of their earnings for a down payment, while 42% say they are diligently paying their loans and bills to ensure a good credit rating and 34% say they are reducing their discretionary spending in an effort to save more. A third of respondents are living with family and saving for a down payment, paying little to no rent.

Many milestones in life have been delayed or cancelled in order for young Canadians to save for a home. This means 27% have delayed or eliminated travelling in order to save, while 21% have delayed, or decided not to make, smaller but meaningful purchases, such as buying a car. Another 21% have delayed moving out of their parents' homes; 17% have delayed or eliminated living on their own; 14% have delayed or eliminated starting a family; and 11% have delayed or eliminated saving for their retirement.

"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," said Soper.

"If policy makers 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."

Royal LePage enlisted Hill & Knowlton, which used the Leger Opinion online panel to survey 2,280 Canadians, aged 18 and over from July 22 to 31.