Two thirds of millennials plan to make the move to home ownership, but nearly half of them have no savings
Majority of Canadians say something should be done to help millennials get into the housing market
Two thirds (64 per cent) of millennials plan to make the move to home ownership, with 63 per cent of them looking to buy in the next five years, but nearly half (44 per cent) say they have not started to save, finds a new poll by among young Canadians aged 18–34.
Faced with a myriad of financial challenges, 54 per cent of future millennial buyers say coming up with the required down payment is the biggest obstacle to home ownership, while approximately half are concerned that job security (53 per cent) and rising real estate prices (46 per cent) will impact their ability to buy.
“Millennials want to own, and many plan to do so in the next few years but they’re facing many obstacles and competing financial priorities,” says Barry Gollom, Vice President, Mortgages & Lending, CIBC. “It’s important that they sit down with an advisor and map out a realistic time frame for making their dreams of homeownership a reality – it’s not easy, but it’s attainable.”
As millennials struggle with budgeting for home buying, the majority (56 per cent) of Canadians are sympathetic and say something should be done to help the younger generation enter the housing market. In fact, three-quarters (77 per cent) believe that buying a home is more difficult for young Canadians today than it was for previous generations, another poll from CIBC finds.
“It’s not just young Canadians that feel that buying and maintaining a home is a challenge for their generation,” adds Mr. Gollom. “Canadians across the board regardless of age agree and a majority are calling out that something should be done to help.”
Key poll findings include:
- 16 per cent of Canadians aged 18-34 have already bought a home
- 64 per cent of Canadians aged 18–34 say that their future plans include buying a home. Among them:
- 63 per cent plan to do so within the next five years, and
- 44 per cent have not started to save yet for their down payment.
- 54 per cent of millennials planning to buy a home say that saving enough for the required down payment is the biggest obstacle to home ownership. Other roadblocks include:
- Job security and earning enough to afford mortgage payments (53 per cent). This is the biggest concern for millennials in Ontario (60 per cent)
- Rising real estate prices (46 per cent). This is the key deterrent for millennials in British Columbia (72 per cent)
- Managing competing financial priorities, such as paying down debt (45 per cent)
- 56 per cent of Canadians say something should be done to help young Canadians get into the housing market, including:
- 68 per cent of Canadians aged 18-34,
- 52 per cent of Canadians aged 35-54, and
- 51 per cent of Canadians aged 55+.
- 77 per cent of Canadians say buying a home today is more difficult for young Canadians than it was for previous generations