The dream of homeownership is alive amongst younger Canadians according to the latest Scotiabank Housing Poll.
Despite more than half of Millennials( 55%)and Gen Z (58%) feeling that buying a home is unattainable, a majority (58%) of Canadians aged 18 to 43 are still determined to purchase a home within the next five years, said the poll.
“With the economic environment continuing to evolve, including a decrease in interest rates for the first time in over four years, over half of Millennials and Gen Z (56%) still report the current economy is negatively impacting their finances causing many to delay their home-buying plans. Concerns about the impact of the economy on home-buying plans have grown since 2021 (+12%), particularly among older Canadians (+16%), with affordability concerns among younger Canadians (18-34) remaining steady over the years. Despite this concern and the fact that homeownership has declined amongst younger Canadians (18-34) in recent years, this cohort’s long-term plans to buy a home remain largely unaffected,” said Scotiabank.
Tracy Gomes
“Canadians continue to face barriers in today’s challenging housing market. While homeownership may feel out of reach for many young Canadians, their determination to achieve it remains unwavering,” said Tracy Gomes, Senior Vice President of Real Estate Secured Lending at Scotiabank. “With the overwhelming amount of information available, especially for first-time and recent homebuyers, we at Scotiabank are here to support our clients with our tailored financial advice and tools to help them achieve their dream of homeownership.”
Some other key findings in the poll:
- When it comes to those who have already purchased homes, many younger Canadians are fast approaching mortgage renewal. Nearly three-quarters (72%) of Gen Z homeowners and half (48%) of Millennial homeowners will be renewing their mortgage for the first time, compared to only 14% of Gen X homeowners and 10% of Boomer homeowners;
- In spite of declining interest rates, this remains a major concern for 68% of Canadians across generations, especially those renewing their mortgages, with 44% prioritizing a competitive rate when choosing a mortgage;
- 37% of Gen Z and 31% of Millennials have moved up their home-buying plans given an improved financial standing over the past year, much higher than the 15% of Gen X and 10% of Boomers;
- Gen Z places the highest importance on the ability to complete the entire mortgage application process online (35% vs. 5% for Boomers).
- Over a quarter of Millennials and Gen Z (27%) report lacking confidence in understanding the steps needed to buy a home, higher than the 15% of Boomers.
- 63% of Gen Z and 54% of Millennials are looking for clearer and more accessible information from their financial institutions on the homebuying and mortgage process.
Millennials are typically defined as those born between 1981 and 1996. Generation Z, or Gen Z, includes individuals born from 1997 to 2012. Generation X includes individuals born between 1965 and 1980. Baby Boomers are those born from 1946 to 1964.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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