A HUGE number of young Canadians won't get family help to buy a home
Despite Canada’s wild housing market, the majority of the country’s younger generations believe that home ownership is still attainable, and many say they don’t plan on getting any financial help from their families to reach that goal.
That’s according to results from Royal LePage’s 2024 Next Generation of Buyers Demographic Survey.
Royal LePage reached out to 2,280 Gen Z and millennial Canadians aged 18 to 38 (born between 1986 and 2006) to get their thoughts on home ownership.
According to the survey results, 84% of respondents believe home ownership is still a worthwhile investment.
A significant number (51%) of respondents said they currently own a primary residence.
For those who currently do not own a primary residence, a whopping 74% said homeownership was a priority in their lifetime. Of that group, 54% also said that homeownership was still an achievable goal.
How is the next generation planning to afford a home?
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The survey also asked respondents how they were planning to afford their future home.
The majority of respondents (45%) who don’t currently own a property said that they are “saving diligently” and feel confident that they will “have enough savings in the near future to make a home purchase.”
Nearly one-third (31%) said they anticipate their career to make them a “high-income earner” and will provide enough savings to make their first home purchase.
However, 58% who felt unsure or doubtful that home ownership was in the cards said it was because they “will not earn enough to support the monthly costs” including mortgage, insurance, property costs, and maintenance.
Moreover, it appears that owning a home is a long-term goal for the majority of younger Canadians as one in four respondents who plan to buy a home in the future think it will take at least 10 years to do so.
Many young Canadians won’t ask families for financial support
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When it comes to purchasing a home, previous research has shown that the bank of mom and dad or other family support has been crucial for Canadians trying to get into the housing market.
According to a report from Zolo, a national real estate marketplace, borrowing money from family has become a “mandatory” practice for many looking to buy property.
Zolo conducted a survey of homebuyers who purchased homes in 2022. The agency found that 47% of Canadians receive money from family or an inheritance “to boost” their down payment. An additional 24% use their partner’s family’s money for a down payment.
However, according to Royal LePage’s recent survey, a surprisingly large number of respondents who want to buy (47%) said they would not receive any familial financial assistance towards their property purchase.
One in 10 said their family would give them a one-time, lump-sum gift towards a home purchase and 13% said they would be gifted money to pay for other expenses (like tuition, and living costs), to put more of their income into savings for a home.
Despite these findings, it appears that more Canadians are finding more creative ways to afford a home.
A 2023 Royal LePage survey on Canadian adults who co-home a home with someone other than their spouse found that 76% of respondents said they had to consider the option due to “lack of housing affordability.”
Are you a young Canadian hoping to buy a home someday? Do you expect any financial help from your family? Email us at [email protected], and we’ll contact you for a future story. Confidentiality can be accommodated.